UPS Reaches Teamsters Deal With '$30 Billion in New Money'

UPS appears to have avoided a strike that would have seen hundreds of thousands of workers walk off the job next week.

America's largest parcel carrier has reached a tentative working agreement with the International Brotherhood of Teamsters, the two partners announced Tuesday. They agreed to a collective bargaining agreement before July 31, when the contract covering UPS's 340,000 unionized employees expires.

The five-year agreement covers employees represented by the United States Teamsters in restricted roles. Union members have yet to vote and ratify the deal.

"Together, we have reached a win-win agreement on issues that are important to Teamsters leadership, our employees, UPS and our customers," UPS CEO Carol Tomé said in a statement. "This agreement continues to reward full-time and part-time UPS employees with industry-leading compensation and benefits while maintaining the flexibility we need to stay competitive, serve our customers, and maintain the strength of our business."

A deal was reached just a day after UPS resumed lengthy Teamsters talks. The company pulled out of the table on July 5 after the Teamsters rejected the shipping giant's latest proposal.

Under the tentative framework agreement, existing full-time and part-time UPS Teamsters will see their hourly wages increase by $2.75 in 2023 and $7.50 over the term of the contract.

Full-time wages now average $49 per hour for top earners.

Existing part-timers will immediately increase to no less than $21 per hour from a current minimum of $16.20, and part-timers with more seniority as part of a market rate adjustment will receive all new general wage increases.

These existing part-time workers will receive an average total wage increase of 48% over the next five years, the Teamsters said in a statement.

New part-time hires at UPS would start at $21 per hour and increase to $23 per hour.

Part-time workers represented by Teamster will be given priority to perform all seasonal support work using their own vehicles with an immobilized eight-hour warranty. For the first time, seasonal work will be limited to only five weeks from November to December.

Up to 30,000 new jobs will be created under the new contract, including 7,500 full-time Teamster jobs.

Competing logistics players who were anticipating a significant increase in package volume to take over from a UPS strike may now be missing out, but many across the la...