Delivery giant United Parcel Service (UPS) struck an agreement with the International Brotherhood of Teamsters on Tuesday for a five-year labor contract, avoiding a major strike by hundreds of thousands of workers that could have caused nationwide supply chain disruptions and higher shipping costs.
UPS and the Teamsters union struck a deal to avoid a major strike on Tuesday.
The tentative labor deal between UPS and the Teamsters union—which represents roughly 340,000 delivery drivers and sorters—comes months into negotiations after previous efforts at a deal failed.
UPS CEO Carol Tomé called the deal a “win-win-win agreement” for UPS employees, the Teamsters leadership and UPS customers—a potential strike as short as 10 days had been estimated to cost the U.S. economy as much as $7 billion, according to consulting firm Anderson Economic Group.
The deal still requires a ratification vote by UPS employees.
This is a developing story and will be updated.
UPS Workers Could Go On Strike As Teamsters Say Negotiations Broke Down (Forbes)
UPS Strike Could Cost U.S. Economy Billions—Here’s How It Would Impact Consumers And Businesses (Forbes)