UPS and the Teamsters Union on Tuesday reached a conditional agreement that helps the company avoid a massive strike.
“This agreement continues to reward UPS’ full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong,” UPS CEO Carol Tome said in the statement.
The deal includes a $2.75 wage increase per hour for full- and part-time employees this year and a boost next year of $7.50 per hour over the length of the new contract. The pact is for five years. Part-time workers, who are often paid much less than full-time employees, will immediately have their wages rise to at least $21 an hour.
The deal also adds Martin Luther King Day to the list of paid holidays off and ends forced overtime on off days.
In a significant victory for the union, the new deal ends the two-tiered classification for drivers, providing part-timers the same privileges as full-timers.
Union officials declared victory shortly after the deal was announced.
“We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor and doesn’t require a single concession. This contract sets a new standard in the labor movement and raises the bar for all workers,” Teamsters President Sean O’Brien said in a statement.
Unionized UPS drivers’ contract was set to expire July 31, meaning that around 340,000 workers were set to walk off the job Aug. 1. The tentative agreement narrowly avoids that strike and lets UPS customers and business owners breathe a sigh of relief.
Contract negotiations were often strained. In the lead-up to the tentative contract, both sides accused the other of not negotiating in good faith. A strike seemed inevitable last week when Mr. O’Brien asked President Biden to not intervene if the union walked out.
Details of the deal have not been made public. Workers were looking for increased pay, improved working conditions and more full-time positions.
Union members will be able to vote on the new agreement from Aug. 3 to 22.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.