UPS workers hold placards at a rally held by the Teamsters Union on July 19, 2023 in Los Angeles, California, ahead of an August 1st deadline for an agreement on a labor contract deal and to avert a strike that could lead to billions of dollars in economic losses. (Photo by FREDERIC J. BROWN/AFP via Getty Images)
OAN’s Brooke Mallory
3:34 PM – Tuesday, July 25, 2023
On Tuesday, UPS and the Teamsters union, which represents approximately 340,000 workers at the package carrier, announced a tentative labor agreement that includes raises for both full-time and part-time employees avoiding a potential strike that was scheduled to begin next week.
It was the latest in a series of labor agreements that workers, ranging from pilots to aerospace production workers, campaigned for in order to secure better pay.
According to Teamsters General President Sean O’Brien, the reached agreement is worth $30 billion.
“The union went into this fight committed to winning for our members. We demanded the best contract in the history of UPS, and we got it,” he said.
Existing part-time workers would be paid at least $21 an hour, and full-time employees would earn an hourly wage of $49 on average if the new contract is approved, according to the union. Current employees would also earn $2.75 more per hour this year and $7.50 more per hour over the course of the five-year deal.
According to a contract outline obtained by the Teamsters, the agreement would also abolish obligatory overtime on drivers’ days off.
“Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers,” said UPS CEO Carol Tomé. “This agreement continues to reward UPS’s 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.”
Workers must still approve the tentative agreement. UPS employees represented by Teamsters decided to allow a strike beyond July 31st if the two parties could not reach an agreement. The strike would reportedly have repercussions in areas like retail that rely heavily on the package service giant.
The tentative deal was applauded by the National Retail Federation.
“UPS is a major partner of the retail industry, and we are grateful it came to an agreement with the Teamsters without disruption to the marketplace,” said Matthew Shay, CEO of the trade group. “Retailers rely on stability within their supply chains, and this agreement will bring long-term stability, as well as assurance to the millions of businesses and employees who rely on smooth and efficient last-mile delivery.”
Despite early agreements, several recent labor discussions have not resulted in new contracts. Pilots at UPS rival FedEx had rejected a proposed labor agreement on Monday, with 57% voting against it.
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