UPS Reaches Deal with Teamsters Union, Possibly Avoiding Massive Labor Strike

UPS has reached a preliminary labor deal with Teamsters, its union representing about 340,000 workers, possibly avoiding a potential labor strike that could have started next week.

On Tuesday, the United Postal Service and the Teamsters union reached a preliminary agreement worth around $30 billion. This agreement, subject to union approval, aims to provide both full- and part-time union workers a wage increase and facilitate easier transitions from part-time to full-time positions for workers, according to AP News.

Under this deal, workers would receive an additional $2.75 per hour for this year, and an additional $7.50 per hour over the span of a five-year contract. The agreement also includes a provision to raise the starting pay for part-time workers from $16.20 per hour to $21 per hour. The union advocates for this change, as part-time workers are considered more vulnerable to exploitation, according to the union. For part-time workers, whose average pay used to be $20 per hour, this raise would represent a 5% increase.

The tentative agreement marks a significant triumph for the Teamsters union, following a series of efforts from workers to secure higher wages. If approved, this deal would constitute the largest pay raise in UPS history.

“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,” Teamster’s general president Sean O’Brien said in a statement.

The agreement is set to be voted on beginning August 3 and continue throughout August 22. In the event that the two parties fail to reach an agreement, Teamsters-represented UPS employees have already voted to authorize a strike starting July 31.