UPS and Teamsters Labor Union Enter $30 Billion Collective Bargaining Agreement

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On July 25, the United Parcel Service (“UPS”) and labor union International Brotherhood of Teamsters (“Teamsters”) reached a tentative collective bargaining agreement for approximately 340,000 UPS workers. The deal was reached a week before a threatened strike that could have disrupted a quarter of the nation’s package shipments and cost the economy billions.

Five-Year Agreement

The tentative agreement, valued at $30 billion, covers US Teamsters-represented employees in small-package roles and is subject to voting and ratification by union members. Under the agreement, employees would be granted an extra paid holiday (Martin Luther King Day) and historic wage increases: up to $21/hour for part-time employees, and an average rate of $49/hour for full-time employees. The agreement also includes safety and health precautions, including vehicle air conditioning and cargo ventilation.

Job Creation

Under the agreement, UPS will create 7,500 new-full time jobs and fill 22,500 open positions, which will provide more opportunities for part-time employees to transition to full-time work through the life of the agreement. Part-time employees will have priority to perform all seasonal support work using their own vehicles with a locked-in eight-hour guarantee. Seasonal work will be contained to five weeks only from November to December. The agreement prohibits forced overtime on delivery drivers’ days off.

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