UPS and Teamsters attain working settlement to keep away from strike

UPS and the Teamsters union, which represents 340,000 workers at the parcel delivery company, said Tuesday it had reached a tentative labor agreement that would include pay rises for both full- and part-time workers and narrowly avoid a potential strike that could have started next week.

“Together, we have achieved a win-win-win agreement on issues that matter to Teamsters leadership, our employees, and UPS and our customers,” said Carol Tome, UPS CEO. “With this agreement, UPS full-time and part-time employees will continue to be rewarded with industry-leading wages and benefits while maintaining the flexibility we need to remain competitive, serve our customers, and keep our business strong.”

It was the latest in a series of collective agreements in which workers, from pilots to aerospace workers, have pushed for and won higher wages.

A United Parcel Service (UPS) driver pushes a dolly carrying packages to a delivery truck on a New York street.

Victor J Blue | Bloomberg | Getty Images

Existing part-time workers would make at least $21 an hour if workers agree to the new contract, the union said. Full-time employees pay an average of $49 per hour. According to a draft contract provided by the Teamsters, the obligatory overtime on the drivers’ days off would also be abolished. UPS did not immediately confirm the possible new wages.

The preliminary deal has yet to be ratified by workers. The union could have started a massive strike after July 31 if both sides failed to reach an agreement.

“The union went into this fight with a will to win for our members. We asked for and got the best contract in UPS history,” Teamsters President Sean O’Brien said in a statement. “UPS has brought $30 billion in new money to the table as a direct result of these negotiations.”

Some recent collective bargaining has not resulted in an agreement. On Monday pilots compete at UPS FedEx opposed an interim labor agreement, with 57% voting against the agreement.

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