UPS and Teamsters Reach Tentative 5-Year Deal

UPS has successfully reached a tentative agreement with the Teamsters union, effectively preventing a potentially disruptive nationwide strike that could have had severe implications for online businesses and the economy as a whole.

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The deal encompasses several essential benefits, including higher wages for workers and the implementation of air conditioning in delivery trucks, a long-standing demand of the union members.

“Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits. Teamster labor moves America,” said Teamsters General President Sean M. O’Brien.

“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,

“UPS has put $30 billion in new money on the table as a direct result of these negotiations. 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.”

Tensions had been building between the Teamsters and UPS over the past years. Early negotiations had focused on safety concerns, with both sides reaching a consensus on adding air conditioning equipment to more UPS trucks.

Starting from January 1, 2024, UPS committed to outfitting its U.S. small delivery vehicles with air conditioning.

Another contentious issue that posed challenges during the negotiations was the existence of a two-tier wage system in the current agreement. Under the new agreement, this system will be eradicated, aiming to ensure more equitable pay for all workers.

According to The Teamsters, highlights of the tentative 2023-2028 UPS Teamsters National Master Agreement include:

• “Historic wage increases. Existing full- and part-time UPS Teamsters will get $2.75 more per hour in 2023, and $7.50 more per hour over the length of the contract.
• “Existing part-timers will be raised up to no less than $21 per hour immediately, and part-time seniority workers earning more under a market rate adjustment would still receive all new general wage increases.
• “General wage increases for part-time workers will be double the amount obtained in the previous UPS Teamsters contract – and existing part-time workers will receive a 48 percent average total wage increase over the next five years.
• “Wage increases for full-timers will keep UPS Teamsters the highest-paid delivery drivers in the nation, improving their average top rate to $49 per hour.
• “Current UPS Teamsters working part-time would receive longevity wage increases of up to $1.50 per hour on top of new hourly raises, compounding their earnings.
• “New part-time hires at UPS would start at $21 per hour and advance to $23 per hour.
• “All UPS Teamster drivers classified as 22.4s would be reclassified immediately to Regular Package Car Drivers and placed into seniority, ending the unfair two-tier wage system at UPS.
• “Safety and health protections, including vehicle air conditioning and cargo ventilation. UPS will equip in-cab A/C in all larger delivery vehicles, sprinter vans, and package cars purchased after Jan. 1, 2024. All cars get two fans and air induction vents in the cargo compartments.
• “All UPS Teamsters would receive Martin Luther King Day as a full holiday for the first time.
• “No more forced overtime on Teamster drivers’ days off. Drivers would keep one of two workweek schedules and could not be forced into overtime on scheduled off days.
• “UPS Teamster part-timers will have priority to perform all seasonal support work using their own vehicles with a locked-in eight-hour guarantee. For the first time, seasonal work will be contained to five weeks only from November-December.
• “The creation of 7,500 new full-time Teamster jobs at UPS and the fulfillment of 22,500 open positions, establishing more opportunities through the life of the agreement for part-timers to transition to full-time work.
• “More than 60 total changes and improvements to the National Master Agreement – more than any other time in Teamsters history – and zero concessions from the rank-and-file.”

UPS Tentative Contract Goes to Membership Next

The fate of the agreement now lies in the hands of the Teamsters’ membership. Coming up on July 31, delegates from the 176 UPS Teamster locals across the U.S. and Puerto Rico will convene for a crucial session to assess and endorse the proposed agreement.

This means that all UPS rank-and-file members will be provided with a comprehensive list of enhancements outlined in the contract.

Subsequently, individual locals will organize member meetings, allowing members ample time to cast their votes electronically. The voting process will kick off on August 3 and conclude on August 22.