UPS and Teamsters Reach Tentative Five-Year Contract Agreement

In a significant development, UPS and the Teamsters Union have successfully reached a preliminary five-year contract on Tuesday, effectively averting a potential strike on August 1st that could have had serious consequences for the U.S. economy.

Key Points of the Agreement:

  • The creation of 7,500 full-time Teamsters jobs and 22,500 open positions will be filled.
  • Existing full-time and part-time workers will see an increase of $2.75 per hour in 2023, with an additional $7.50 per hour over the contract’s duration.
  • Existing part-timers will be raised to $21 per hour immediately, while new part-timers will start at $21 per hour and advance to $23 per hour.
  • Wage increases for full-timers which will result in an average of around $49 hourly rate.
  • Part-time workers will receive double the wage increase compared to the previous contract, resulting in an average total wage increase of 48% over five years.
  • UPS will add air conditioning to small delivery vehicles in the U.S. purchased after the beginning of 2024.
  • UPS Teamsters part-timers will have priority for seasonal support work using their personal vehicles, with an eight-hour guarantee.
  • Both UPS and the Teamsters have hailed the agreement as “historic.” The deal was praised by UPS CEO Carol B. Tomé as a “win-win-win agreement” that addresses the concerns of all stakeholders.

The contract is scheduled to be presented to 340,000 rank-and-file members for ratification on Thursday, August 3rd, with voting expected to conclude by August 22nd.

Noatum Logistics will continue to release updates as received.

 

If you have any questions, please contact your local Noatum Logistics representative.