Teamsters Union and UPS Agree on Contract, Avoiding Strike

The Teamsters Union, which represents the 340,000 UPS workers prepared to strike should their contract expire next week, found an agreement with UPS, avoiding a strike that would've put an enormous strain on the supply chain and promotional products industry.

"The union went into this fight committed to winning for our members," Teamsters general president Sean O'Brien said in a statement. "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.”

💥“WE’VE CHANGED THE GAME”: TEAMSTERS WIN HISTORIC UPS CONTRACT💥

Today, the #Teamsters reached the most historic tentative agreement for workers in the history of @UPS, protecting and rewarding more than 340,000 UPS Teamsters nationwide. #1u pic.twitter.com/4Ap3j4XUTD

— Teamsters (@Teamsters) July 25, 2023

Union representatives returned to the bargaining table this week with UPS to hammer out details over part-time drivers and other demands over quality of life in the workplace, such as air conditioning in vehicles and overtime pay.

The new contract includes a minimum of $21 per hour for existing part-time workers. Full-time employee will average $49 per hour. The contract also will end mandatory overtime on drivers' days off, and includes safety improvements like in-cab air conditioning in delivery vehicles.

The contract still needs to be ratified by workers, but it was approved unanimously by union representatives.

"Together we reached a win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS, and our customers, UPS CEO Carol Tome said in a statement. "This agreement continues to reward UPS's full- and part-time employees with industry-leading pay and benefits, while retaining the flexibility we need to stay competitive, serve our customers, and keep our business strong."

Had UPS have gone on strike next week, it would have been the first time since 1997, when a strike lasted for 15 days. Handling about a quarter of the nation's small packages, a UPS strike would have put unmanageable pressure on other logistics companies, and ended with delays or worse.