Teamsters approve UPS contract, removing strike threat.
The Teamsters Union Ratifies Contract with UPS, Avoiding Strike
The Teamsters Union has officially ratified their contract with United Parcel Service (UPS), eliminating the risk of a nationwide strike that would have disrupted shipments across the United States.
On August 22, the International Brotherhood of Teamsters announced on social media that drivers had overwhelmingly voted to ratify a “historic collective bargaining agreement” with the shipping giant.
The tentative deal between UPS and the Teamsters was reached on July 25, just days before their previous contract was set to expire at the end of the month. However, it took some time to iron out the remaining details.
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The ratification process took four weeks to complete, following tense negotiations over the summer. With over 300,000 UPS employees threatening to strike without a new deal, the outcome was crucial.
“Our Teamsters-represented employees have voted to overwhelmingly ratify a new five-year National Master Agreement that covers more than 300,000 full- and part-time UPS employees in the U.S,” stated UPS in a press release.
“All local supplemental agreements have also been ratified, except for one which will be finalized shortly. Voting results for agreements covering UPS employees under locals 705 and 710 are expected soon.”
Teamsters Ratify New Contract After Months of Concerns
The Teamsters voted to ratify the agreement with the support of 86.3 percent of its members at UPS. The contract will be retroactively effective from August 1.
This vote marked the largest margin in favor of a contract ever at UPS, with a record-breaking 58 percent of members participating.
The new five-year contract includes wage increases for both full- and part-time workers, enhanced workplace protections such as the addition of air conditioning to delivery trucks, and the promise of more full-time job opportunities.
The agreement had overwhelming support among union leadership, with a vote of 161-1 in favor of the deal. Teamsters General President Sean O’Brien referred to it as “the most lucrative agreement the Teamsters have ever negotiated at UPS.”
“This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention,” said O’Brien in an Aug. 22 press statement.
The union announced that all supplemental agreements were also ratified for the 300,000 UPS employees, except for the “Local 769 LAI supplement” covering 174 members in Florida.
O’Brien expects to negotiate a new deal for the workers in Miami, Florida, by this weekend, which will allow the full national agreement to take effect.
The Teamsters stated that the nationwide agreement with UPS will take effect ”as soon as this supplement is renegotiated and ratified.”
The union highlighted over 60 changes and improvements to the national master agreement, making it the most comprehensive in Teamsters history.
UPS Employees to Receive Generous Concessions
Full and part-time union members will receive an additional $2.75 per hour this year, with total raises reaching $7.50 an hour by 2028. This translates to over $15,000 a year for full-time workers.
Existing part-time workers will see their wages raised to no less than $21 per hour immediately, and part-time seniority workers earning more under a market rate adjustment will still receive all new general wage increases.
With these wage increases, UPS Teamsters will become the highest-paid delivery drivers in the nation, with an average top rate of $49 per hour.
While some part-time UPS workers expressed dissatisfaction with the deal, the agreement had overall support among different categories of workers.
One popular concession was the elimination of a lower pay scale for workers hired since 2018. Additionally, UPS agreed to add air conditioning to 95,000 delivery vans in its American trucking fleet, addressing a major health concern.
UPS has committed to purchasing air conditioning units for these vans.
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