UPS reaches tentative deal to avoid strike


UPS reached a tentative deal with its Teamsters union on Tuesday, potentially avoiding a strike that could have caused supply chain disruptions across the country.
The deal is "a win-win-win agreement on the issues that are important to Teamsters leadership, our employees, and to UPS and our customers," UPS CEO Carol Tomé said in a press release. "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."
The five-year agreement between UPS and the Teamsters, which represents 340,000 UPS workers, was the final step in a series of negotiations. The two sides had previously shaken hands on several key issues, but had been holding out over pay for part-time workers, The Associated Press reported. The agreement now awaits ratification by UPS' union members.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The new agreement "raises wages for all workers, creates more full-time jobs, and includes dozens of workplace protections and improvements," the Teamsters said in a statement. If ratified, both full- and part-time union workers will get $7.50 per hour more by the end of the five years. Part-time workers' starting pay will also be increased to $21 per hour. Full-time drivers will receive an average of $49 per hour, which the Teamsters said will make them "the highest-paid delivery drivers in the nation."
Teamsters employees were just one week away from a planned strike if no deal occurred. This could have crippled the American parcel industry, as UPS delivers an average of 24.3 million packages per day, according to its company profile. UPS says this is equal to about 6% of the country's entire gross domestic product. A study from Anderson Economic Group cited by the AP said a strike "could have cost the U.S. economy more than $7 billion."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other news. Justin has also freelanced for outlets including Collider and United Press International.
-
‘A legacy news brand brings a visibility of its own’
Instant Opinion Opinion, comment and editorials of the day
-
8 of the best ‘cozy crime’ series of all time
The Week Recommends Murder mysteries don’t necessarily have to make us miserable, and these shows have perfected a feel-good crime formula
-
Youth revolts rattle Morocco as calls against corruption grow louder
THE EXPLAINER Snowballing controversy over World Cup construction and civic services has become a serious threat to Morocco’s political stability
-
Bondi stonewalls on Epstein, Comey in Senate face-off
Speed Read Attorney General Pam Bondi denied charges of using the Justice Department in service of Trump’s personal vendettas
-
Court allows Trump’s Texas troops to head to Chicago
Speed Read Trump is ‘using our service members as pawns in his illegal effort to militarize our nation’s cities,’ said Gov. J.B. Pritzker
-
Judge bars Trump’s National Guard moves in Oregon
Speed Read In an emergency hearing, a federal judge blocked President Donald Trump from sending National Guard troops into Portland
-
Museum head ousted after Trump sword gift denial
Speed Read Todd Arrington, who led the Dwight D. Eisenhower Presidential Library and Museum, denied the Trump administration a sword from the collection as a gift for King Charles
-
Trump declares ‘armed conflict’ with drug cartels
speed read This provides a legal justification for recent lethal military strikes on three alleged drug trafficking boats
-
Supreme Court rules for Fed’s Cook in Trump feud
Speed Read Federal Reserve Governor Lisa Cook can remain in her role following Trump’s attempts to oust her
-
Judge rules Trump illegally targeted Gaza protesters
Speed Read The Trump administration’s push to arrest and deport international students for supporting Palestine is deemed illegal
-
Trump: US cities should be military ‘training grounds’
Speed Read In a hastily assembled summit, Trump said he wants the military to fight the ‘enemy within’ the US