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.
-
‘The worry is far from fanciful’Instant Opinion Opinion, comment and editorials of the day
-
How are Americans bracing for the end of SNAP?TODAY'S BIG QUESTION Millions depend on supplemental federal food funds that are set to expire this month, as the government shutdown begins to be acutely felt
-
Book review: ‘Joyride: A Memoir’Feature A journalist’s story of how she chased and accomplished her dreams
-
Shutdown stalemate nears key pain pointsSpeed Read A federal employee union called for the Democrats to to stand down four weeks into the government standoff
-
Trump vows new tariffs on Canada over Reagan adspeed read The ad that offended the president has Ronald Reagan explaining why import taxes hurt the economy
-
The Icelandic women’s strike 50 years onIn The Spotlight The nation is ‘still no paradise’ for women, say campaigners
-
NY attorney general asks public for ICE raid footageSpeed Read Rep. Dan Goldman claims ICE wrongly detained four US citizens in the Canal Street raid and held them for a whole day without charges
-
Trump’s huge ballroom to replace razed East WingSpeed Read The White House’s east wing is being torn down amid ballroom construction
-
Trump expands boat strikes to Pacific, killing 5 moreSpeed Read The US military destroyed two more alleged drug smuggling boats in international waters
-
Trump demands millions from his administrationSpeed Read The president has requested $230 million in compensation from the Justice Department for previous federal investigations
-
Trump nominee in limbo after racist texts leakSpeed Read Paul Ingrassia lost Republican support following the exposure of past racist text messages
