UPS, Teamsters reach tentative deal to avoid strike

UPS and the Teamsters today reached a tentative five-year contract agreement to avoid the strike of more than 340,000 workers that was set to begin August 1.

The deal is a “win-win-win agreement” that allows UPS the “flexibility we need to stay competitive, serve our customers and keep our business strong,” UPS CEO Carol Tomé said in a statement.

The Teamsters said the deal features 60+ changes and updates to the National Master Agreement, with zero concessions from the union. UPS “put $30 billion in new money on the table,” Teamster General President Sean M. O’Brien said. Agreements included:

• A number of wage bumps, particularly for part-time workers, which was a major sticking point in negotiations. Existing part-time and full-time UPS Teamsters secured a $2.75 pay increase this year, rising to $7.50 over the course of the contract. New part-timers will also now receive a starting salary of $21 an hour.
• Air conditioning and cargo ventilation in all delivery vehicles, vans, and cars bought after January 1, 2024.
• The establishment of 7,500 new full-time jobs and more opportunities for part-time workers to move to full-time positions.

“We’ve changed the game…This contract sets a new standard in the labor movement and raises the bar for all workers,” O’Brien said.

The agreement, which the UPS Teamsters National Negotiating Committee “unanimously endorsed,” is still subject to Teamsters’ ratification. Representatives from the Teamsters locals will meet on July 31 to review it, and members will vote from August 3 to 22.