UPS has reached a contract agreement with its 340,000-person strong union, averting a strike that had the potential to disrupt logistics nationwide for businesses and households alike.
Members of the Teamsters, angered by a contract they say was forced on them five years ago by union leadership, clashed with UPS over pay as profits for the delivery company soared in recent years. Union leadership was upended last year with the election of Sean O'Brien, a vocal critic of the union president who signed off on that contract, James Hoffa, the son of the famous Teamsters firebrand.
Wage increases for full-time employees, improving their top rate to $49 per hour, making UPS Teamsters "the highest paid delivery drivers in the nation"Martin Luther King Jr. Day as a holiday for the first time for all UPS TeamstersThe creation of 7,500 new full-time Teamster jobs at UPS and fulfillment of 22,500 open positions
In a statement Tuesday afternoon, President Joe Biden congratulated UPS management and Teamsters negotiators on reaching the tentative agreement, saying that the announcement "moves us clsoer to a better deal for workers that will also add to our economic momentum." The two sides reached a tentative agreement early on safety issues, including equipping more trucks with air conditioning equipment. Under the agreement, UPS said it would add air conditioning to U.S. small delivery vehicles purchased after January 1, 2024.
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