UPS has reached a tentative contract with its 340,000-person union, potentially averting a strike that threatened to disrupt package deliveries for millions of businesses and households nationwide, the Associated Press reports.
The agreement was announced Tuesday, the first day that UPS and the Teamsters returned to the table after contentious negotiations broke down earlier this month.
Negotiators had already reached tentative agreements on several issues but continued to clash over pay for part-time workers, who make up more than half of the UPS employees represented by the union.
Under the tentative agreement, which still needs union members’ approval, full- and part-time union workers will get $2.75 more per hour in 2023 and $7.50 more by the end of the five-year contract. The agreement also includes a provision to increase starting pay for part-time workers — whom the union says are the most at risk of exploitation — from $16.20 per hour to $21 per hour. The average pay for part-timers had been $20.
Teamsters General President Sean M. O’Brien said in a statement that UPS put $30 billion more on the table due to the negotiations.
The two sides had already tentatively agreed to make Martin Luther King Jr. Day a full holiday and to end forced overtime on drivers’ days off. Tentative agreements on safety issues were also reached, including equipping more trucks with air conditioning.
UPS had also agreed to eliminate a lower-paid category of drivers, who work shifts that include weekends, and convert them into regular full-time drivers. Under the agreement, the company will create 7,500 full-time jobs and fill 22,500 open positions, allowing more part-timers to transition to full-time.
Voting on the new contract begins Aug. 3 and concludes Aug. 22.
