Teamsters union and UPS have reached a preliminary agreement on a five-year contract that covers the working conditions for approximately 340,000 unionized employees at the shipping giant. The contract, if approved, would prevent the largest UPS strike in 60 years from occurring. The Teamsters described the contract as “overwhelmingly lucrative,” stating that it includes wage increases for all workers, the creation of more full-time jobs, and numerous workplace protections and improvements.

Under the new contract, part-time workers’ starting pay will increase from the current rate of $15.50 per hour to $21 per hour, and long-time workers will receive catch-up raises. Full-time employees will see their top hourly rate rise to $49 per hour. The agreement also provides for air conditioning in trucks, paid time off for Martin Luther King Jr. Day, and the addition of more full-time positions.

In a statement, Teamsters President Sean O’Brien expressed satisfaction with the contract, stating that UPS workers had made significant sacrifices during the pandemic, which contributed to the company’s record-setting profits. UPS CEO Carol Tomé also praised the agreement, highlighting the industry-leading pay and benefits it offers to employees while maintaining the company’s competitive edge and strong business performance.

The issue of part-time workers’ pay had been a major point of contention in the negotiations. Many employees criticized the two-tier wage system in the current contract, which went into effect on a technicality after being rejected by most UPS workers. The Teamsters’ new leadership deemed the system unfair, and it will be eliminated under the terms of the new agreement.

UPS has experienced record profits over the past two years, fueled by the pandemic’s transformation of how Americans shop and receive their goods. The voting on the contract will take place from August 3 to August 22.

In conclusion, UPS and the Teamsters union have reached a tentative agreement on a new contract that would improve working conditions and wages for unionized employees. The contract, if ratified, would avert a potentially significant strike at UPS. The agreement includes wage increases, the elimination of a two-tier wage system, workplace improvements, and additional benefits for employees. Both the Teamsters and UPS leadership have expressed satisfaction with the contract, highlighting its industry-leading pay and flexibility. Voting on the contract will occur in early August.