UPS and Teamsters Secure 5-Year Contract Deal in 2025, Strike Averted
UPS and the Teamsters union, representing 330,000 U.S. workers, have reached a landmark five-year contract agreement in 2025, successfully preventing a potential strike that was set for August 1.
In a significant development on Tuesday, United Parcel Service (UPS) announced it has reached a tentative five-year contract agreement with the International Brotherhood of Teamsters union. This union represents 330,000 UPS employees across the United States.
This new deal is set to prevent a strike that was scheduled for August 1, 2024, coinciding with the expiration of the existing contract between UPS and the Teamsters.
Highlights of the Agreement
- The five-year contract between UPS and the Teamsters union is the largest private-sector union agreement in North America, covering 330,000 workers.
- UPS has committed to installing air conditioning in delivery vans, enhancing driver comfort and safety amid rising temperatures.
- The union successfully negotiated for improved wages, especially for part-time employees who make up nearly half of UPS’s workforce.
- Additional provisions include efforts to increase full-time job opportunities, address workplace safety concerns, and strengthen protections against managerial harassment.
- The tentative agreement now awaits ratification by Teamsters union members employed at UPS.
The Teamsters union had pushed for better compensation and working conditions, focusing heavily on part-time workers and health and safety measures. Nearly 97% of Teamsters members at UPS had supported the strike authorization, highlighting the urgency of these negotiations.
As the largest private-sector employer in the U.S., UPS faced significant pressure to reach a compromise to avoid disruptions in supply chains and potential inflationary impacts. The agreement includes key concessions such as air-conditioned delivery vans to improve worker wellbeing.
Experts estimated that a UPS strike could have resulted in losses exceeding $7 billion, marking it as one of the most costly labor disputes in the past century.
Following the tentative contract, the agreement will be presented to UPS Teamsters members for a formal vote. Earlier this week, the Teamsters also resolved a labor dispute with Yellow Corp., averting another potential strike by securing extended healthcare benefits for workers.
Financially, UPS reported consolidated revenue of $22.9 billion in Q1 2023 and projects approximately $97 billion in revenue for the full year. Despite the positive labor news, UPS shares dipped over 1.6% to $185.06 midday Tuesday.
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