UPS Labor Contract Deal

UPS reached a tentative five-year agreement with about 340,000 Teamsters union workers yesterday, one week ahead of a potential strike that would have disrupted supply chains nationwide.

The historic $30B deal, considered to be the largest private sector contract in North America, includes higher pay for part-time workers, who comprise more than half of the UPS employees represented by the union. The minimum starting wage for part-time workers would rise to $21 per hour from $16.20. Hourly pay for existing full- and part-time workers would increase by $7.50 over the duration of the contract. The deal would also require air conditioning in delivery trucks purchased after Jan. 1, 2024, and make Martin Luther King Jr. Day a full holiday for the first time. Union members will vote on the deal from Aug. 3 to Aug. 22. See contract details here.

Last year, UPS workers, on average, sorted and delivered 24.3 million packages a day, amounting to 6.2 billion packages annually, up from 5.5 billion in 2019.