UPS, the shipping giant, seems to have averted a strike in the US by reaching a tentative deal with the union representing a significant portion of its workforce.
The union stated that the agreement would establish a "new standard" for all delivery workers, providing wage increases, more full-time positions, and "dozens" of additional workplace improvements and protections.
Additionally, the deal sets the starting pay at $21 per hour for new part-time employees.
UPS described it as a "win-win-win" deal.
UPS CEO Carole Tomé mentioned that the agreement would continue to reward UPS employees with "industry-leading pay and benefits" while enabling the company to remain competitive.
UPS has the largest unionized workforce of any company in the US, with over 300,000 full- and part-time workers, including drivers, represented by the International Brotherhood of Teamsters union.
A potential strike could have had a significant impact on the US economy, as the company handles an estimated quarter of the daily shipped parcels.
In recent weeks, the union had been conducting practice strike pickets to put pressure on the company after talks broke off earlier this month. The proposed five-year contract will now be presented to union members for approval.
Teamsters General President Sean M. O'Brien stated that UPS agreed to allocate an additional $30 billion on workers due to union pressure.
"We demanded the best contract in the history of UPS, and we got it," he said. "This contract sets a new standard in the labor movement and raises the bar for all workers."
Under the agreement, existing full- and part-time members will receive an additional $2.75 per hour in 2023 and $7.50 per hour over the five-year contract period.
The union reported that pay for part-time workers, which had been a contentious issue during negotiations, would increase by an average of 48% for existing staff by 2028.
As part of the deal, UPS will recognize Martin Luther King Jr. Day in January as a holiday for the first time and will stop requiring drivers to work overtime on scheduled days off, according to the union.
Furthermore, the company committed to ensuring air conditioning in all larger delivery vehicles, sprinter vans, and package cars purchased after January 1, 2024.
Lennox James, who has been part-time employed by the company for nearly 16 years, mentioned that he earned around $20 an hour. He stated that he planned to carefully review the proposed contract terms but that it seemed "positive" at first glance.
The 51-year-old expressed hope that he might eventually transition into a full-time position.
Mr. James, also a leader of the Brooklyn chapter of Teamsters, said he was gratified to see the union finally fight for workers like him.
"It's been a long time coming," he said, adding "It's never too late." Photo by Qualle, Wikimedia commons.