UPS workers ratified the labor deal negotiated by the Teamsters nearly a month ago, which will allow the five-year contract to take effect.
Teamsters President Sean O’Brien said in a statement Tuesday: “This contract will improve the lives of hundreds of thousands of workers. Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry. This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.”
More than 86% of UPS union members voted in favor of the deal covering 340,000 employees, which officially removes the threat of a strike at UPS. Logistics experts had warned that a protracted work stoppage at the carrier would have caused widespread disruptions across the U.S. UPS confirmed the vote results, saying in a statement, “Our Teamsters-represented employees have voted to overwhelmingly ratify a new five-year National Master Agreement.”
The new UPS agreement eliminates the criticized two-tiered wage system and institutes raises across the package carrier’s workforce. Current full- and part-time union workers are guaranteed a $2.75 hourly pay increase this year amounting to a $7.50 hourly increase through the duration of the contract. Pay for existing and starting part-time workers will be raised to at least $21 per hour immediately, advancing to $23 per hour. Current part-timers also won longevity wage increases of up to $1.50 per hour. Wage increases for full-time drivers would bring their average top rate to $49 per hour.
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