UPS, along with the International Brotherhood of Teamsters, which is the labor union representing around 330,000 UPS workers in the United States, has come to a preliminary agreement through collective bargaining. This positive development has prevented a potential strike scheduled for July 31, which could have caused significant disruptions to the country’s supply chain.

“Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees, and to UPS and our customers,” said Carol Tomé, UPS chief executive officer. “This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.”

“We demanded the best contract in the history of UPS, and we got it,” said Teamsters General President Sean M. O’Brien. “UPS has put $30 billion in new money on the table as a direct result of these negotiations. We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession. This contract sets a new standard in the labor movement and raises the bar for all workers.”

The recently reached five-year agreement pertains to employees in small-package roles who are represented by the Teamsters in the United States. However, before it becomes official, the agreement must undergo voting and ratification by the union members.

The Teamsters have stated that their National Master Agreement includes the following provisions:

  • Historic wage increases. Existing full- and part-time UPS Teamsters will get $2.75 more per hour in 2023, and $7.50 more per hour over the length of the contract.
  • Existing part-timers will be raised up to no less than $21 per hour immediately, and part-time seniority workers earning more under a market rate adjustment would still receive all new general wage increases.
  • General wage increases for part-time workers will be double the amount obtained in the previous UPS Teamsters contract — and existing part-time workers will receive a 48 percent average total wage increase over the next five years.
  • Wage increases for full-timers will keep UPS Teamsters the highest paid delivery drivers in the nation, improving their average top rate to $49 per hour.
  • Current UPS Teamsters working part-time would receive longevity wage increases of up to $1.50 per hour on top of new hourly raises, compounding their earnings.
  • New part-time hires at UPS would start at $21 per hour and advance to $23 per hour
  • Safety and health protections, including vehicle air conditioning and cargo ventilation. UPS will equip in-cab A/C in all larger delivery vehicles, sprinter vans, and package cars purchased after Jan. 1, 2024. All cars get two fans and air induction vents in the cargo compartments.
  • All UPS Teamsters would receive Martin Luther King Day as a full holiday for the first time.
  • No more forced overtime on Teamster drivers’ days off. Drivers would keep one of two workweek schedules and could not be forced into overtime on scheduled off days.
  • The creation of 7,500 new full-time Teamster jobs at UPS and the fulfillment of 22,500 open positions, establishing more opportunities through the life of the agreement for part-timers to transition to full-time work.