UPS’s CEO has said that at the conclusion of the 5-year agreement, drivers would have earned an average of $170,000


UPS (United Parcel Service) recently reached a tentative five-year contract agreement with the Teamsters Union, covering approximately 340,000 workers. This agreement helped avert a potential strike and is currently undergoing a ratification vote among the workers, with results expected by August 22.

According to UPS CEO Carol Tomé, the agreement outlines that drivers will receive an average of $170,000 in pay and benefits, including healthcare and pensions, over the course of the five-year contract. This deal follows negotiations where part-time workers’ wages became a focal point, resulting in an increase to at least $21 per hour. Full-time workers are expected to average $49 per hour.

The agreement also addresses a significant concern for drivers by ending mandatory overtime on their days off. The ratification of the labor contract is expected to be finalized within the next two weeks, as stated by Tomé during an earnings call.

While this contract benefits workers with higher wages and improved conditions, it has led to some impact on UPS’s financial outlook. The company adjusted its full-year revenue and margin forecasts to account for the volume impact stemming from the labor negotiations and the associated costs of the tentative agreement.

This agreement reflects the broader trend of labor negotiations resulting in higher wages and improved conditions for workers across various industries. The focus on fair compensation and better working conditions has led to successful negotiations, benefitting employees in sectors ranging from delivery services to aviation and manufacturing.

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