UPS, Teamsters Union Reach Bargaining Agreement, Avoid Strike
UPS and the Teamsters union, which represents UPS employees, reached a tentative five-year collective bargaining agreement, the two sides announced July 25, ending the possibility of a strike at the beginning of next month. The agreement covers union employees in "small-package roles," UPS said, and will need to be approved and rarified by union members. The Teamsters said voting will take place from Aug. 3 to Aug. 22.
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The deal includes wage increases, new employee safety and health protections, no more forced overtime on drivers' days off and will create "7,500 new full-time Teamster jobs at UPS and the fulfillment of 22,500 open positions," the Teamsters said, "establishing more opportunities through the life of the agreement for part-timers to transition to full-time work." Teamsters had previously said they would not work past their Aug. 1 deadline without a new contract (see 2306300084).
“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,” UPS CEO Carol Tomé said. “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.”
UPS union employees "sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits," Teamsters General President Sean O’Brien said. "The union went into this fight committed to winning for our members. We demanded the best contract in the history of UPS, and we got it."
Teamsters General Secretary-Treasurer Fred Zuckerman said he has "never seen a national contract that levels the playing field for workers so dramatically as this one." The deal will put more "money in our members’ pockets and establishes a full range of new protections for them on the job."
The National Retail Federation is "grateful" that the two parties came to an agreement "without disruption to the marketplace," it said in a statement. "The timing of this agreement is critical for consumers and families during the peak back-to-school shopping season," the NRF said. "Retailers rely on stability within their supply chains, and this agreement will bring long-term stability, as well as assurance to the millions of businesses and employees who rely on smooth and efficient last-mile delivery."