Last week it was announced that UPS and the Teamsters had agreed to a tentative 5-year union contract that would avert a strike, most likely starting August 1, 2023.  The Teamsters represent approximately 340,000 UPS workers, which is the world’s largest package delivery firm.  If a strike was not averted, it was estimated that that it could have been one of the costliest strikes in the last century, with billions lost in wages to employees and business revenue lost for UPS.  Last week the union and UPS came to a tentative agreement which means the union and the company tentatively agreed to the terms of the new contract.  The proposed contract has to still be voted on and ratified by the union membership, but that will most likely take until the end of August 2023, and it is thought that the contract will be ratified. 

From what has been reported, the primary highlights of the new contract are as follows:

1. It is a five (5) year contract.
2. New delivery trucks would have air conditioning units installed in them—this does not include trucks already in service.
3. All UPS employees would receive a $2.75-an-hour raise this year and a $7.50-an-hour pay increase over the next five years.
4. Pay for UPS part-time workers, which was a big issue during negotiations (part-time workers make up approximately half of UPS’s workforce), would start at $21.00 per hour.
5. The establishment of Martin Luther King Jr. Day as a paid holiday for all workers.
6. Ban on both driver-facing cameras in truck cabs and the elimination of forced overtime on drivers scheduled days off.
7. The establishment of 7,500 new full-time union positions at UPS.

UPS officials rejected the union’s claims that part time employees were underpaid, saying that that part-time employees make an average of $20.00 an hour after their first 30 days, they receive annual raises, and have health and pension benefits that are more and more rare in the private sector. . 

From an outsider looking in, it seemed like this was a situation where neither side wanted a strike, which can be very stressful on individual employees and on the bottom line for the company.   Even though most commentators seem to think this is a done deal, we will have to wait to see if the contract is ratified and the ink dries on the newly signed contract to see all the particulars of what the agreement says.

Wessels Sherman PC works in all phases of labor law and would be privileged to help your company with any labor issues that you may have.

Questions? Contact attorney Joseph Laverty at (563) 333-3102 or by email