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UPS and Teamsters Reach Labor Agreement

July 25, 2023
UPS and the International Brotherhood of Teamsters have reached a tentative collective bargaining agreement, averting a strike the Teamsters had scheduled for August 1.

With a week to spare, parcel delivery giant UPS and the International Brotherhood of Teamsters, the union representing about 330,000 UPS employees in the U.S., have reached a tentative collective bargaining agreement, averting a strike the Teamsters had scheduled for August 1.

“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’s CEO, in a statement. 

“Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits. Teamster labor moves America. 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,” said.

“UPS has put $30 billion in new money on the table as a direct result of these negotiations, said Sean M. O’Brien, Teamsters’s general president, in a statement.

Some of the details in the 2023-2028 UPS Teamsters National Master Agreement include:

·       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 will 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% average total wage increase over the next five years.

·        Safety and health protections address 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.

·        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.

The National Retail Federation today issued the following statement from President and CEO.

“UPS is a major partner of the retail industry, and we are grateful it came to an agreement with the Teamsters without disruption to the marketplace,” said Matthew Shay, president and CEO of the National Retail Federation, in a statement. “The timing of this agreement is critical for consumers and families during the peak back-to-school shopping season. 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.”

The five-year agreement covers U.S. Teamsters-represented employees in small-package roles and is subject to voting and ratification by union members. Member voting begins August 3 and concludes August 22.

About the Author

Dave Blanchard | Senior Director of Content

During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

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