UPS and Teamsters Reach Tentative Agreement on Five-Year Contract with “Overwhelmingly Lucrative” Raises for Workers

UPS and the International Brotherhood of Teamsters have reached a tentative agreement on working conditions for the 340,000 unionized employees at the shipping giant, both parties announced Tuesday. The five-year deal still needs to be ratified by members, but the union said its negotiating committee had “unanimously endorsed” the proposed contract, adding that it includes “overwhelmingly lucrative” raises for workers.

The Teamsters called the five-year contract “overwhelmingly lucrative,” adding that it “raises wages for all workers, creates more full-time jobs, and includes dozens of workplace protections and improvements.” The new contract raises starting pay for part-timers to $21 an hour, up from the current contracted pay of $15.50, and includes catch-up raises for longtime workers.

“We demanded the best contract in the history of UPS, and we got it,” Teamsters President Sean O’Brien said in a statement. “UPS has put $30 billion in new money on the table as a direct result of these negotiations.”

The contract, if ratified, would avert a strike that was shaping up to be the biggest in 60 years. The agreement is seen as a major victory for the union, which has been pushing for better wages and working conditions for its members.

The agreement is now subject to a ratification vote by the union’s members. If approved, the new contract will go into effect on July 1, 2021. The Teamsters have urged its members to vote in favor of the contract, saying it is the best deal they could have negotiated.