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News August 22, 2023

UPS Workers Ratify New Contract, Ending Strike Threat

Union leaders had previously approved the agreement with United Parcel Service, but it remained tentative until rank-and-file members voted in favor of it.

By  Christopher Ruvo

The UPS strike threat and its potentially disastrous fallout for the promotional products industry and the U.S. economy more broadly appears to finally be over.

UPS drivers and logistics workers that belong to the Teamsters Union have voted overwhelmingly to ratify a new five-year contract with their employer, United Parcel Service, the largest package delivery company in the world.

Nearly 9-in-10 (86.3%) rank-and-file union members approved the deal. Teamsters leadership noted that the agreement passed by the highest vote for a contract in the history of the Teamsters at UPS.

The UPS Teamsters National Negotiating Committee, which directly locked horns with UPS leaders, as well as representatives of UPS Teamster locals in the U.S. and Puerto Rico, had previously endorsed the contract. Nonetheless, it remained tentative until rank-and-file members gave their blessing. Voting among the boots-on-the-ground workers occurred throughout August in the lead-up to the Tuesday, Aug. 22 ratification announcement.

“Our members just ratified the most lucrative agreement the Teamsters have ever negotiated at UPS. This contract will improve the lives of hundreds of thousands of workers,” said Teamsters General President Sean M. O’Brien. “Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry. This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.”

Analysts say the deal means the approximately 340,000 UPS workers won’t be taking to the picket lines for a strike that, if it would have occurred, might have cost the United States economy $7 billion if it lasted just 10 days, according to one estimate.

A work stoppage could have had negative impacts on promo – from potential delivery disruptions and delays, to higher costs for those shipments. Before the tentative deal was announced, promo firms were making contingency plans. Promo leaders have said avoiding a UPS strike is a huge positive for the industry and its customers.

Still, the Teamsters approval wasn’t a complete slam dunk.

The union noted there are 44 supplements to the national master agreement. All of those were approved except for the Local 769 LAI supplement, which covers 174 members in Florida. The new national master deal will go into effect as soon as the supplement is ratified. A timeline wasn’t provided for that but according to the union the “UPS Teamsters National Negotiating Committee will immediately meet with the company to work to resolve any outstanding issues with the supplement. Upon resolution, the adjusted supplement would be voted on by respective UPS Teamsters in-person in their area.”

The UPS Teamsters National Master Agreement is the single largest private-sector collective bargaining agreement in North America. It includes:

  • Historic wage increases. 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. New part-time hires at UPS would start at $21 per hour and advance to $23 per hour.
  • Wage increases for full-timers will keep UPS Teamsters the highest paid delivery drivers in the nation, improving their average top rate to $49 per hour.
  • Enhanced safety and health protections, including vehicle air conditioning and cargo ventilation. UPS will equip in-cab air conditioning 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.

All UPS Teamsters receive Martin Luther King Day as a full holiday for the first time.