UPS and Teamsters Union Tentative Deal, Potentially Avoiding Strike

The UPS and The International Brotherhood of Teamsters Union have reached a tentative deal on a new contract, likely avoiding a strike. 

Union employees are mixed on the deal and will vote on whether to approve it on August 3rd. If it is not approved, UPS workers will join Hollywood’s writers and actors as high-profile union workers on strike. 

Over 300,000 workers in the United States are currently on strike, the highest in four years. 

What’s in the Deal?

Under the yet-to-be-voted-on agreement between the UPS and Teamsters Union, the new contract would last five years, expiring in 2028. 

The new deal includes wage hikes for workers, increased safety and worker protection measures, and increased benefits.

All workers at UPS would receive a pay raise of $2.75 per hour this year, which will increase to $7.50 an hour by the time of the contract’s expiration. Part-time workers’ pay will increase to $21 an hour, a major step forward from the current $16.20 an hour. 

For safety, newly purchased vehicles will all feature air conditioning. In addition, workers will be protected from cameras in vehicles, and the usage of artificial intelligence and driverless vehicles taking jobs from human employees. 

The UPS will also be required to increase their contributions to workers' health, welfare, and pension plans. 

Other agreements include making Martin Luther King Jr. Day a paid holiday and creating new opportunities for part-time workers to transition to full-time. 

To read more details on the tentative agreement, click here. 

Reaction from Workers

While the tentative deal between UPS and The International Brotherhood of Teamsters Union has been agreed upon by both parties, it still needs to be voted on by union members to turn into actuality. 

Although Union leaders are praising the agreement as “the best contract in the history of UPS,” not all workers are convinced. A majority of UPS workers are part-time, and many are disappointed in the deal despite the raise. 

The union originally pushed for $25 an hour for part-time employees but then settled on $21, leaving many upset. 

In addition, the seemingly smaller victories such as air-conditioning in newly purchased vehicles will only affect a minority, as it doesn’t start until 2024 and many will still be driving older vehicles. 

Outside of UPS workers, many have praised the deal, including the Chamber of Commerce and President Joe Biden.

While the deal is expected to be approved by union members, we’ll make sure to update you if need be. 

Until then, keep up with BOMA on the Frontline for the latest news in the Greater Los Angeles area.