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UPS, Teamsters reach labor deal to avoid strike

The deal includes wage increases for both full- and part-time workers.

CNBC|Leslie Josephs

Existing part-time workers will make a minimum of $21 an hour, if workers approve the new contract, the union said. Full-time workers will average $49 an hour. It would also end mandatory overtime on drivers' days off, according to an outline of the contract provided by the Teamsters. UPS didn't immediately confirm the potential new wages. The tentative deal still faces a ratification vote by workers.

“We’ve Changed the Game”: Teamsters Win Historic UPS Contract

(WASHINGTON) – Today, the Teamsters reached the most historic tentative agreement for workers in the history of UPS, protecting and rewardin

International Brotherhood of Teamsters|Kara Deniz

Highlights of the tentative 2023-2028 UPS Teamsters National Master Agreement include: - 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. - 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 would still 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 percent average total wage increase over the next five years. - 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. - Current UPS Teamsters working part-time would receive longevity wage increases of up to $1.50 per hour on top of new hourly raises, compounding their earnings. - New part-time hires at UPS would start at $21 per hour and advance to $23 per hour. - All UPS Teamster drivers classified as 22.4s would be reclassified immediately to Regular Package Car Drivers and placed into seniority, ending the unfair two-tier wage system at UPS. - Safety and health protections, including 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. - All UPS Teamsters would receive Martin Luther King Day as a full holiday for the first time. - No more forced overtime on Teamster drivers’ days off. Drivers would keep one of two workweek schedules and could not be forced into overtime on scheduled off-days. - UPS Teamster part-timers will have priority to perform all seasonal support work using their own vehicles with a locked-in eight-hour guarantee. For the first time, seasonal work will be contained to five weeks only from November-December. - 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. - More than 60 total changes and improvements to the National Master Agreement — more than any other time in Teamsters history — and zero concessions from the rank-and-file.