With the threat of a strike looming at the end of July 2023, UPS and Teamsters, the union representing 340,000 UPS workers, reached a tentative agreement on a new contract. This development came as a relief to online retailers and consumers who heavily rely on UPS for their shipping needs. This deal, which was approved on August 2023, averted what could have been a catastrophic strike that would have impacted supply chains across the United States during the holiday season.
If the strike by UPS workers went through, any disruption to UPS operations would have far-reaching consequences that could have resulted in supply chain problems similar to those experienced during the pandemic. Luckily, a tentative agreement between the two parties has been reached.
The goal of the looming strike was to help improve the working conditions and benefits for UPS employees, and the historic tentative agreement will do just that. Though specific details of the agreement are yet to be made public, some key highlights have been shared:
Hailed by the Teamsters as "historic" and "overwhelmingly lucrative," it is reported that the agreement includes higher wages for full-time and part-time UPS employees. Part-time workers, who make up a large portion of the UPS workforce, will see an immediate pay bump, with starting pay increasing to $21 per hour. Existing full-time workers will also receive substantial hourly raises.
The agreement includes numerous workplace protections and improvements, ensuring better working conditions for UPS workers. Working conditions were one of the key issues in UPS contract talks. At least 143 UPS employees were hospitalized for heat injuries between 2015 and 2022, according to the UPS Occupational Safety and Health Administration records obtained by the Washington Post. Therefore, one of the notable provisions in the tentative agreement is the commitment from UPS to add air conditioning to delivery vehicles purchased starting next year.
To meet the demands of its growing operations, UPS has committed to adding 7,500 union jobs and filling 22,500 open positions. This move addresses the need for additional workers and provides employment opportunities for union members.
While the tentative agreement is a significant step forward, it is subject to ratification by the union members. The process of ratification is expected to take approximately 3 weeks. In the meantime, UPS operations will continue under the current contract.
The agreement between UPS and Teamsters will set a new standard in the labor movement. It raises the bar for workers’ rights and wages, potentially influencing future negotiations and contracts in the industry.
The UPS-Teamsters agreement brings stability and reassurance to online retailers who rely on UPS for their shipping and logistics needs. With the agreement in place, online retailers can rest easy knowing that their shipping service of choice is not getting disrupted.
As the ratification process unfolds, UPS will continue to work as usual, allowing both UPS and the Teamsters to continue working towards an outcome that makes them both happy.