UPS Reaches Tentative Contract with 340,000 Teamsters

If the union did strike, it would disrupt package deliveries for millions of businesses and households nationwide, including direct-to-consumer shipments of wine, beer and distilled spirits.

Under the tentative agreement, which still needs union members’ approval, full- and part-time union workers will get $2.75 more per hour in 2023, and $7.50 more by the end of the five-year contract. The agreement also includes a provision to increase starting pay for part-time workers — whom the union says are the most at risk of exploitation — to $21 per hour from $16.20 per hour . The average pay for part-timers had been $20.

A lower-paid category of drivers who work shifts that include weekends will be eliminated, and the workers converted into regular full-time drivers. Under the agreement, the company will create 7,500 full-time jobs and fill 22,500 open positions, allowing more part-timers to transition to full-time.

“Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers,” Carol Tomé, UPS CEO, said in a written statement.

Voting on the new contract begins Aug. 3 and concludes Aug. 22.