UPS, Teamsters reach tentative agreement

United Parcel Service (UPS) and the International Brotherhood of Teamsters, which represents about 330,000 UPS employees in the United States, announced yesterday they reached a tentative labor agreement.

The five-year contract, which would expire in 2028, would cover U.S. Teamsters-represented employees in small-package roles. UPS is the Class Is' largest intermodal customer.

The agreement — which is subject to ratification by union members — is unanimously endorsed by the UPS Teamsters National Negotiating Committee.

According to a Teamsters press release, the contract includes:

• "historic" wage increases of $2.75 per hour for existing full- and part-time union members. Wages will increase a total $7.50 per hour over the length of the contract;
• immediate existing part-time worker base wage increases to at least $21 per hour, with all seniority workers receiving new general wage increases under a market rate adjustment;
• safety and health protections, including vehicle air conditioning and cargo ventilation to be equipped in all large delivery vehicles, sprinter vans and package cars purchased beginning in 2024;
• no more forced overtime on scheduled off days; and
• the creation of 7,500 full-time union jobs at UPS and the fulfillment of 22,500 open positions, establishing more opportunities for part-time workers to transition to full-time work.

"This contract sets a new standard in the labor movement and raises the bar for all workers," said Teamsters General President Sean O'Brien.

Representatives of the 176 UPS Teamster locals in the United States, including Puerto Rico, will meet July 31 to review and recommend the tentative agreement, Teamsters officials said. Members will vote Aug. 3-22.

"News of a tentative UPS-Teamsters contract agreement is an enormous relief to retailers, who have been navigating the possibility of a strike and the associated uncertainty for weeks. With a work stoppage now taken out of the equation, retail supply chains can continue firing on all cylinders to deliver for consumers across the country," said Retail Industry Leaders Association officials in a statement.