The United Parcel Service has announced that it had reached a tentative collective bargaining agreement with the International Brotherhood of Teamsters, which represents about 330,000 UPS employees in the United States.
The five-year agreement covers U.S. Teamsters-represented employees in small-package roles. It is subject to a vote and ratification by union members. It provides for higher pay for full and part-time workers and changes in work rules, including to mandatory overtime requirements, and standards.
“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,” said Carol Tomé, UPS CEO, in announcing the settlement. “This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.”
The Teamsters had a different perspective on the agreement.
“Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits,” said Teamsters general president Sean O’Brien. “Teamster labor moves America. The union went into this fight committed to winning for our members. We demanded the best contract in the history of UPS, and we got it. UPS has put $30 billion in new money on the table as a direct result of these negotiations. We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession. This contract sets a new standard in the labor movement and raises the bar for all workers.”
The National Retail Federation, which had issued cautions about the economic and sector effects of a UPS strike, responded to the agreement, with president and CEO Matthew Shay, saying, “UPS is a major partner of the retail industry, and we are grateful it came to an agreement with the Teamsters without disruption to the marketplace. The timing of this agreement is critical for consumers and families during the peak back-to-school shopping season. Retailers rely on stability within their supply chains, and this agreement will bring long-term stability, as well as assurance to the millions of businesses and employees who rely on smooth and efficient last-mile delivery.”
