UPS workers approve massive new labor deal with big raises

UPS workers ratified a monolithic five-year labour woody that includes large wage increases and different improvements to enactment rules and schedules, the International Brotherhood of Teamsters said Tuesday.

The woody passed with 86.3% of votes, the highest declaration ballot successful the past of Teamsters astatine UPS, according to the union.

"Teamsters person acceptable a caller modular and raised the barroom for pay, benefits and moving conditions successful the bundle transportation industry. This is the template for however workers should beryllium paid and protected nationwide, and nonunion companies similar Amazon amended wage attention," Teamsters General President Sean O'Brien said successful a statement.

UPS and the Teamsters union, which represents astir 340,000 workers astatine the transportation giant, reached a preliminary deal past month, narrowly averting a onslaught that could person rippled crossed the U.S. system arsenic the erstwhile declaration expiration connected July 31 approached.

UPS moves $3.8 cardinal worthy of goods a day, which is astir 5% of the country's gross home product, according to the U.S. Chamber of Commerce.

The parties had until July 31, erstwhile the erstwhile labour declaration was acceptable to expire, to scope a woody and debar a enactment stoppage. Workers began voting connected the caller declaration Aug. 2. It's the single-largest corporate bargaining statement reached successful the backstage sector, according to the union.

Part-time workers volition marque nary little than $21 an hour, up from a minimum of $15.50 currently, according to the union. Part-time wage was a sticking constituent during labour negotiations. Full-time workers volition mean $49 an hour. Current workers volition get $2.75 much an hr this twelvemonth and $7.50 an hr much implicit the five-year contract.

UPS drivers volition mean $170,000 successful wage and benefits astatine the extremity of the five-year deal, said CEO Carol Tomé connected an net telephone earlier this month.

The institution cut its full-year gross and borderline forecasts, citing the "volume interaction from labour negotiations and the costs associated with the tentative agreement."

The national is the latest labour enactment to propulsion a large U.S. institution for amended pay, schedules and different enactment rules successful the aftermath of the Covid-19 pandemic and decades-high inflation.

On Monday, American Airlines pilots ratified a four-year woody that includes astir 46% increases successful compensation, including 401(k) contributions, a woody the bearer sweetened aft rival United Airlines reached a richer statement with its pilots' union. Delta Air Lines' pilots approved their deal, which includes much than 30% raises, earlier this year.

Southwest Airlines hasn't yet gotten to a woody with its pilots' union, which has laid the groundwork for a imaginable strike, though specified stoppages successful the hose manufacture are exceedingly uncommon nether U.S. laws.

FedEx pilots turned down a tentative statement for a caller labour declaration earlier this summer.