The Teamsters Union, which represents some 250,000 workers at the United Parcel Service (UPS), recently reached a tentative labor deal that could avert a potentially difficult strike. The four-year deal that provides pay raises, improved benefits and increased job security is expected to be formally approved by workers on February 24.
The agreement between the Teamsters and UPS comes just ahead of their contract expiration, which was set for March 31. The union had been threatening to strike if the company was unwilling to make concessions in wages and benefits.
The deal includes a $4.10 per hour pay raise spread out over the life of the contract, as well as an additional $1.50 per hour (up from $1.50 per hour) for part-time employees. There are also increased contributions to the Teamster retirement plan, as well as increased job security with UPS agreeing to limit subcontracting and the outsourcing of jobs to third-party companies.
While the agreement is expected to avert a strike, the terms of the deal have divided Teamster members. According to the Wall Street Journal, some feel the deal does not provide enough job security for drivers and part-timers, while others are more confident in the company’s ability to hold up its end of the agreement.
UPS is the world’s largest package delivery company, and a strike would likely have disrupted the company’s services in a major way. With the deal, UPS can now focus on continuing to expand its services and staying competitive in an increasingly digital marketplace.
The agreement also shows that the Teamsters were successful in pressing for improved wages and benefits for its members. The vote on the deal will be an important milestone in the labor union’s history, and should set the tone for labor negotiations going forward.
