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UPS says it will hire 100,000 seasonal workers for the holiday rush — but don't expect that $170,000 pay package

Sep 27, 2023, 04:49 IST
Business Insider
UPS said it will hire 100,000 seasonal workers for the holiday rush.Scott Olson / Getty Images
  • UPS plans on hiring 100,000 seasonal workers to beef up its workforce for the holiday season.
  • Pay rates for these roles will be higher than last year thanks to a new labor contract.
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Summer may have just ended, but it's almost the most wonderful time of the year, and to plan for the rapidly approaching holiday season, UPS, one of the hottest companies to work for, is beefing up its workforce.

The company announced it will hire more than 100,000 seasonal employees for the rush, and some applicants can land a job in less than 20 minutes with no interview required.

Thanks to a new contract for UPS workers that was negotiated by the Teamsters union, some full-time UPS drivers are now earning a pay package worth $170,000 a year, including benefits.

While this salary is only applicable to full-time drivers and takes years to achieve, those who are hired during the holiday rush will still receive higher pay compared to last year. Hourly pay will start at $23 for seasonal package drivers and $21 for package handlers.

That compares with last year's $21 per hour for drivers and $15.50 for package handlers, according to Matt Lavery, UPS's director of global sourcing, recruiting and onboarding.

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Despite increased pay for the seasonal UPS workers, the job market is still tight, and it's uncertain how challenging it will be to find workers, Lavery said.

"We do have a good package to offer everybody with an industry-leading pay, but we still haven't seen those (job) numbers change," he said. "So we're hoping and we believe that we are going to get the number of employees. It's a little uncertain whether it's going to be easier or not for us at this point."

America's employers added 187,000 jobs in August, evidence of a slowing but still-resilient labor market despite the high interest rates the Federal Reserve has imposed. Last month, the unemployment rate rose from 3.5% to 3.8%, the highest level since February 2022 though still low by historical standards.

Lavery said that though the rising cost of living will entice people to look for extra jobs during the holidays, UPS is also facing other headwinds. Among them: a shortage of younger people who have drivers' licenses, making it harder to fill UPS driver slots. The trend began with millennials but has become more acute with Gen Z as they increasingly turn to ride-share apps like Uber to get around. Lavery said it's particularly difficult in metropolitan areas that have strong public transportation systems.

Holiday season volumes at UPS usually start going up in October and remain high into January. While online shopping has slowed from the height of the pandemic, Lavery said shipping volumes are expected to build later in the season to double of what would be expected on a normal day.

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UPS promotes seasonal jobs as positions that can lead to year-round employment. Nearly 50,000 seasonal employees have earned permanent positions over the past two years, UPS said.

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