UPS reaches deal with Teamsters union to avoid massive strike

• UPS on Tuesday made a tentative agreement with the Teamsters union, avoiding a humongous strike.
• The union represents about 340,000 UPS package handlers and delivery drivers.

UPS on Tuesday reached a tentative agreement with the Teamsters union, avoiding a massive strike by its roughly 340,000 unionized workers, which could have had broad economic effects.

"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," UPS CEO Carol Tomé said in a press release.

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

The tentative agreement sets a new minimum wage for part-time UPS workers of $21 an hour. Full-time workers will be paid an average top rate of $49 an hour, making them the "highest paid delivery drivers in the nation," the union said.

Under the agreement, UPS will no longer schedule mandatory overtime shifts during Teamster drivers' days off. Workers will also receive Martin Luther King Jr. Day as a full holiday for the first time, the union said.

The deal also includes safety and health protections to protect drivers from extreme heat. With the agreement, all new delivery vehicles will be equipped in-cab air conditioning beginning in 2024.

The union had threatened to strike starting July 31 if no contract was reached. Tuesday's announcement came just hours after the two sides returned to the bargaining table following weeks of on-again, off-again negotiations.

Member voting to ratify the contract begins August 3 and concludes August 22.