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Shipping Conglomerate Reaches Agreement with Union, Avoids Strike

Teamsters employed by UPS hold a union rally outside a UPS facility as an August 1st strike deadline against the company nears in Los Angeles, California, U.S. July 19, 2023.

BNR – After reaching common ground, the shipping behemoth UPS avoided a union strike. It represents the majority of the company’s staff.

The union said the agreement would “set a new standard” for all delivery workers, granting raises, more full-time jobs and “dozens” of new workplace improvements and protections.

UPS and Union Negotiate ‘Win-Win-Win’ Deal

The union stated that the deal established a satisfying standard for all shipping employees. Furthermore, it will provide bonuses and create full-time job opportunities. The standard also includes an array of enhancements and safeguards for the work environment and sets a minimum wage of $21/hour for new part-time employees.

The shipping company called the deal a “win-win-win” situation.

UPS CEO, Carole Tomé, stated that the deal would keep on rewarding UPS employees with high salaries and bonuses.

The shipping conglomerate has the largest workers’ union among all companies in the United States. The International Brotherhood of Teamsters union represents over 300,000 workers, both full-time and part-time.

Disruption in US Economy Averted

A major disruption in the US economy could have occurred if a strike had erupted, as the shipping company operates nearly 25% of the country’s shipment load. The union held many experimental strikes in the last few weeks to pressure UPS after discussions were futile.

“We demanded the best contract in the history of UPS, and we got it,” said Teamster General President Sean O’Brien. “This contract sets a new standard in the labour movement and raises the bar for all workers.”

The union stated that the current member employees will receive $2.75 more an hour this year. Furthermore, they will receive $7.5 more an hour over a five-year contract with the company.

It stated that the wage for current part-time employees would increase by nearly 48% by 2028. The union said that the company will also stop asking drivers to work extra hours on off days. The shipping company will also ensure there is an air conditioner in every big delivery truck.


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