UPS and the International Brotherhood of Teamsters have announced a tentative five-year agreement, effectively avoiding a strike that could have caused significant disruptions to delivery services. The negotiations between UPS and its union members, which include major customer Amazon, broke down earlier this month due to disagreements over wages and benefits for part-time employees. However, both parties came to an agreement to resume talks and aimed to reach a deal before the current contract expires on August 1. The tentative agreement, which covers approximately 340,000 UPS union members, is still subject to voting and ratification by the members. A meeting is set for July 31 where the members will review and recommend the deal. Member voting will then take place from August 3 to August 22.
While this tentative agreement is a significant step, it still needs to be ratified by the union members. Comparisons have been made to the recent failure of talks between rival company FedEx and the FedEx Air Line Pilots Association, where FedEx pilots rejected a tentative contract by a slim margin. The FedEx APLA chair, Captain Chris Norman, stated that they will regroup, prepare for the next steps, and establish a timeline for assessing the pilot group’s priorities. The National Mediation Board is expected to hold a status conference with both parties, although there is no set timeline for this yet. FedEx expressed disappointment but reaffirmed their commitment to continue bargaining in good faith.
The tentative agreement between UPS and the Teamsters includes wage increases for all workers, an increase in full-time job opportunities, and the implementation of numerous workplace protections and improvements. The Teamsters’ General President, Sean M. O’Brien, stated that they demanded the best contract and ultimately achieved it, with UPS offering $30 billion in new funds as a result of the negotiations. The agreement specifically applies to Teamsters union employees in small-package roles and, similar to UPS, is also subject to voting and ratification by the union members. UPS CEO Carol Tomé expressed satisfaction with the agreement, describing it as a win-win-win situation for Teamsters leadership, UPS employees, customers, and the company as a whole. Tomé emphasized that the agreement rewards UPS employees with competitive pay and benefits while allowing the company to maintain its competitive edge, serve customers effectively, and remain strong in the business landscape.