UPS, Teamsters reach labor deal to avoid strike

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A United Parcel Service (UPS) driver pushes a dolly of packages toward a delivery van on a New York street.

Victor J. Blue | Bloomberg | Getty Images

UPS And the Teamsters union, which represents 340,000 workers at the package carrier, said Tuesday they have reached a preliminary labor agreement that includes raises for both full- and part-time workers and narrowly avoided a possible strike starting next week.

“Together we reached a win-win agreement on issues that matter to Teamsters leadership, our employees, and to UPS and our customers,” said UPS CEO Carol Toome. “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 remain competitive, serve our customers and keep our business strong.”

It was the latest in a series of labor deals where everyone from pilots to aerospace manufacturing workers has pushed for won high salary,

The union said that if the workers approve the new contract, existing part-time workers would earn a minimum of $21 an hour. Full-time employees will have an average wage of $49 an hour. It would also eliminate mandatory overtime on drivers’ vacation days, according to the contract outline provided by the Teamsters. UPS did not immediately confirm the potential new salary.

The tentative deal still faces a ratification vote by workers. The union could launch a major strike after July 31 if the two sides do not reach an agreement.

“The union is committed to winning this fight for our members. We asked for the best contract in UPS history, and we got it,” Teamsters General President Sean O’Brien said in a statement. “UPS has placed $30 billion in new funding on the table as a direct result of these negotiations.”

Some recent labor talks have not yielded deals. On Monday, pilot on UPS rival FedEx, A tentative labor agreement was rejected, with 57% voting against the agreement.