Labor unions all over America are demanding better working conditions, salary hikes pertaining to the growing inflation, and cooperation from the corporates. Within the past few months, Hollywood has encountered dual strikes after 60 years of – writers’ and actors’ strikes.
Now the United Parcel’s service UPS is challenged with new demands from the labor union Teamsters. UPS, founded in 1907, is the largest multinational shipping & receiving and supply chain management company. So, one can estimate the level of daily operations and the amount of resources deployed for the same.
After the uncertain times during Covid-19, the workers want a stable financial foundation to keep doing their strenuous jobs.
To avoid what could be one of the most intense workers’ strikes, UPS and Teamsters have agreed on a tentative deal on Tuesday.
What is the UPS New Union Contract?
The primary objective of the union is to increase the wages of the employees. Although not many details are disclosed from the tentative contract. Here are some highlights from the new union contract:
- Existing full-time and part-time UPS Teamsters will get $2.75 more per hour in 2023. Plus, they will either get $7.50 more per hour or more than $15,000 a year until the contract.
- The minimum wage for the existing part-time workers is as low as $15.50 an hour as the initial pay in some parts of the country. According to the new contract, the starting salary will be raised to no less than $21 per hour.
- The starting pay of the part-time workers would be increased to $23 an hour during the life of the contract.
As per the UPS corporate, the part-timers were averaging $20 per hour even before the deal. They were also getting additional benefits that most companies do not offer, such as pensions, premium-free health insurance, and tuition reimbursement.
The company is extremely worried if the strike happens. They are risking losing long-term customers from a short strike. Also, the cutthroat competition from FedEx could hamper UPS’s turnover.
Industry experts have estimated that UPS might retrieve only 70% of its regular business if the strike happens.
How Big Was the Teamsters Union?
As mentioned earlier, UPS is one of the biggest logistics companies, spread all across the country. As a result, UPS also has the biggest unionized workforce among any company in the US.
The International Brotherhood of Teamsters is a union of more than 340000 full-time and part-time workers, including drivers.
Even one no-confidence vote in the new contract could trigger the largest workers’ strike. Hence, the ratification process for the contract will take more than three weeks.
Did UPS & Teamsters Reach an Agreement?
UPS and Teamsters have agreed on the tentative contract, sealed on July 25.
Teamsters President Sean O’Brien, in a statement–
“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.”
“This contract sets a new standard in the labor movement and raises the bar for all workers.”
UPS CEO Carol Tomé issued a statement–
“Together, we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers.”
“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.”
A part-time UPS worker Ryan Boyd said at a Teamsters union hall in Philadelphia on Tuesday–
“It’s very hopeful,”
“I think if the tentative agreement is consistent with the terms The Teamsters have laid out over the last few months then I think this is really going be a historic agreement that is beneficial not just for UPS workers but workers in the industry and workers in general.”
Even President Joe Biden has agreed with the tentative contract, stating–
“This agreement is a testament to the power of employers and employees coming together to work out their differences at the bargaining table in a manner that helps businesses succeed while helping workers secure pay and benefits they can raise a family on and retire with dignity and respect.”
Although the Biden administration is in no way involved with the UPS union deal. Acting Labor Secretary Julie Su clarified with CNN Tuesday that the president did not intervene in the negotiations. In an interview with CNN, she said, “No, the parties make this agreement on their own– and I think that’s an important thing.”
Regardless, it’s a win for the most significant labor union in the country. Hopefully, other companies will improve the working conditions for their labors too.
What are your thoughts on this deal? Do you agree with the union’s demands? Let us know in the comments section below.
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