"Game-Changing Win for Workers": Teamsters Secure Historic Contract with UPS

July 25, 2023
3 mins

Teamsters have successfully negotiated a landmark agreement for UPS employees, an agreement that safeguards and rewards over 340,000 UPS Teamsters across the United States. This groundbreaking contract brings significant wage increases, additional full-time jobs, and a host of workplace improvements and protections. The UPS Teamsters National Negotiating Committee unanimously backed this five-year tentative contract.

“Our dedicated UPS Teamsters played a pivotal role in getting this country through the pandemic and were instrumental in UPS achieving record-breaking profits. Our union members' contributions are essential to America's progress," said Sean M. O'Brien, General President of Teamsters. "UPS's commitment to $30 billion in new funding is a direct outcome of these negotiations. We've revolutionized the conversation and tirelessly fought for an agreement that offers fair wages, recognizes their hard work, and demands no compromises. This contract elevates the labor movement's standards and sets new expectations for all workers.”

The new contract ensures a plethora of benefits, including:

  • Significant wage increases: Existing full- and part-time UPS Teamsters will receive an additional $2.75 per hour in 2023, and a total increase of $7.50 per hour over the contract period.
  • A minimum of $21 per hour for all current part-time employees, with seniority workers earning even more under a market rate adjustment.
  • Doubled general wage increases for part-time workers compared to the previous UPS Teamsters contract, with current part-time employees seeing an average total wage increase of 48% over the next five years.
  • The highest wages in the nation for delivery drivers, with UPS Teamsters' average top rate improving to $49 per hour.
  • Longevity wage increases for part-timers on top of hourly raises.
  • $21 per hour for new part-time hires, which increases to $23 per hour.
  • Re-classification of all UPS Teamster drivers as Regular Package Car Drivers, ending the unequal two-tier wage system.
  • In-cab air conditioning for all larger delivery vehicles, sprinter vans, and package cars purchased after Jan. 1, 2024.
  • Martin Luther King Day recognized as a full holiday for the first time.
  • No more forced overtime for drivers on their days off.
  • Priority for part-time UPS Teamsters to perform all seasonal support work with their own vehicles with an eight-hour guarantee.
  • 7,500 new full-time positions and filling of 22,500 open positions, offering more opportunities for part-timers to transition to full-time work.
  • Over 60 modifications and enhancements to the National Master Agreement, and no concessions from the rank-and-file.

The agreement awaits the vote of representatives from the 176 UPS Teamster locals in the U.S. and Puerto Rico on July 31. Voting for rank-and-file members begins on August 3 and concludes on August 22.

The UPS Teamsters National Master Agreement stands as the most comprehensive private-sector collective bargaining agreement in North America, further underscoring its significance.

The Teamsters Union, founded in 1903, represents 1.2 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more details and follow us on Twitter @Teamsters and on Facebook at Facebook.com/teamsters.

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