Teamsters Reach Deal with UPS to Tentatively Avert a Nationwide Strike


UPS and the Teamsters Union have agreed on a new contract to avert a strike.

We previously reported on More Than Shipping that a nationwide UPS strike was looking more likely, after talks fell apart last week. However, as the old saying goes “it’s always darkest before dawn” and often when negotiations fall apart, a deal is finally possible. That materialized this week with yesterday’s announcement that UPS has reached a tentative agreement with the Teamsters Union, a 340,000 member union, to avert a strike.

Like many developments in logistics and the supply chain, a nationwide UPS strike would have had far-ranging consequences for the U.S. economy by delaying and disrupting the delivery of millions of packages to both businesses and homes.

The agreement was made possible by the fact that, as we previously reported, many areas of the contract negotiations were already set in stone. The big difference between the two sides was pay for part-time workers, which many UPS employees are.

Both parties are sounding happy about the terms of the new agreement.

Although members will need to formally approve the agreement before it becomes binding, Teamsters President Sean O’Brien is sounding a very positive tone, saying the deal has “set a new standard in the labor movement.” At the same time, UPS CEO Carol Tomé said: “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.” With both sides sounding a very positive note, the agreement is basically set in stone at this point.

So, what’s in the new agreement between UPS and its workers?

  • Full and part-time workers receive a $2.75 per hour pay increase in 2023
  • Full and part-time workers will receive a $7.50 per hour pay increase by the end of the contract, over time
  • Starting pay for part-time UPS workers will increase to $21.00 per hour from the current $16.20 level.
  • Martin Luther King Jr. Day, in January, will be a full holiday and workers won’t have to deliver packages.
  • Cooling systems and measures will be rolled out to more trucks within the UPS fleet.

If a nationwide strike had not been averted, it would have been very disruptive for the U.S. economy and the average citizen, among other parties.