After getting pay raises for workers, the UPS union drops its plan to go on strike.

 After averting what would have been the greatest strike in U.S. history, the Teamsters union announced that it had successfully negotiated pay rises for United Parcel Service employees.

"UPS has put $30 billion in new money on the table as a direct result of these negotiations," said Teamsters general president Sean O'Brien in a statement. "This agreement raises the bar for all workers and establishes a new norm in the labor movement."

The proposed five-year agreement calls for a $2.75 raise in hourly pay for current full- and part-time UPS Teamsters in 2023, and a $7.50 raise for the duration of the contract. According to a statement released by the Teamsters, the minimum wage for current part-time employees has been increased to $21.

Source: npr

UPS's starting hourly wage for new part-time employees is $21, increasing to $23 per hour.

On July 31, the current collective bargaining agreement will have served its full five years. About 340,000 UPS employees are included in the contract, making it the largest private sector contract in North America. If the firm and the union were unable to reach an agreement on a new contract by the end of the month, local chapters of the Teamsters have been holding practice pickets in recent weeks.

In August, union members all throughout the country will vote on whether or not to officially approve the new contract.

Part-time employees' compensation was at the center of the dispute.

Part-time workers' pay, which account for more than half of UPS's unionized staff, became a stumbling block in contract discussions at the beginning of July. UPS' economic proposal was initially rejected by the union because they felt the firm could afford to pay their part-time workers more.

In 2022, UPS's revenue topped $100 billion, resulting in the company's highest-ever profit margin.

"Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees, and UPS and our customers," said UPS CEO Carol Tomé in a statement on Tuesday. "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."

Concessions on job safety had previously been gained by the union.

UPS said that its median employee earned $52,000 in compensation in 2017. Tomé made close to $19 million, or 364 times as much.After 30 days on the job, the corporation claims part-time union workers earn an average of $20 per hour. The union, however, denies these allegations.

Since contract negotiations began in April, the union has achieved important victories on salaries and worker safety. UPS made several concessions, including installing air conditioning in all new delivery vans and ending mandatory overtime and a two-tier pay scheme for drivers.

Part-time workers' pay and benefits were a stumbling block for weeks leading up to a prospective strike, and no agreement was reached until the last few days.

The previous nationwide UPS walkout lasted 15 days and cost $850 million in 1997. Millions of Americans rely on package delivery services, and a strike this year would have caused major delays. Economic assessments put the potential damage to the U.S. economy at around $7 billion.

UPS's primary rivals, such as FedEx, Amazon, and the United States Postal Service, would not have been able to pick up all the slack in volume during a UPS strike. In 2022, UPS delivered 24.3 million shipments daily on average.

A Teamsters spokesman called UPS's preparation of management staff to intervene during the strike a "insult" to unionized workers earlier in July.

Thousands of workers in several industries, from Hollywood to the hospitality industry, have gone on strike in recent weeks, including UPS.

Content Source: https://www.npr.org/2023/07/25/1189956641/ups-union-calls-off-strike-threat-after-securing-pay-raises-for-workers