The Teamsters union successfully negotiated pay raises for UPS workers, preventing a potential large-scale strike.
Teamsters general president announced that UPS offered $30 billion in new funding during the negotiations.
Existing full and part-time UPS Teamsters will see significant pay raises under the tentative five-year agreement.
Wages will increase by $2.75 per hour in 2023 and $7.50 per hour throughout the contract.
The contract must now be ratified in August by union members from across the country before becoming official.
The contract negotiations faced challenges concerning pay for part-time workers, but the agreement was ultimately a win-win.
Newly hired part-time employees at UPS will begin with an hourly wage of $21 and gradually progress to $23 per hour
UPS CEO Carol Tomé expressed satisfaction with the agreement, highlighting its benefits for employees and the company's continued competitiveness.
The resolution came just in time, preventing a potential nationwide UPS strike that could have cost the U.S. economy an estimated $7 billion.