UPS union calls off strike threat after securing pay raises for workers – Gist It

UPS union calls off strike threat after securing pay raises for workers

The Teamsters union has cancelled a strike threat after reaching a pay agreement with UPS, preventing one of the largest strikes in U.S. history.

Dispute and resolution: The Teamsters union has secured pay raises for UPS workers, following a stand-off over pay for part-time workers which threatened to devolve into a significant strike.
* Under a tentative five-year agreement, existing full and part-time UPS workers will earn $2.75 more per hour in 2023, and $7.50 more per hour over the contract term.
* Wages for existing part-timers will be raised to no less than $21 per hour, effective immediately.
* Part-time hires at UPS will start at $21 per hour and advance to $23 per hour.
* Union members will need to ratify the new contract in August.

Underlying Issues: Before reaching the agreement, negotiations were slowed over wages for part-time workers, making up more than half of the unionized workforce at UPS.
* The union argued the company could afford to increase pay for part-time employees, given UPS posted a record profit last year, reaching $100 billion in revenue for the first time.
* Issues of wages and benefits for part-time workers remained unresolved until days before a potential strike.

Consequences of a potential strike: If the strike had taken place, it would not only have affected UPS, but also the wider U.S. economy.
* The last walkout at UPS in 1997 lasted 15 days and cost the company $850 million.
* This year’s strike could have disrupted package deliveries for millions of customers and cost the U.S. economy more than $7 billion, according to economic estimates.
* Main competitors — FedEx, Amazon, and the United States Postal Service — would not have been able to accommodate all the volume left behind during a UPS strike.

View original article on NPR

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July 25, 2023

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