UPS and Teamsters Reach Historic $30 Billion Labor Deal, Avoiding Imminent Strike

In a groundbreaking development, UPS and the Teamsters Union have successfully reached a preliminary labor agreement worth a staggering $30 billion. The deal comes just in the nick of time, narrowly averting a potential strike that could have had far-reaching consequences on the supply chain and the US economy as a whole. This milestone marks yet another victory in the ongoing wave of labor negotiations where workers have been demanding and securing higher wages.

The Teamsters General President, Sean O’Brien, expressed immense satisfaction with the outcome, stating that the union’s unwavering commitment to its members had paid off. “We demanded the best contract in the history of UPS, and we got it,” said O’Brien.

The agreement promises substantial raises for both full-time and part-time workers. Existing part-time workers are set to receive a raise, ensuring a minimum hourly wage of $21, contingent upon worker approval. Meanwhile, full-time workers will enjoy an average hourly wage of $49. Additionally, current workers will witness an immediate raise of $2.75 per hour this year, followed by a further increment of $7.50 per hour over the five-year contract duration.

Crucially, the new deal puts an end to mandatory overtime for drivers on their days off, a critical concern addressed by the Teamsters during negotiations.

UPS CEO Carol Tomé commended the agreement, emphasizing that it strikes a balance that benefits all parties involved. “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,” Tomé remarked.

However, before the deal is fully implemented, it needs to be ratified by approximately 340,000 UPS Teamsters. If approved, the contract will bring significant relief to the retail industry, with the National Retail Federation expressing gratitude for the avoidance of disruption in the marketplace.

The UPS labor agreement comes amid a heightened focus on labor rights and improved wages across various industries. The pandemic’s impact on lower- and middle-class workers saw wages surge for the first time in decades, but contract workers often missed out on these gains. As a result, actors, writers, nurses, teachers, and workers from other sectors have recently gone on strike or threatened walkouts.

The newfound energy and empowerment within the American labor movement have been evident in these negotiations. Sean O’Brien highlighted that the UPS agreement sets a new standard, raising the bar for workers across different industries.

Despite the positive outcome, UPS workers must still ratify the tentative deal, which will be finalized in a little over three weeks. A no vote could still trigger a strike, potentially taking place later in August.

The stakes were high for UPS, as a strike could have led to the loss of long-term customers who might have signed contracts with competitors like FedEx to ensure continuity in their supply chains. UPS handles a staggering average of 20.8 million packages daily, and alternatives such as FedEx, the US Postal Service, or Amazon’s delivery service could not have absorbed the entire workload.

US President Joe Biden praised the tentative deal, underscoring the importance of cooperation between employers and employees to ensure workers receive fair pay and benefits.

This UPS labor deal will have far-reaching implications for the entire labor movement, and its successful ratification will mark a significant achievement for both workers and the company. As Teamsters members now prepare to cast their votes, the eyes of industries dependent on UPS services remain fixed on the outcome.


UPS and the Teamsters have successfully reached a groundbreaking labor agreement worth $30 billion, averting an imminent strike that could have severely impacted the supply chain and the US economy. The deal promises substantial raises for full-time and part-time workers, addressing key concerns such as mandatory overtime. Although the agreement must still be ratified by UPS workers, it is seen as a win for both labor and the company. The negotiations reflect the growing empowerment of the American labor movement, with workers demanding higher wages and better rights across industries. The outcome will have significant implications for UPS and the entire labor landscape.

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