The International Brotherhood of Teamsters and United Parcel Service (UPS) have reached a tentative agreement on a new contract, averting a strike that would have affected 340,000 workers.
The deal, which was announced on Thursday, includes wage increases, improved health care benefits, and a commitment to reducing emissions. It still needs to be ratified by the Teamsters membership, but is expected to be approved.
The two sides had been negotiating for months, and the strike deadline was set for July 31. A strike would have had a major impact on the economy, as UPS is one of the largest package delivery companies in the world.
The tentative agreement includes a wage increase of 5.5% over three years, as well as an additional 3% lump-sum payment. Health care benefits will also be improved, and UPS has committed to reducing its emissions by 20% by 2030.
“This is a great victory for our members,” said Sean O’Brien, president of the Teamsters’ UPS division. “We fought hard for these improvements, and we’re proud of what we’ve achieved.”
UPS CEO Carol Tome said the company is “pleased” to have reached a deal with the Teamsters. “This agreement is fair to our employees and our customers,” she said.
The tentative agreement is a major win for the Teamsters, who had been seeking significant improvements in wages and benefits. The deal also sends a message to other companies that unions are still a force to be reckoned with.
It remains to be seen whether the tentative agreement will be ratified by the Teamsters membership. However, with the strike deadline now past, it is likely that the deal will be approved.