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HomeBusinessUPS Offers a Tentative Settlement to Resolve Labor Dispute to Avoid Catastrophe

UPS Offers a Tentative Settlement to Resolve Labor Dispute to Avoid Catastrophe

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United Parcel Service (UPS) has reached a tentative deal, ending the protracted labor dispute, in a significant development that relieves both employees and management. After several weeks of protracted negotiations, the business and the union representatives were able to reach a compromise that both solves the major issues raised by the workers and ensures the efficient operation of UPS.

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

For the thousands of UPS employees who have been coping with the uncertainty caused by the disagreement, the proposed settlement is welcome news. Addressing worker demands for pay, benefits, working conditions, and job security was the main emphasis of the negotiations.

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If employees ratify the new deal, existing part-time employees will receive a raise of at least $21 an hour, according to the union. Pay for part-time work was a problem in the negotiations. Those employed full-time will make, on average, $49. Employees will receive an hourly wage increase of $2.75 this year and $7.50 over the course of the five-year deal. Sean O’Brien, general president of the Teamsters, estimates the agreement’s value at $30 billion.

“Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits. Teamster labor moves America. The union went into this fight committed to winning for our members. We demanded the best contract in the history of UPS, and we got it,” said Teamsters General President Sean M. O’Brien. “UPS has put $30 billion in new money on the table as a direct result of these negotiations. We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession. This contract sets a new standard in the labor movement and raises the bar for all workers.”

Highlights of the potential settlement are as follows:

No more making Teamster drivers work overtime on their days off. Drivers would adhere to one of two workweek plans and would not be permitted to be required to work extra on designated off-days.

All seasonal support work will be given preference to UPS Teamster part-timers who have a locked-in eight-hour guarantee and use their own cars. Seasonal labor will be limited for the first time to just five weeks in November and December.

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All UPS Teamsters would receive Martin Luther King Day as a full holiday for the first time.

UPS trucks will also have air conditioning in 2024.

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