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UPS Drivers to Receive $170,000 in Pay and Benefits After Union Agreement

According to UPS CEO Carol Tomé, UPS drivers will earn an average of $170,000 in annual pay and benefits at the end of a five-year contract agreement. This announcement comes after a long negotiation process between UPS and the Teamsters Union, which successfully avoided a strike and secured a new contract for 340,000 union employees.

“We expected negotiations with the Teamsters to be late and loud, and they were,” said Tomé during the earnings call. As a result, UPS has adjusted its full-year revenue forecasts to account for the impact of labor negotiations and the costs associated with the tentative agreement.

Under the new contract, full-time workers’ compensation will increase to $170,000 from around $145,000 over five years. Part-time workers will also see a salary increase to at least $25.75 per hour and an end to mandatory overtime. These changes were announced by Tomé during the call with investors.

Following the announcement of the new pay deal, online searches for jobs at UPS have surged by 50%, according to data from Indeed.

Higher six-figure pay for UPS drivers

By the end of the new contract, full-time UPS delivery drivers will earn an average of $49 per hour, which amounts to nearly $102,000 per year based on a 40-hour workweek and 52 weeks per year. UPS has also confirmed that these employees will have an eight-hour workday guaranteed.

In addition to their base pay, UPS drivers will receive $50,000 in benefits, including health, welfare, and pension contributions, according to a company spokesperson. This places UPS drivers in a similar pay range as software developers, finance directors, and physician assistants, who earn average salaries in the $108,000 to $115,000 range.

The new labor contract is expected to be ratified in two weeks, with voting ending on August 22, as stated by Tomé.

The agreement between UPS and the Teamsters Union is regarded as the largest private-sector collective bargaining agreement in North America, according to a blog post by the union group. This development comes as unions secure wage increases for aviation workers and less than a year after a court upheld a victory for union workers at Amazon’s Staten Island warehouse.

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