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May 3, 2019 10:15 AM, EDT

UPS, Teamsters Finalize New Five-Year Labor Contract

Teamsters The Teamsters headquarters in Washington. (TT File Photo)

UPS Inc. and an estimated 255,000 members of the International Brotherhood of Teamsters are now working under a new five-year agreement that brings labor stability to the Atlanta-based shipping giant. The contract took effect on April 29 after workers in Michigan ratified the last outstanding supplemental agreement.

Economic improvements in the new contract are retroactive to August 1, 2018, the date the previous contract expired.

UPS officials did not comment on implementation of the new contract, but told Transport Topics in February after negotiations had concluded they were pleased a successful contract agreement had been reached with IBT.

“This contract recognizes our members’ hard work by providing solid wage increases, protecting their health coverage, improving their retirement security and giving part-time workers the chance to advance into long-term careers,” said Denis Taylor, Teamsters negotiator. “We realize this has been a long process, and we appreciate our members’ patience and support.”

Under the new agreement, a driver’s base salary would increase to $83,000 annually from the current $75,000. The agreement also creates a new class of “hybrid drivers” who work weekdays and weekends but whose pay would top out after five years at $34.79 an hour, or more than $72,000 a year.

Including these drivers addresses union concerns about overtime in the event UPS adds Sunday delivery to its current Monday-to-Saturday schedule. The carrier added Saturday service more than a year ago.

UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.