UPS, Teamsters Reach Agreement

The International Brotherhood of Teamsters and UPS have reached a tentative five-year contract deal, avoiding a potentially devastating nationwide strike. Both parties claimed victory in the deal, which includes raises for all UPS employees and the installation of air-conditioning units in new delivery vans. Under the agreement, UPS union employees will receive a $2.75-an-hour raise this year and a pay increase of $7.50-an-hour over the next five years. Part-time workers will see their starting wage increase to $21 an hour. Union leaders and UPS have reached a tentative five-year contract deal that left rank-and-file workers with mixed reactions. The deal will be subject to union member voting by August 22, and if it fails, the possibility of a nationwide UPS strike remains. A strike could have significant economic consequences as UPS handles many daily package shipments in the country.