Ups Contract Agreement

Negotiations between the union and UPS began well before July 31, 2018, the expiration date of the previous five-year contract. An agreement was not only a long process, but also a controversial process. UPS Store employees are not unionized and are not covered by this agreement. The new contract will improve wage growth for all categories of workers, meaning that some members will receive immediate increases of up to $2 to $3 per hour. Workers who already receive the maximum rate will receive an increase of $4.10 over the five-year contract. Full-time seniority workers (at least 90 days on duty) earn twice as much time on weekends if they work at least five hours. The International Brotherhood of Teamsters has compiled and published the UPS Southern Region Agreement. The version, which appears in printed contract books and will be provisionally available in the summer by IBT notification, will be published as a reference below. The investments are expected to benefit UPS in the long term, but are related to high ex ante costs, which affected 3PL`s profits in the first quarter. The ratification of the contract and the obligation to increase the remuneration of workers retroactively to August 1 may result in an additional financial burden for UPS. The implementation of the contract guarantees a level of security for UPS for the next four years. “This agreement and the master`s contract previously negotiated for UPS Freight employees help ensure that UPS and our employees are well positioned to succeed in the years to come,” said Teri McClure, Chief Human Resources Officer und Senior Vice President of Labor at UPS.

Teamsters ratified the master`s contract last October, although more union members voted against the agreement than they did. According to trade union rules, two-thirds of them must reject the agreement if less than half of the members vote. Only 44% of the members took part in the ratification referendum, but among them they did not reject the agreement by a two-thirds majority. After ratification, the treaty would enter into force once the natives voted on additions, including the last local 243, based near Detroit.

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