UPS says drivers will make $170K a year by end of 5-year contract
UPS has reached a contract with its 340,000-strong union, preventing a potential strike that could disrupt deliveries to businesses and households across the country.
WASHINGTON — UPS drivers will earn an average of $170,000 annually in wages and benefits at the end of the projected five-year contract, UPS CEO Carol Tome said in a statement. earnings call on Tuesday.
Late last month, UPS reached a preliminary agreement with the International Brotherhood of Teammates, potentially preventing a strike. threatened to disrupt deliveries for millions of businesses and households across the country.
“We assumed the negotiations with Teamsters would be late and loud and rightly so,” Tome said.
Under the agreement, which still needs to be approved by union members, full-time and part-time unionists will receive an additional $2.75 per hour in 2023 and an additional $7.50 at the end. 5 year contract. The deal also includes a provision to increase the starting wages for part-time workers – whom unions say are most at risk of exploitation – from $16.20 an hour to $21 an hour. . The average salary for part-timers is $20.
Tome told investors Tuesday: “When you consider the total compensation, at the end of a new contract, the average UPS full-time driver will earn about $170,000 annually in salary and benefit. And for all part-time union employees working at UPS, at the end of this contract, they will earn at least $25.75 per hour while receiving full retirement benefits. mind and health care.”
UPS has temporarily agreed to Martin Luther King Jr. Day. become a full public holiday and put an end to mandatory overtime on driver’s days off. Tentative agreements on safety issues have also been reached, including retrofitting trucks with air conditioning.
Voting for the new contract began last week and ends on August 22.
UPS revenue fell in the second quarter, and it lowered its full-year revenue expectations to $4 billion due to reduced package volumes and labor negotiations. Tome said on the company’s conference call that union negotiations have affected their package volumes the further down the negotiations and quarters they receive.
The global shipping industry is facing a decline in the volume of packages due in part to unpredictable developments consumer spending. Spending has been volatile this year after rising nearly 3% in January. Sales fell in February and March before recovering in April and May. Rise interest rate is also playing its part, as the Federal Reserve has aggressively raised interest rates since March 2022. Last month, the Fed raised interest rates for the 11th time in 17 months as part of a joint effort. continued to cool down the economy and control inflation.
UPS said it now expects consolidated revenue in 2023 to be about $93 billion. Its previous forecast was about $97 billion in revenue.
