Public interest in working for the United Parcel Service (UPS) skyrocketed as a result of the new $30 billion union contract arranged between the Teamsters labor union and company management last month. UPS-related searches on job websites have been up by as much as 50% in recent weeks—and it might have something to do with the fact that UPS drivers will now make $170,000 per year.
In June, Teamsters employed by UPS voted to strike if a new contract could not be established before August 1. The motion passed with 97% support, threatening to bring one of the nation’s biggest shipping enterprises to a grinding halt. However, just before the cutoff date, the two parties managed to reach a resolution.
As Valuetainment reported at the time, negotiators returned to the bargaining table in late July, agreeing to boost starting wages to $21 per hour and add air conditioning to new delivery vehicles, among other concessions. “Together, we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees, and to UPS, and our customers,” said UPS CEO Carol Tome. “This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.”
The resolution has been put up for a ratification vote, the results of which will be announced on August 25.
Learn the benefits of becoming a Valuetainment Member and subscribe today!
The latest UPS earnings call sparked new interest among prospective employees. According to Bloomberg, the call revealed that “full-time drivers will make around $170,000 in annual pay and benefits by the end of the five-year contract. Part-time union employees will earn at least $25.75 per hour and receive full health care and pension benefits.”
These benefits are far above industry standards and have a clear appeal for would-be delivery workers, but UPS clarifies that these perks won’t be available immediately after hiring. A promotion to delivery driver usually only comes after years of warehouse work, typically as a part-time package loader during daily sorting rotations. However, even these part-time positions are given the same benefits as other UPS workers. Additionally, once an employee becomes a driver, the low-level delivery positions require heavy lifting, frequent stops, and long hours in exchange for the pay increase.
With post-COVID shipping demands declining, UPS is also not actively hiring large numbers of new employees—and with the new contract expected to go into effect this month, the company lowered its yearly profit forecast to account for higher labor costs.
But in light of these factors, are unions a net positive for companies…or are they the source of even more problems? Patrick Bet-David tackles this very issue:
Add comment