UPS Contract Increases Wages, Protects Benefits, Creates New Full-Time Jobs
The five-year contract covering about 250,000 Teamster-represented workers at UPS took effect in late April, increasing wages, protecting benefits and creating thousands of new full-time jobs.
The contract took effect after the last of the regional, supplemental agreements was ratified. Economic improvements in the contract were retroactive to August 1, 2018, which meant that UPS had to cut checks worth $660 million to workers shortly after the contract took effect.
“This contract is worth $14.5 billion, making it the richest UPS contract in history,” said Jim Hoffa, Teamsters General President and Chairman of the Teamsters National Negotiating Committee. “Our members work hard every day making UPS successful, and this contract will provide our members the security they deserve in the years to come.”
“This contact 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, Co-Chair of the National Negotiating Committee and Director of the Teamsters Package Division.
“I’m happy to be moving forward—I think this is a great contract,” said Kevin Kemer, a member of Local 407 in Cleveland and a 30-year UPS Teamster who is a package-car driver.
“This contract provides UPS Teamsters with many gains and it will also help UPS remain successful, which is important for its workforce. The ultimate goal for workers is to have a career at UPS, and this contract helps workers attain that goal,” Kemer said.
The contract addresses major issues for members:
• Wage increases of $4.15 per hour for both full-time and part-time workers over the term of the contract and increases the part-time start rate by $2.50. The new part-time rate will jump to $13 right away, reaching $15.50 by 2022.
• All full-time and part-time UPS Teamsters will continue to receive health insurance for the member and their family without paying premiums.
• Strengthens grievance enforcement for harassment with a sitting arbitrator and monetary penalties.
• A new procedure to make it easier to get on or off the overtime list.
• Requires UPS to create 5,000 new full-time jobs during the term of the agreement, including a minimum of 2,000 sleeper team driver jobs.
• A new combination driver classification that will provide service to UPS customers that demand weekend deliveries, helping to grow volume and protect the Monday-Friday jobs. In areas that use these new driver positions, every current Monday through Friday regular package car driver job will be protected.
• In areas that currently have a 40-hour guarantee, workers will continue to receive the weekly guarantee. No full-time worker can be laid off if part-time, utility or part-time cover drivers are working.
• Less subcontracting in feeder (long-haul) drivers. Trailers currently moved by the railroads will be converted to Teamster jobs. As UPS hires and trains drivers, the Teamsters will see thousands of new high-paying full-time jobs.
• Dishonesty and technology: The contractual protections against using technology to discipline employees are strengthened. UPS must give a verbal warning on an identical infraction (two seat belt violations, for example) before issuing a warning letter on that violation. The restriction on using technology for discharge remains in effect. The new language further restricts the definition of dishonesty.