‘Long process’ over: UPS contract with Teamsters finally takes effect

After several false starts and nearly two years of negotiations and ratifications by separate Teamsters locals, a five-year contract covering about 250,000 Teamster-represented workers at UPS is in force – despite being rejected by more than half those Teamsters who voted in the lengthy ratification process.

UPS workers in Michigan ratified the last outstanding supplemental agreement. Raises and other economic improvements for UPS workers are retroactive to last Aug. 1, the union said today.

The Teamsters said the new national contract will increase wages, protect benefits and create thousands of new full-time jobs. UPS is the world’s largest freight transport company with close to $70 billion in revenue forecast this year.

That contract was hung up because of fine print involving “supplemental” side agreements with certain locals. Late last year, some 54% of UPS Teamsters voted “no” on the new deal. But under a Teamster rule, a rejection requires two-thirds of the voters to vote down the contract when less than half of eligible members participated in the vote.

“This contract 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,” Denis Taylor, Co-Chair of the National Negotiating Committee and Director of the Teamsters Package Division, said in a statement. “We realize this has been a long process, and we appreciate our members’ patience and support.”

The union said the new deal includes 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 retroactively to last Aug. 1. All full-time and part-time UPS Teamsters will continue to receive health insurance for the member and their family without paying premiums, the union said.

The Teamsters said the agreement also strengthens grievance enforcement for harassment with a sitting arbitrator and monetary penalties, and a new procedure to make it easier to get on or off the overtime list.

In a victory for the union, the Teamsters said the new deal requires UPS to create 5,000 new full-time jobs during the term of the agreement. That would include a minimum of 2,000 Article 43 driver jobs, and a new combination driver classification that addresses the changes brought on through the e-commerce revolution, according to the union.