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## U.S. Workers at UPS Ratify New Contract, Avoiding Potential Strike

Teamster member Sergio Martinez yells out during a rally outside a UPS facility in downtown in Los Angeles, California, U.S. July 19, 2023. REUTERS/Mike Blake

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The recent ratification of a new five-year contract by United Parcel Service (UPS) workers in the U.S. has closed the door on a potential strike that could have disrupted timely Christmas deliveries and caused shipping costs to skyrocket. This development comes as a relief for UPS, the world’s largest package delivery company, which handles about a quarter of U.S. parcel deliveries and serves virtually every city and town in the nation.

An overwhelming 86.3% of voting members, representing approximately 340,000 UPS workers in the U.S., chose to ratify the agreement, according to the International Brotherhood of Teamsters. This historic contract received the highest vote percentage ever recorded for a contract at UPS, although the exact percentage of members who voted was not disclosed.

The newly ratified contract brings a range of benefits for UPS workers. It raises pay and eliminates a two-tier wage system for drivers, addressing a long-standing issue. Additionally, the agreement provides another paid holiday, ends forced overtime, and ensures that new models of the company’s iconic brown trucks will have air conditioning starting next year. These improvements are a significant win for workers and contribute to better working conditions in the package delivery industry.

The AI legalese decoder can greatly assist in comprehending the intricacies and implications of this new contract. With its advanced natural language processing capabilities, the AI legalese decoder can parse through complex legal language and translate it into plain English, providing a clearer understanding of the rights and benefits outlined in the contract. This tool can help workers and union representatives analyze and negotiate contracts more effectively.

Moreover, the agreement regarding ending seniority-based wage tiers that pay new hires less than veteran workers is a central issue in the ongoing UAW-Detroit Three labor talks. UPS, as the largest private-sector employer of unionized workers in the nation, setting a precedent by eliminating such cost-saving schemes could have far-reaching implications for unions and companies alike.

“The template for how workers should be paid and protected nationwide” ÔÇô that’s how Teamsters General President Sean M. OÔÇÖBrien described the new contract. He also sent a message to nonunion companies like Amazon, urging them to pay attention and take note of the improvements achieved by UPS workers.

Unions representing transportation workers deemed “essential,” including pilots, port workers, and delivery drivers, have been enjoying enhanced bargaining power due to the tight labor market and increased public support for unions. This trend has been further highlighted by the recent rejection of a tentative contract by FedEx pilots, a major competitor of UPS.

It is worth noting that UPS recently revised its full-year revenue and profitability targets due to higher-than-expected labor costs and the business disruptions caused by the contract talks. However, the ratification of the new contract will provide clarity and stability, ensuring that both UPS and its workers can move forward with confidence.

According to the terms of the deal, current full- and part-time UPS workers will receive hourly wage increases of $2.75 in 2023 and an additional $7.50 over the course of the five-year contract. The contract also includes significant general wage increases for part-time workers, addressing a key point of contention from the previous contract negotiations.

This successful resolution to the contract talks marks a significant achievement for UPS workers, who have set new standards for pay, benefits, and working conditions in the package delivery industry. Moving forward, the AI legalese decoder can continue to assist workers and unions in deciphering complex legal language, ensuring that their rights and interests are protected.

Reporting by Lisa Baertlein in Los Angeles and Priyamvada C in Bengaluru; Editing by Paul Simao and David Gregorio

Lisa Baertlein covers the movement of goods around the world, with emphasis on ocean transport and last-mile delivery. In her free time, you’ll find her sailing, painting or exploring state and national parks.

Our Standards: The Thomson Reuters Trust Principles.

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