Saturday, September 6, 2025

UPS and Teamsters Union Avert Strike with Landmark Labor Agreement

UPS (NYSE: UPS) and the Teamsters union have reached a tentative five-year contract agreement for its some-340,000 workers, staving off a potentially disruptive strike. This comes after a protracted negotiation period— briefly interrupted in early July— with a deal finally announced just six days before the planned strike.

The new contract sees UPS proposing a $30 billion fund injection, a move hailed by Teamsters President Sean O’Brien as setting a new standard for labor negotiations. UPS CEO Carol Tomé expressed satisfaction over the deal, stating it rewarded UPS employees with leading pay and benefits while maintaining the company’s competitive edge.

The deal also contains upsides for UPS workers, including heat safety measures such as air-conditioned vehicles, a response to long-standing complaints about increased risk working in record high temperatures. Another hotly contested issue the new contract addresses is part-time drivers’ pay; the new deal abolishes the controversial “22.4s” category of part-time drivers— a two-tiered system that had sparked widespread disapproval amongst workers and led to a leadership change within the union.

The new agreement reclassifies these 22.4 drivers as regular drivers and adjusts their pay accordingly. Additionally, UPS can no longer require drivers to work overtime on their scheduled off-days. Wage increases are also substantial, with current full- and part-time workers guaranteed a $2.75 hourly pay increase this year, equating to a $7.50 increase over the contract’s duration. Starting part-time workers’ wages will rise immediately to at least $21 per hour, escalating to $23 per hour.


Information for this briefing was found via UPS and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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