Approximately 250,000 full and part-time employees at American package delivery and supply chain management organisation United Parcel Service (UPS) are set to receive a pay increase and back pay as a result of a new collective bargaining agreement.
The deal, negotiated in conjunction with north American trade union Teamsters, includes a pay rise of $0.75 (£0.62) an hour for all full and part-time staff, effective from 1 August 2019. Furthermore, Teamsters members who work part-time at UPS will see their starting base pay increase to $14 (£11.54) an hour, also effective from the beginning of August.
In addition to these newly implemented pay rises, the collective bargaining agreement between Teamsters and UPS also secures retroactive pay increases for employees; this totals $660 million (£544 million) for the hours worked between 1 August 2018 and the final ratification in April 2019.
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This includes a pay rise of $4.15 (£3.42) an hour for both full and part-time staff over the term of the Teamsters and UPS contract, which extends until 31 July 2023; the starting wages for part-time employees will also increase by $5 (£4.12) over this period.
Jim Hoffa, general president at Teamsters, said: “Our members are dedicated, hardworking men and women who are the backbone of this country’s package delivery system. They have well-earned all of the back pay from the [organisation] as well as the [1 August 2019] general wage increase.”
A spokesperson at UPS added: “UPS implemented contractual pay increases of $0.75 per hour in August 2019 for US-based employees covered by the UPS [and] IBT National Agreement. Over the five-year term of the agreement, base pay will increase $4.15 per hour for small package employees. Additionally, the starting wage rate for part-time employees increased $1.00 per hour to $14.00.
“Healthcare, pension, tuition assistance, paid time-off and other attractive benefits, combined with hourly wages, make UPS among the most preferred employers in the transportation industry. The agreement covers package handlers, drivers and other personnel in various classifications.”