UPS Store employees are not unionized and are not covered by this agreement. The implementation of the contract guarantees a level of security for UPS for the next four years. “This agreement and the master`s contract previously negotiated for UPS Freight employees help ensure that UPS and our employees are well positioned to succeed in the years to come,” said Teri McClure, Chief Human Resources Officer und Senior Vice President of Labor at UPS. The new contract will improve wage growth for all categories of workers, meaning that some members will receive immediate increases of up to $2 to $3 per hour. Workers who already receive the maximum rate will receive an increase of $4.10 over the five-year contract. Full-time seniority workers (at least 90 days on duty) earn twice as much time on weekends if they work at least five hours. One of the controversial topics at the negotiating table was the implementation of technology in the operation of the UPS. The new contract requires UPS to hire teamsters six months before the announcement of business plans to integrate new technologies such as drones, driverless vehicles or road trains. However, the agreement does not give the union a veto.

UPS Freight stopped pickups last year pending a workers` strike. The company and the union reached an agreement to avoid a strike, which nevertheless led to disruption. Negotiations between the union and UPS began well before July 31, 2018, the expiration date of the previous five-year contract. An agreement was not only a long process, but also a controversial process. The investments are expected to benefit UPS in the long term, but are related to high ex ante costs, which affected 3PL`s profits in the first quarter. The ratification of the contract and the obligation to increase the remuneration of workers retroactively to August 1 may result in an additional financial burden for UPS. The provisions of the new five-year contract apply retroactively to August 1, 2020 and extend to July 31, 2025. After ratification, the treaty would enter into force once the natives voted on additions, including the last local 243, based near Detroit. Teamsters ratified the master`s contract last October, although more union members voted against the agreement than they did.

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