Full-time UPS drivers will earn an average of $170,000 in annual pay and benefits at the end of a five-year contract agreement, UPS CEO Carol Tomé said during an earnings call Tuesday.
The salary ranges for full-time and part-time drivers were among the details to come out this week as the Teamsters union begins the process of ratifying the tentative agreement that emerged last month as a strike appeared imminent.
"When you look at total compensation, by the end of the new contract, the average UPS full-time driver will make about $170,000 annually in pay and benefits," Tomé said. "And for all part-time union employees that are already working at UPS, by the end of this contract, they will be making at least $25.75 per hour while receiving full health care and pension benefits."
The Teamsters authorized a strike if a new contract agreement couldn't be reached. Voting on the proposed contract began last week and will continue until August 22nd.
Working conditions for workers are expected to improve as UPS and Teamsters reached an agreement on air conditioning measures, "including air conditioning and every new U.S. package car starting in January 2024."
Workers will also get Martin Luther King Jr. Day as a paid holiday for the first time in company history thanks to the new tentative contract.