July 25, 2023

• Agreement contains $30 billion of new money, union says
• Covers 340,000 employees
• Employer was directly communicating with some members in bargaining process, circumventing the union.
• existing full- and part-time UPS union workers will get $2.75 an hour more in 2023, $7.50 per hour over the five-year contract
• Part-time workers will get a raise to no less than $21 an hour compared with the starting part-time wage of $15.50 for 2023 in the existing contract.
• Delivery drivers will have an average top rate of $49 an hour

Financial media report:

UPS will have to boost efficiency to absorb the higher cost of its labor force at a time when package demand is declining and customers are looking to claw back the surcharges and price increases that couriers applied liberally during the pandemic.

Related:

• FedEx Corp. to undertake an effort to slash $4 billion of costs by fiscal 2025 and reap another $2 billion of savings by fiscal 2027 from the restructuring of its networks.