UPS reaches tentative contract with 340,000 unionized workers potentially dodging calamitous strike
UPS reaches tentative contract with 340,000 unionized workers potentially dodging calamitous strike
UPS has reached a contract agreement with its 340,000-person strong union Tuesday, averting a strike that had the potential to disrupt logistics nationwide for businesses and households alike.
Sounds like a great deal:
Under the tentative agreement, existing full- and part-time UPS union workers will get $2.75 more per hour in 2023, and $7.50 more per hour over the length of the five-year contract. The agreement also includes a provision to increase starting pay for part-time workers, which the union had called the most at risk in the company’s workforce of being exploited. Starting pay for part-time workers will be $21 per hour, it said, up from $16.20 today.
More proof that there is power in a union
It's a good bump for part time, but $7.50 over 5 years is pretty garbage. That's probably about 5% per year.
Inflation is below 5% and should keep going lower over 5 years, especially if we dip into recession. If that works out to 2-3% real wage growth guaranteed regardless of a recession that's pretty decent. Especially because that's above and beyond any pay increases any individual worker would get for having more experience.
This is pretty incredible news.
Far as I can recall this is the first significant Union gain in a while.
Which makes me wonder which way will go from here.
A) Amazon drivers will get similar benefits? B) UPS will never again put themselves in the position where they fall behind Amazon competitively.
For A) to happen, we need to unionize Amazon. That's gonna be a tall order, but it's one we need to tackle head on.
OBrian is coming for Amazon and Fed Ex next. If anyone can do it, he can.
When unions win, everyone wins.
UPS driver here with 20 years.
This is hands down the best contract I've ever seen. Hats off to O'Brian and the rest of the negotiation team. It gets a much needed pay raise for the Part Time guys and gals, has strong language for keeping cameras and spy-tech out of our faces, and addresses much needed safety issues. I'm looking forward to sitting down and reading the contract in full in the next couple of days.
striking works.
My only concern is the part regarding AC. I fear they're just going to buy multiple years worth of vehicles prior to when the change goes into effect, and hold off on buying new as long as they can.
The supply chain will not allow that to happen. The facilities that build UPS trucks already have production schedules that are full into 2024.
It's going to be a big effort just to meet the January 1st deadline that the contract currently sets out.
Fun fact:
The trucks already come with AC and heat shielding for the exhaust. UPS has them ripped out to save money.
That's not true on the standard package car that makes up the majority of their fleet.
You are partially correct specifically when it comes to the P31 package car on the RAM or F250 chassis.
They got shafted. Better than before, but nowhere near enough.