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United Parcel Service (UPS - Free Report) received encouraging tidings on the labor front when thousands of its workers, represented by International Brotherhood of Teamsters, approved a five-year deal aimed at bettering pay and working conditions for the unionized workers. We remind investors that the tentative agreement between Teamsters and UPS was reached in July 2023.
Evidently, Teamsters represents 34,000 pilots of UPS, which currently carries a Zacks Rank #4 (Sell). In the ratification process, 86% of voting members cast their votes in favor of the deal. The voting procedure (electronic) started on Aug 3 and concluded on Aug 22.
This deal approval has averted the possibility of a strike by the workers. If a strike had materialized, operations of this parcel-delivery giant would have been severely crippled. This would also have worsened the supply-chain scenario in the United States. A strike, in all probability, would have resulted in delayed deliveries during Christmas apart from causing escalation in shipping costs.
This ratification enables the current full-and-part-time employees at UPS, represented by the union, to receive a $2.75 per hour pay increase in 2023. It also makes them eligible to get $7.50 more per hour over the length of the contract, which is five years. The deal has also done away with the contentious two-tier wage system for drivers.
Further, the deal includes provisions aimed at improving workers’ quality of life. To this end, the labor deal, worth $30 billion, has secured additional paid holiday, and safety and health protections for workers like air conditioning in vehicles and cargo ventilation. All local supplemental agreements, barring one, have also been ratified. The new deal will take effect as soon as the remaining supplemental agreement is renegotiated and finalized.
In fact, new labor deals are in vogue these days in the transportation space. With companies struggling with labor shortage, the bargaining power of various labor groups has naturally increased.
Recently, American Airlines’ (AAL - Free Report) pilots ratified a $9.6 billion contract, which boosts the overall compensation of AAL pilots by more than 46% over its duration of four years. In March, Delta Air Lines’ (DAL - Free Report) pilots approved a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay hike over the next four years.
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UPS' 5-Year Labor Deal Gets Workers' Nod, Strike Risk Averted
United Parcel Service (UPS - Free Report) received encouraging tidings on the labor front when thousands of its workers, represented by International Brotherhood of Teamsters, approved a five-year deal aimed at bettering pay and working conditions for the unionized workers. We remind investors that the tentative agreement between Teamsters and UPS was reached in July 2023.
Evidently, Teamsters represents 34,000 pilots of UPS, which currently carries a Zacks Rank #4 (Sell). In the ratification process, 86% of voting members cast their votes in favor of the deal. The voting procedure (electronic) started on Aug 3 and concluded on Aug 22.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This deal approval has averted the possibility of a strike by the workers. If a strike had materialized, operations of this parcel-delivery giant would have been severely crippled. This would also have worsened the supply-chain scenario in the United States. A strike, in all probability, would have resulted in delayed deliveries during Christmas apart from causing escalation in shipping costs.
This ratification enables the current full-and-part-time employees at UPS, represented by the union, to receive a $2.75 per hour pay increase in 2023. It also makes them eligible to get $7.50 more per hour over the length of the contract, which is five years. The deal has also done away with the contentious two-tier wage system for drivers.
Further, the deal includes provisions aimed at improving workers’ quality of life. To this end, the labor deal, worth $30 billion, has secured additional paid holiday, and safety and health protections for workers like air conditioning in vehicles and cargo ventilation. All local supplemental agreements, barring one, have also been ratified. The new deal will take effect as soon as the remaining supplemental agreement is renegotiated and finalized.
In fact, new labor deals are in vogue these days in the transportation space. With companies struggling with labor shortage, the bargaining power of various labor groups has naturally increased.
Recently, American Airlines’ (AAL - Free Report) pilots ratified a $9.6 billion contract, which boosts the overall compensation of AAL pilots by more than 46% over its duration of four years. In March, Delta Air Lines’ (DAL - Free Report) pilots approved a four-year deal, which made DAL’s 15,0000 pilots eligible for a 34% pay hike over the next four years.