Q: What does UPS hope to achieve in these negotiations?
A: We’re not far apart on the issues we’ll be negotiating. UPS and the teamsters both agree that a healthy and growing UPS is good – for our employees, our company and customers, and the union.
Q: When does the current contract expire?
A: Aug. 1, 2023.
Q: Is there one contract or multiple agreements?
A: The UPS-Teamsters labor agreement has two layers. The National Master Agreement (NMA) addresses topics such as wages, healthcare and pension. There are also more than 40 supplements and riders that cover specific areas of the country addressing local topics, such as route bidding, vacation selection and optional holidays. Each eligible Teamsters-represented employee can vote on the NMA and the supplement and/or rider that covers their employment. All of these agreements – the NMA, supplements and riders – must be ratified before any of them can be implemented.
Q: Who is part of the National Master Agreement?
A: The agreement covers about 350,000 U.S. UPS employees who are primarily package delivery drivers, tractor-trailer drivers, package handlers, clerks and mechanics.
Q: What happens during the negotiations?
A: A typical cycle has two phases: negotiation and ratification. During a typical negotiation cycle, economic issues (e.g., pay and benefits) and non-economic issues (e.g., seniority rights, time off, etc.) are discussed. UPS and Teamsters representatives negotiate the issues, usually over several months. Once the two sides reach a tentative agreement, or handshake, it is put out for a simple-majority ratification vote by eligible employees. Get more bargaining basics here.
Q: Will employees get a raise during this negotiation?
A: Our employees have industry-leading pay and benefits, and we intend to keep it that way as we continue to attract and retain the best talent. Today, average annual pay for UPS full-time package car drivers is $95,000 with an additional $50,000 in health, welfare and pension contributions. We will work with the Teamsters to ensure that our employees’ needs are met, while keeping UPS strong and nimble for the future.
Q: Why won’t you discuss the issues you intend to raise at the table?
A: UPS believes negotiations are best handled at the bargaining table. At the same time, we realize our employees and other stakeholders demand more transparency than in the past, and we will be a source of accurate information.
Q: What other unions represent UPS employees?
A: The International Association of Machinists (IAM) represents some of our conveyor and automotive mechanics, the Independent Pilots Association (IPA) represents UPS Airlines pilots, Teamsters Local 2727 represents our aircraft mechanics and the Transport Workers Union (TWU) represents our flight dispatchers.