Q: What is the current status of UPS negotiations with the Teamsters?
A: On August 22, the Teamsters announced that Teamsters-represented employees at UPS had voted to overwhelmingly ratify a new five-year National Master Agreement. All local supplemental agreements also have been ratified except one, which we expect to be finalized shortly. Voting results for agreements covering UPS employees under locals 705 and 710 are expected soon.

Q: When does the new contract go into effect?
A: On August 22, the Teamsters announced that Teamsters-represented employees at UPS had voted to overwhelmingly ratify a new five-year National Master Agreement. All local supplemental agreements also have been ratified except one, which we expect to be finalized shortly. The new contract will go into effect immediately once this supplement is ratified.

Q: Why does UPS consider this a win-win-win agreement?
A: This contract includes wins for our people, our company and customers and the Teamsters. Among its many positives, this agreement increases our already industry-leading wages and benefits and puts UPS in a prime position to stay competitive and continue delivering best-in-class service for our customers.

Q: When can employees expect this contract’s pay increases reflected in their paychecks?
A: Adjustments to wages and benefits will be implemented under agreed-upon terms as soon as possible once the contract goes into effect.

Q: How will this contract impact the company and customer costs?
A: Additional information on the National Master Agreement will be shared soon at investors.ups.com.

Q: Is there one contract or multiple agreements?
A: The UPS-U.S. Teamsters labor agreement has two layers. The National Master Agreement (NMA) addresses topics such as wages, health care and pensions. Additionally, more than 40 supplements and riders cover specific areas of the country and address local topics, such as route bidding, vacation selection and optional holidays. Each eligible U.S. Teamsters-represented employee can vote on the NMA and the supplement and/or rider that covers their employment. The NMA and all supplements and riders must be ratified by a majority vote from UPS Teamsters before they can be implemented.

Q: Who is part of the National Master Agreement?
A:  The agreement covers about 330,000 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 the negotiating process, which can take place over several months, representatives from the Teamsters and UPS come together to discuss economic issues (e.g., pay and benefits) and non-economic issues (e.g., seniority rights, time off, etc.). Once the two sides reach a tentative agreement, or handshake, the union puts the proposed contract before eligible Teamsters-represented employees for a ratification vote. Get more bargaining basics here.

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.