New labor deal with Teamsters union to be below $30 billion: UPS CEO

Robert Besser
16 Sep 2023, 20:17 GMT+10

This week, Brian Newman, CEO of UPS, said that a new five-year deal with Teamsters-represented workers would cost less than US$30 billion
The contract will cover some 340,000 UPS workers in the U.S. and will increase wage and benefit costs at a 3.3 percent compound annual growth rate over the life of the agreement
When the agreement expires in August 2028, the average UPS full-time driver will earn nearly $170,000 annually in pay and benefits

ATLANTA, Georgia: This week, Brian Newman, CEO of United Parcel Service (UPS), said that a new five-year deal with Teamsters-represented workers would cost less than US$30 billion.

The contract will cover some 340,000 UPS workers in the U.S. and will increase wage and benefit costs at a 3.3 percent compound annual growth rate over the life of the agreement, he added.

"Our math was certainly lower than $30 billion," Newman said.

When the agreement expires in August 2028, the average UPS full-time driver will earn nearly $170,000 annually in pay and benefits. Part-time union employees will earn $25.75 per hour while receiving total healthcare and pension benefits.

Citing high labor costs and lost business during contract talks with the International Brotherhood of Teamsters, UPS cut its full-year revenue and profit targets in August.

The Atlanta-based company is trying to reduce costs to compensate for lower demand and higher labor costs by cutting 2,500 management positions in the second quarter, continuing selective management layoffs, and offering early retirement to company pilots represented by the Independent Pilots Association.

However, the new Teamsters contract allows UPS to automate some work, and it has begun using RFID tracking chips that could eliminate the need for workers to scan the roughly 20 million packages per day.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Tampa Star.

More Information

26 ℃

Fair in Tampa

International

Section

China wants Hong Kong consulates to give personal data of local staff

HONG KONG: The Chinese Foreign Ministry has issued a request to all foreign consulates in Hong Kong, seeking the personal ...

Rattlesnake bites Amazon driver in Florida during delivery

MARTIN COUNTY, Florida: An Amazon driver making a delivery to a Florida home this week was bitten by a rattlesnake ...

Canada's TMX expansion may triple oil flow to country's Pacific Coast

CALGARY, Canada: From early 2024, the long-delayed and controversial Canadian government-owned Trans Mountain oil pipeline expansion (TMX) is expected to ...

Pakistan's Supreme Court proceedings go live on state TV

ISLAMABAD, Pakistan: Pakistan's Supreme Court proceedings were broadcast live on state television on Monday, providing an unprecedented glimpse into the ...

9 teenagers caught after escaping from Pennsylvania detention center

MORGANTOWN, Pennsylvania: Pennsylvania state police said that nine teenage boys who escaped from the Abraxas Academy detention center this week ...

3,000 homeless in Anchorage looking for a place to stay before winter

ANCHORAGE, Alaska: Anchorage is struggling to find housing options for more than 3,000 homeless residents, as the city's mass shelter ...

Business

Section