Business

UPS avoids strike and blow to the economy

UPS reached a tentative deal with its union workers on Tuesday, avoiding a looming strike.

Why it matters: The tentative deal comes just days before 340,000 workers would have walked off the job. A strike this size could have cost the U.S. economy more than $7 billion while causing “significant and lasting harm” to businesses and workers, according to consulting firm Anderson Economic Group.

Details: The deal raises wages for all workers, “creates more full-time jobs, and includes dozens of workplace protections and improvements”, the teamsters said in a release.

• The raises will bring full-time drivers average pay to $49 per hour, making them the highest paid delivery drivers in the nation, according to the union.

• Starting pay for part-timers will be $21 per hour, up from $16.20 in the last contract.

• The deal also included A/C in some of the delivery vehicles, new holidays, and no forced overtime.

Big picture: All told, UPS put an additional $30 billion on the table due to the negotiations. Teamsters President Sean M. O’Brien said the deal “sets a new standard in the labor movement.”

• The UPS union is the largest in North America and highly influential. The historic deal will likely inspire other unions as they head into negotiations.

What to watch out for: The United Auto Workers are following the UPS union’s lead by threatening to strike before contract negotiations start later this summer.

Business & Economy

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World

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US News, Politics, & Government

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Sports & Entertainment

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Science, Health, & Tech

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