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 Cape Town Express.

More Information

16 ℃

Fair in Cape Town

International

Section

First US state tax on firearms, ammunition adopted by California

SACRAMENTO, California: Intending to raise some US$160 million per year to help prevent gun violence, California Governor Gavin Newsom signed ...

Philippines removes Chinese barrier at shoal in South China Sea

MANILA, The Philippines: The Philippines remains steadfast in its resolve not to yield to Chinese efforts to obstruct its fishermen ...

Biden's $15 minimum wage for federal contractors blocked by US judge

VICTORIA, Texas: This week, U.S. District Judge Drew Tipton in Victoria, Texas, ruled that President Joe Biden did not have ...

NTSB probes JetBlue flight for turbulence that injured 8

WASHINGTON D.C.: The National Transportation Safety Board (NTSB) said it is investigating a JetBlue flight on Monday that experienced sudden ...

S. Korea sends signal to north with large military parade

SEOUL, South Korea: Marking a tougher stand against North Korea, South Korea held its first large-scale military parade in over ...

US FDA warns healthcare companies, exporters of cough syrups

WASHINGTON D.C. After hundreds of deaths overseas from contaminated cough syrups, the U.S. Food and Drug Administration (FDA) has cracked ...

South Africa

Section