UPS and the Teamsters have agreed to a pact that will increase wages and benefits by $9 an hour over five years. The agreement covers 238,000 employees and is the largest union contract in the country. More than half the increase will go toward pensions and benefits.
In addition to the national deal, Teamsters Local 135 in Indianapolis inked a contract with UPS Freight. UPS Freight is the new name for Overnite Transportation. Before UPS acquired Overnite and changed its name, the company had been a nonunion shop for more than 50 years.
The new pact created a “card check/neutrality agreement” between the Teamsters and UPS Freight. That means once a majority of workers at any location sign the contract, the facility becomes a union shop. No elections will be held. UPS Freight currently has 15,000 employees. The Teamsters expects many of them will join the union.