Robert Besser
16 Sep 2023, 20:17 GMT+10
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.
Get a daily dose of Raleigh Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Raleigh Times.
More InformationSACRAMENTO, California: Fast food workers will now receive $20 per hour in California, after the governor signed a fast food ...
BEIJING, China: In a deal worth US$10 billion at list prices this week, state-owned carrier China Eastern Airlines announced that ...
BEIJING, China: This week, China Evergrande Group said its founder and chairman, Hui Ka Yan, is being investigated over suspected ...
RIVERSIDE COUNTY, California: In his opening statement this week in the first U.S. trial over allegations that a car autopilot ...
SEATTLE, Washington: As part of Washington's efforts to stop Big Tech from monopolizing the most lucrative parts of the internet, ...
JEDDAH, Saudi Arabia: As part of Riyadh's efforts to further Saudi Arabia's electrification drive, electric vehicle (EV) maker Lucid announced ...
TALLAHASSEE, Florida: The Florida Lottery said this week that the second-largest lottery winner in U.S. history has come forward to ...
VICTORIA, Texas: This week, U.S. District Judge Drew Tipton in Victoria, Texas, ruled that President Joe Biden did not have ...
EL PASO, Texas: Over the weekend, Oscar Leeser, Mayor of El Paso, said that the surge in migrants crossing the ...
(Photo credit: Stephen Brashear-USA TODAY Sports) Entering the final day of the regular season, this is what is known: The ...
(Photo credit: Nathan Ray Seebeck-USA TODAY Sports) The Tampa Bay Rays recalled Cooper Criswell from Triple-A Durham on Saturday and ...
(Photo credit: Michael Longo/For USA Today Network / USA TODAY NETWORK) Pitt starting quarterback Phil Jurkovec will play Saturday night ...