The Teamsters Union secured significant concessions from UPS on Tuesday to avoid a massive strike, but other labor conflicts still rage across the U.S.
The newly struck deal for the more than 300,000 UPS drivers included a $2.75 per hour wage increase this year and a $7.50 per hour raise over the length of the new five-year contract. Part-time workers, who are often paid much less than full-time employees, will immediately have their wages rise to at least $21 an hour.The deal, which still needs to be ratified by workers, also adds Martin Luther King Day to the list of paid holidays off and ends forced overtime on off days.
The economic and political environment in the U.S. is ripe for strikes or at least threats of strikes. With low unemployment and a fiercely union-friendly president in the White House, unions now feel they’ve got the upper hand at the negotiating table. The vote to refuse the deal was close, with 57% of members voting against the measure. Both sides agreed to continue negotiations this week, implying they remain close to an agreement. The reason the deal was rejected was not disclosed by the union.
Despite declining the deal, FedEx pilots can’t walk out as soon as their contract expires. The pilots, like railway employees, fall under the Railway Labor Act, which requires workers to go through federally mandated union negotiations before they can strike.
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