UPS reaches deal that lowers chances of nationwide Teamsters strike

United Parcel Service (UPS) on Saturday reached a tentative deal with the International Brotherhood of Teamsters that would end a dual wage system for delivery drivers in its next contract, the union announced, a win for the Teamsters that could lower the chances of a nationwide strike as negotiations continue.

“During a hard-fought day at the bargaining table, the #Teamsters reached [a] tentative agreement with @UPS on three major economic issues,” the union announced in a Twitter thread, “tearing down the 22.4 two-tier wage system, establishing Martin Luther King Day as a full holiday for the first time, and ending forced overtime on drivers’ days off.”

The Teamsters last week held off plans to strike to head back to the negotiating table after UPS offered a counterproposal to the union’s requests with regard to compensation and benefits before the current contract expires on July 31. 

"The extraordinary gains, each of which have been key issues for #Teamsters throughout the yearlong contract campaign, came on the heels of an aggressive public warning from the Teamsters National Negotiating Committee that @UPS was running out of time to get a deal," Teamsters said on Saturday.

At the same time, General President Sean M. O’Brien stressed that there's still work to be done to get a new contract in place by August 1.

"But make no mistake — we are not done. @UPS knows we must reach full agreement on other economic issues, including higher wages, within the next few days," O'Brien said. Negotiations are set to continue in Washington on Sunday, according to the union's update.

The union, which comprises more than 300,000 workers, said Sunday that despite "major gains at the bargaining table, practice picketing actions will not let up."

"#Teamsters are continuing to exert enormous pressure on @UPS to concede to the demands of the hardworking members who make the company its multibillion-dollar profits. And no one can doubt UPS Teamsters are ready to #strike if the delivery giant fails to meet those demands," the union said.