New 5-Year Contract Increases Wages, Strengthens Pensions, Tackles Subcontracting

 UPS Freight Teamsters have voted overwhelmingly to ratify a new national five-year master agreement that increases wages, significantly strengthens pension benefits and takes on the issue of subcontracting.

The vote, which was 5,222 to 2,107, was held at local union halls during the weekend. Participation was 69 percent, which far exceeded the previous ratification vote last June, which was 58 percent. In New Mexico, the vote from Teamsters Local 492 UPSF Members was 18 to 2 to ratify the contract. Thank you to all that voted. Complete vote results can be viewed here. 

“UPS Freight members told us their top concerns were pensions and protecting their work, and this new contract addresses those issues head on,” said Ken Hall, Teamsters General Secretary-Treasurer and Package Division Director. “Today’s vote reflects the strength of the new agreement. It’s an industry-leading contract.” 

The short turnaround between the local leaders' approval and the rank-and-file vote was required because the contract had to be ratified by Jan. 15 for the pension improvements to take effect. 

The new five-year national contract, which covers 13,000 UPS Freight workers, improves and protects wages, benefits and working conditions at a time when most freight companies are making cuts. The contract:

• Provides $2.50 in wage increases over five years, making UPS Freight Teamsters the highest-paid in the industry;

• Improves and protects pension benefits;

• Lowers health insurance co-pays while maintaining strong benefits;

• Puts laid-off road drivers back to work;

• Provides the ability for more part-time workers to become full-time;

• Improves and protects vacation benefits of workers serving in the military; and 

• Significantly lowers monthly cost for retiree health insurance