The good news for UPS shareholders is that the cost of this summer’s recent massive wage deal for delivery truck drivers will be less than the $30 billion figure touted by the Teamsters union.
The bad news is that it’s anyone’s guess how much the reduction will be, as senior management is mum on the exact amount.
The plan will give the U.S.’s 340,000 full-time UPS delivery truck drivers an annual salary of $170,000 and benefits, including health care and pensions, at the end of the five-year agreement. 86% of regular UPS truck drivers vote in record number late last month Ratify the tentative agreement negotiated by the union on their behalf.
UPS CEO Carol Tome told CNBC: ‘This is not a $30 billion deal’ in interview Monday, but she declined to give specific figures.
She went on to call wage increases of 3.3% compounded annually “a deal we accept every day.” Additionally, management retained the ability to dispatch drivers on weekends, “which is very important to our customers.”
In addition to UPS workers remaining the highest-paid delivery drivers in the country, the Teamsters union also won a concession that Martin Luther King Jr. Day would be treated as a full holiday, and as the nation struggles to weather the storm, Each vehicle is equipped with air conditioning. The hottest summer on record.
Are additional costs such as those arising from other negotiated benefits included in its cost? Estimated US$30 billion The situation was unclear and the union could not immediately be reached. wealth for comment.
“Our math is definitely lower,” said Brian Newman, UPS treasurer. Reuters Tuesday.
Interest in driving UPS surges
Discovered UPS delivery guys may not be as blue-collar as they appear on sitcoms king of queens This shows that many people question their life choices.Reported by recruitment website Indeed Search volume increased by 50% Purchase UPS or United Parcel Service within a week of signing a new contract.
The deal is emblematic of Bidenomics, the White House’s economic agenda designed to help Main Street rather than Wall Street.
Despite Donald Trump’s celebration Stock market hits record high and The rise of a handful of trillion-dollar companies as evidence that his government signature tax deduction Biden is rebuilding relationships with blue-collar workers, trying to end an era of stagnant middle-class wages.
Inspired by “the most pro-union president in American history,” labor leaders such as SAG-AFTRA’s Fran Drescher and the UAW’s Shawn Fain have either taken to the picket lines or plan to do so on behalf of their members.
However, the stakes are high for both UPS and the U.S. economy. Truckers strike averted at last minute could become ‘most expensive in a century”, according to a widely cited estimate from Anderson Economic Group.
financial publications Bloomberg Called UPS Trucker Deals “A testament to organized labor’s newfound leverage when wages grow faster than inflation.”
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