UPS CEO says delivery drivers will make an average of $170,000 in newly ratified ‘historic’ contract – but one driver says that’s ‘a little excessive’

'Amazon better watch out': UPS CEO says delivery drivers will make an average of $170,000 in newly ratified'historic' contract - but one driver says that's'a little excessive'

‘Amazon better watch out’: UPS CEO says delivery drivers will make an average of $170,000 in newly ratified ‘historic’ contract – but one driver says that’s ‘a little excessive’

Unionized UPS workers have agreed to a new five-year contract that the company’s CEO says will see delivery drivers earn an average of $170,000 in annual salaries and benefits by the end of the five years.

The Teamsters union, which represents approximately 340,000 UPS workers, voted an overwhelming majority of 86.3% to ratify the new collective bargaining agreement, which will increase wages for full- and part-time UPS workers, create more full-time jobs, and introduce workplace protections such as labor protection . B. Air conditioning in UPS trucks.

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“Our members just ratified the most lucrative deal the Teamsters have ever negotiated at UPS. “This contract will improve the lives of hundreds of thousands of workers,” said Teamsters General President Sean M. O’Brien in a statement media statement.

“Teamsters has set a new standard and raised the bar for pay, benefits and working conditions in the parcel delivery industry. This is the blueprint for how workers should be paid and protected across the country, and non-union companies like Amazon should do better to heed it.”

Here’s what the landmark contract looks like — and what a UPS driver has to say about the CEO’s claim.

What is in the contract?

Under the new deal, existing full-time and part-time UPS employees (in the Teamsters union) will earn $2.75 more per hour in 2023 — and over the contract term, pay increases will total $7.50 per hour amount.

Existing part-time employees receive an immediate pay rise to a minimum of $21 an hour, and pay increases for full-time employees ensure UPS Teamsters remain the highest-paid employees delivery driver in the country, bringing their average maximum rate to $49 an hour.

The agreement will also create 7,500 new full-time union jobs at UPS (NYSE:UPS) and fill 22,500 vacancies, giving part-time workers more opportunities to transition into full-time employment.

“This is the richest national contract I’ve seen in my more than 40 years as a Teamsters representative at UPS,” said Teamsters General Secretary and Treasurer Fred Zuckerman. “This contract offers more benefits than any other UPS contract, with no compensation for the company.”

“But the hard work doesn’t end here. We will continue to fight hard to enforce this contract and ensure UPS lives up to every word over the next five years.”

Read more: This Vermont caretaker built a fortune of $8 million without anyone around him knowing. Here are the 2 simple techniques that made Ronald Read rich – and can do the same for you

The UPS driver sets the record straight

during one Current earnings callUPS CEO Carol Tomé said the average full-time driver will be making around $170,000 a year in salary and benefits by the end of the five-year contract.

When the new treaty was first proposed, some people were opposed the proposed $170,000 annual salary – especially on social media.

TikTok user Skyler Lee Stutzman, who says he is the parcel company’s driver, used the video-sharing platform to set the record straight viral video This has been viewed over 17 million times.

Stutzman claims his wage will increase to $44.26 an hour under the new contract — consistent with the $2.75 increase in 2023. He then multiplies that hourly rate by 2,080 hours (40 hours per week) to come up with an annual salary of about $92,000.

Using the same formula, working 40 hours a week at the new average maximum rate of $49 an hour would bring in just under $102,000 a year.

“But that’s not even counting overtime,” Stutzman said. “It’s also not the important part that we’re missing here.

“One of the other things that a lot of people don’t consider is our health insurance and our pension.”

According to Stutzman’s breakdown, average retirement contributions would add up to an additional $24,960 per year. UPS, for its part, says so donates more than $23,000 per year to the retirement plan of each full-time employee.

As for Health insuranceStutzman doesn’t give an estimate — but a survey commissioned by the Kaiser Family Foundation found that average annual premiums For employer-sponsored health insurance, they were $7,911 for individual insurance and $22,463 for family insurance in 2022.

“You quickly realize that it would actually cost about a $170,000 a year job to replace that job for me,” Stutzman admits, saying the company is “fantastic” to work for.

In a later Tiktok video Although the Teamsters negotiated a “strong” treaty, Stutzman claims that the new deal “still can’t keep up with inflation” if inflation continues at current levels, even though the deal was also released before the treaty was ratified .

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This article is for informational purposes only and should not be taken as advice. The provision is made without any guarantee.

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