UPS averts strike, as Teamsters union announce tentative agreement

The International Brotherhood of Teamsters announced Tuesday that they reached a tentative agreement with United Parcel Service Inc.
UPS,
-2.13%
on a new contract, which includes “lucrative” wage increases, more jobs and workplace protections and improvements. UPS’s stock rose 0.9% ion midday trading, after being down as much as 0.8% earlier. Included in the contract, which would extend through 2028, existing full- and part-time union members will get $2.75 more per hour in 2023 and $7.50 more per hour over the length of the contract. Existing part-time workers will be paid a minimum of $21 per hour, and the average top rate for full-time workers will increase to $49 per hour. The contract would also include the creation of 7,500 new full-time union jobs and the fulfillment of 22,500 open positions. “UPS has put $30 billion in new money on the table as a direct result of these negotiations,” said Teamsters General President Sean O’Brien. The stock has rallied 7.8% over the past three months while the S&P 500
SPX,
+0.39%
has gained 12.2%.