It also could throw a wrench into the upcoming holiday shopping season that is a make-or-break period for retailers, including Amazon.com (AMZN.O), the largest UPS customer.
If approved, the deal would raise pay for 340,000 UPS workers and eliminate a two-tier wage system for drivers.
UPS cut its full-year revenue and profitability targets earlier this month, citing higher-than-expected labor costs and business lost during the tumultuous contract talks with the Teamsters.
Under the contract deal, current full- and part-time workers will get $2.75 more per hour in 2023, and $7.50 more per hour over the length of the contract, according to the Teamsters.
General wage increases for part-time workers will be double the amount obtained in the previous UPS Teamsters contract - and existing part-time workers will receive a 48% average total wage bump, addressing a key sticking point in talks, the union said.
Persons:
Sergio Martinez, Mike Blake, Lisa Baertlein, Paul Simao
Organizations:
REUTERS, Teamsters, United Parcel Service, International Brotherhood of Teamsters, UPS, UAW, Detroit, Unions, Pilots, FedEx, UPS Teamsters, Thomson
Locations:
Los Angeles , California, U.S, Atlanta, Los Angeles, Bengaluru