UPS Job Searches Surge After Union Deal Significantly Boosts Wages

Topline

After UPS and the Teamsters Union came to a $30 billion deal that brought unionized UPS drivers increased wages, there was a 50% increase in searches for “UPS” or “United Parcel Service” on the online jobs board Indeed, according to data obtained by Bloomberg, suggesting the increased benefits have made the company a more attractive workplace.

Key Facts

Key Background

On July 25, after weeks of the Teamsters threatening a strike that would’ve crippled the company’s operations as well as the country’s shipping industry, UPS tentatively agreed to a deal that will provide $30 billion in new money for workers over a five-year span, according to both parties. Under the deal, all UPS union employees will receive a $2.75 hourly raise this year and a $7.50 hourly raise over the next five years. The deal also increases starting pay for part-time workers, who make up about half the company’s workforce, from $16.20 to $21 an hour. Additionally, the deal requires UPS to install air-conditioning units in all new delivery vans. Teamsters General President Sean M. O’Brien called it “the best contract in the history of UPS.”

Tangent

While many appear to be interested in becoming delivery drivers at UPS, new entries in the company typically have to work their way up to the position, according to Bloomberg. An employee typically has to work inside a facility as a package loader for several years. Once they become a driver, they’re given the least desirable shifts and heaviest packages, though they’ll make significantly more than drivers at FedEx Ground or Amazon, which aren’t unionized.

Further Reading

Everyone Wants to Work at UPS After Union Scores $170,000 Driver Pay (Bloomberg)

UPS And Teamsters Avert Strike With New Contract Agreement (Forbes)

Why Yellow Trucking Company Is Shutting Down (Forbes)