UPS and Teamsters Have Agreed to Extend Their Contract

United Parcel Service Inc. and the Teamsters agreed to extend their current labor contract past its July 31, 2018 expiration to wrap up 38 supplemental accords with locals. As of this moment, the extension doesn’t have an end date, but negotiators expect to conclude all talks within two months and the company and union officials reached a tentative master agreement about three weeks ago. Sealing the labor contract and averting a strike is crucial for UPS’s efforts to compete with FedEx Corp., which uses ground-delivery drivers who aren’t unionized. Provisions of the new contract, including a $4.15 raise over the five-year agreement, would be retroactive to Aug. 1. Delivery drivers will make “just north” of $40 an hour in August 2022 under the new pact. The agreement also adds a new class of drivers who would work weekends, allowing current delivery workers to return to Monday-Friday schedules. The master agreement, which covers about 250,000 workers, must be voted on along with the supplemental accords.