UPS is hit by wave of job applications after unions won right to $170,000 salary

UPS is hit by wave of job applications after unions won right to $170,000 salary

UPS has been hit by a wave of job applications thanks to a new union contract that will see its drivers paid $170,000-a-year after five years service.

The deal, struck in July on behalf of the union’s 340,000 members to avoid a strike, has seen searches for UPS – or its full name United Parcel Service – rocket by 50 percent on job search site Indeed.

Drivers will be paid a total of $170,000 in salary and other benefits. 

One of Google’s top search trends since the deal was reached has been ‘UPS driver jobs near me’ and searches for similar companies or just the phrase ‘delivery driver’ did not show similar increases.

But attaining the impressive salary is no easy feet, with workers only receiving it after five years with the company and a lot of very hard work. 

UPS has seen a new wave of job applications after the shipping giant reached a provisional deal in late July with its 340,000 person-union, avoiding a potentially crippling strike

Anyone wishing to apply must first start in one of UPS’s giant packing warehouses. 

The jobs pay significantly less and are part time, though part of the agreement gave part-time workers a starting salary of $21 an hour plus benefits. Getting out of the buildings can take several years, according to the Boston Globe

And even when drivers make it out on the road, it’s far from plain-sailing.  

New drivers aren’t immediately given high salaries or cushy hours, either, as beginners often take heavier packages, make more stops and be assigned for shifts outside the typical Monday to Friday, 8-to-5 hours.

The pay and benefits are still significantly better than non-unionized delivery services like FedEx and Amazon. 

‘We have seen strong interest in UPS jobs as a result of media coverage of the tentative agreement with the Teamsters,’ Jim Mayer, a UPS spokesman, told Bloomberg News.

There may be a wait for the company to make any hirings, as the end of the pandemic has seen deliveries lessen. 

However, it’s still possible they could be part of the holiday rush, when UPS adds as many as 100,000 part-time employees.

The $30 billion agreement was announced after the two parties came back to the negotiating table after contentious negotiations broke down earlier this month. 

Teamsters President Sean O’Brien in a statement: ‘This contract sets a new standard in the labor movement and raises the bar for all workers.’

Some may not realize that getting to the status of a delivery driver is not as easy, as all UPS employees begin working on the packing floor inside their hubs

UPS CEO Carol Tomé (pictured) said in the statement: ‘Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers’

Teamsters President Sean O’Brien (pictured) in a statement: ‘This contract sets a new standard in the labor movement and raises the bar for all workers’

UPS and Teamsters reached a tentative deal with its 340,000 person-union, avoiding a potentially crippling strike

The negotiators previously reached preliminary agreements on certain topics but could not find common ground on various issues. 

‘Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers,’ UPS CEO Carol Tomé said in the statement.

‘We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession,’ O’Brien added. 

‘This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong,’ Tomé said. 

The labor stoppage could have occurred as early as next week and could have disrupted logistics nationwide for  both businesses and households.

Under the tentative agreement, both full and part-time UPS union workers would get $2.75 more per hour in 2023, and $7.50 more per hour over the length of their five-year contract. 

If the Teamsters vote no – a strike may still occur but it would be pushed back and begin after the August 1 strike deadline, closer to late August

‘We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession,’ O’Brien said  

The $30 billion agreement was announced after the two parties came back to the negotiating table after contentious negotiations broke down earlier this month 

The agreement also includes a clause to increase starting pay for part-time workers, which the union said were the most  had called the susceptible employees at the company to be exploited or ignored. 

It states starting pay for part-time workers would increase nearly $5 from $16.20 today to $21 per hour.

Teamsters and the shipping giant have managed to reach a middle ground on some of conditions, including: Installing air conditioning in its vehicles, a day off for Martin Luther King Jr Day and scrapping a two tier wage system for driver (meaning full time motorists would get paid more per hour than part timers). 

But on July 5, negotiations between Teamsters and UPS fell apart as they could come to an agreement about raising pay for part time staff – who currently get $16.20 an hour.

In 2022, UPS gave back $8.6 billion to his shareholders and is estimated to return $8.4 billion again to them this year.

UPS released a statement detailing how Teamsters were refusing to continue talks despite the end being ‘in sight’.

The delivery company said: ‘The Teamsters have stopped negotiating despite historic proposals that build on our industry-leading pay.’

The negotiators previously reached tentative agreements on certain topics but could not find common ground on various issues, such as pay for part-time workers who comprise half of the union employees 

The strike would have only exacerbated the lingering and potentially lengthening supply chain woes

O’Brien – who leads one of the world’s largest unions with 1.2 million members – revealed how 95 percent of contract negotiations have been completed but he wants the package deliver company UPS to adequately pay all of its workers, including part-time employees. 

O’Brien released a statement that said: ‘This multi billion-dollar corporation has plenty to give American workers – they just don’t want to.

‘UPS had a choice to make, and they have clearly chosen to go down the wrong road.’ 

The planned strike would have meant huge delays and higher prices for parcels across the US.

UPS is the US’s biggest private shipping company, following closely behind the US Postal Service (USPS) who is the largest delivery company overall.

UPS has shipped 5.2 billion packages in 2022 alone, dealing with a quarter of US parcels.

In comparison, rival shipping company FedEx only dealt with 4.1 billion parcels that same year.

Although, USPS and FedEx would be able to alleviate some of the UPS shortfall if the strike does happen, experts say these logistic networks are already at capacity as is, meaning they can’t pick up all 24.3 million of UPS’ daily deliveries that UPS strikes would leave.

President of global e-commerce at shipping tech company Pitney Bowes, Gregg Zegras told Vox: ‘There’s no good that comes from this for the consumer. There’s no good that comes from this for the merchants.

‘And there’s no good that comes from other players in the industry.’

Along with delays receiving food or clothes delivered – it would also cause significant issues for businesses, as 40 percent of UPS shipments go to retail stores.

Regarding the lingering and potentially lengthening supply chain woes, Thomas Goldsby logistics chairman in the Supply Chain Management Department at the University of Tennessee told The Associated Press: ‘Something’s got to give.

‘The python can’t swallow the alligator, and that’s going to be felt by all of us.’

Read More

Laisser un commentaire

Your email address will not be published.