At the end of the new five-year contract agreement, full-time UPS drivers are about to earn an average annual salary of $170,000, plus various other benefits. The information was put forward by the CEO of UPS, Carol Tomé, last week at the time of the company’s second-quarter earnings call.
As per the “Great Employer” section of the official website of UPS, the current average annual salary of UPS drivers is $145,000 for small package delivery drivers.
The CEO also added that according to the new contract agreement, every part-time union employee of UPS is about to make at least $25.75 per hour. Apart from that, they will also receive various other benefits related to healthcare and pension.
According to RetailWire.com,
“That’s up about 29% from the $20 hourly rate plus benefits part-timers currently earn after 30 days, according to UPS’ online employer section. Details on the agreement come as the Teamsters union has begun the process of ratifying the tentative agreement that emerged last month as a strike appeared imminent.”
According to several analysts, package pricing must rise to offset the higher labor costs. This benefit will fall on all carrier companies in the logistics industry. Other analysts think that the wage increase will roughly average between 5% and 6% in the first year of the contract.
Furthermore, according to CEO Carol Tomé, with technology-optimized labor, and package flows, UPS has been able to manage its largest quarterly cost reduction on a year-over-year basis in the United States. It seems that UPS’ investments in automated facilities as well as Network planning tools and NTT have enabled the company to gain greater agility.
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