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Global Category Intelligence
Q2 2025
Global Category Intelligence
Q2 2025
Jabil Logistics Update
UPS and Teamsters Reach Agreement
The Teamsters Union announced a tentative agreement with the UPS, averting a strike that was set to commence on August 1st
The leadership team of the union unanimously endorsed the five-year agreement on Tuesday following progress in the negotiations, including:
- Wage increases of $2.75 per hour for full-time and part-time workers this year and $7.50 more per hour over the length of the contract.
- Part-time workers will see wage increases immediately of at least $21 an hour.
- The wage rises are double the gains from the previous five-year contract that was in effect from 2018 and represent a 48% increase for part-timers over the life of the contract.
- Full-time employees will see their average top rate increase to $49 per hour.
The agreement also ends a two-tiered classification for drivers, provides part-timers with longevity raises, adds Martin Luther King Day as a paid holiday off, and ends forced overtime on off days.
Representatives of the UPS Teamsters locals will meet on 31 July to review and recommend the tentative agreement, which will be put to a vote by membership between 3 August to 22 August.
We are also monitoring developments at FedEx following a rejected labor deal. FedEx pilots - who belong to the Air Line Pilots Association - voted against the proposed contract, which was reached in May and endorsed by union leadership. The proposed contract would have provided for a 30% pay increase, as well as a 30% improvement in pension benefits. The major objections from the pilots are not yet clear.
The two sides will reopen negotiations, likely under the supervision of the National Mediation Board.
If the federally mediated negotiations reach an impasse, a union can be given permission to strike. However, the law allows the US President to intervene and instruct “cooling off periods” while a presidential panel produces recommendations as to how to settle the deadlock.
Those hurdles have yet to be cleared and the likelihood of industrial action remains small. We will continue to closely monitor the developments in negotiations and keep you updated on developments.
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