Everyone Wants to Work at UPS After Teamsters Deal

United Parcel Service Inc. (UPS) has seen increased interest in job searches and a surge in online searches related to UPS driver positions since its union secured $30 billion in new money over a five-year contract. According to data shared with Bloomberg News, the online job board Indeed Inc. witnessed a more than 50% increase in searches with "UPS" or "United Parcel Service" in the job title. Additionally, "UPS driver jobs near me" has been a top trending search on Google. UPS spokesperson Jim Mayer attributed this strong interest to media coverage of the tentative agreement with the Teamsters.

To prevent a potential strike, UPS agreed to raise starting wages for part-time workers to $21 an hour and improve working conditions, including adding air conditioning in new vehicles. However, the acceptance of the tentative agreement by union members has yet to be announced; the ratification vote results will be disclosed on August 22. 

While this news has generated enthusiasm among potential UPS employees, it should be noted that becoming a driver at UPS is not an immediate process. Employees generally need to begin by working "inside the building" as package loaders, which are part-time positions with similar benefits to other UPS workers. This allows employees to prove themselves before transitioning into the role of a driver, which can take several years. Moreover, UPS drivers start at the lowest level and typically work routes that involve heavier packages and multiple stops. Despite the challenges, UPS drivers receive higher pay and benefits compared to their counterparts in non-unionized companies like FedEx Ground or Amazon.

It is important to mention that UPS may not be hiring extensively at the moment, as their volumes have been decreasing due to the waning demand caused by the pandemic. However, during peak seasons, UPS has been known to hire as many as 100,000 temporary workers.

Regarding the company's financial outlook, UPS recently lowered its full-year profit forecast, partly due to rising costs associated with the tentative labor agreement. On its earnings call, the company shared some details of the new contract, stating that full-time drivers will make approximately $170,000 in annual pay and benefits by the end of the five-year contract period. Part-time union employees will earn a minimum of $25.75 per hour, in addition to receiving full health care and pension benefits. These figures surpass industry standards.

In summary, UPS has become a sought-after employer since its union secured a generous contract. The increased interest in UPS jobs, especially for driver positions, can be attributed to the improved wages and working conditions outlined in the new agreement. However, becoming a driver at UPS may require employees to first work as package loaders and prove themselves over time. Despite potential challenges, UPS offers higher pay and benefits compared to similar positions at non-unionized companies.   

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