Workers at Sandy Springs-based UPS have voted to approve a national labor contract, the company said Tuesday evening, but a smaller contract covering freight workers and some supplemental agreements were rejected.
The master contract covers about 235,000 employees represented by the Teamsters union. The vote count is expected to be completed Wednesday, but early results showed a majority in favor, according to the union.
UPS had worked to negotiate deals in advance of the July 31 expiration date of the contracts to avoid the threat of a strike that could drive customers to competitors like FedEx.
UPS said it is “committed to quickly resolving remaining issues on UPS Freight and supplemental agreements,” adding that it “is confident that these contracts will be resolved soon.” The freight contract covers about 15,000 workers.
The master contract brings wage hikes totaling $3.90 per hour over the five-year term, creates 2,350 full-time jobs over the first three years of the deal and increases the starting wage rate for part-time workers, along with other measures, according to the Teamsters.
But it was a provision that moves 140,000 workers from a company-sponsored health insurance plan to a Teamsters plan that “contributed to some of the supplements being rejected,” the union said.
The union said it will schedule meetings with the company for further negotiations. UPS said it will be “business as usual” while the company and union resolve remaining issues and employees ratify new agreements.