The Teamsters union has successfully secured pay raises for United Parcel Service (UPS) workers, avoiding what could have been one of the most extensive strikes in U.S. history.

According to Teamsters general president Sean O’Brien, UPS has committed to providing $30 billion in new funding as a direct outcome of the negotiations.

O’Brien stated that this agreement sets a groundbreaking standard in the labor movement and elevates the expectations for all workers, NPR has reported.

The tentative five-year contract outlines significant wage increases for existing full and part-time UPS Teamsters.

In 2023, they will receive an additional $2.75 per hour, and over the course of the contract, their hourly pay will rise by $7.50.

Additionally, existing part-time employees will see their wages raised to a minimum of $21 per hour, effective immediately, as confirmed by the Teamsters.

New part-time hires at UPS will start with a wage of $21 per hour, which will increase to $23 per hour as they progress in their roles.

The current collective bargaining agreement, a five-year deal, is set to expire on July 31. This contract is the largest private-sector agreement in North America and covers approximately 340,000 UPS workers.

In anticipation of a potential strike if negotiations failed, local Teamsters chapters had been conducting practice pickets in recent weeks leading up to the end of the month.

While the new contract still needs to be ratified by union members across the country, this significant development marks a crucial step towards ensuring better wages and benefits for UPS workers.

The final decision will be made in August during the ratification process.

Written by staff