Full-time UPS drivers will make around $170,000 in annual pay and benefits by the end of the five year contract

The CEO of UPS has revealed that under a five-year contract recently reached with the Teamsters Union, drivers are projected to earn an average of $170,000 in compensation, including benefits like healthcare and pensions. This agreement successfully prevented a potential strike.

The agreement, which is currently tentative, applies to around 340,000 employees within the package delivery company. These workers are currently participating in a ratification vote that began on Thursday and is scheduled to conclude on August 22.

CEO Carol Tomé expressed optimism during an earnings call on Tuesday, stating, "We anticipate the ratification of our new labor contract within two weeks."

In light of the labor negotiations' impact on volume and the expenses linked to the tentative agreement, the company has adjusted its full-year revenue and margin forecasts.

The terms of the tentative agreement would lead to a minimum wage increase for part-time workers, with their hourly pay reaching at least $21. Addressing a point of contention during the negotiations, full-time workers are set to earn an average of $49 per hour. Furthermore, the agreement intends to put an end to mandatory overtime on drivers' days off, as outlined in a summary published by the Teamsters Union.