UPS Freight avoids strike of 11,000 drivers, but not everyone is happy

UPS Freight announced Sunday evening that a five-year employment agreement with its employees was ratified. Teamsters represent the 11,600 UPS Freight workers.

"We will resume normal operation and will immediately accept new volume from UPS Freight customers," UPS said in a statement to Business Insider.

The transfer of this agreement avoids a strike that would have stopped UPS shipping. The last time UPS saw a work stoppage, was in 1997.

According to Teamsters, 84% of UPS freight workers voted in the association. 70 percent voted yes for the contract after several months of negotiation.

Most consumers do not interact with UPS Freight, moving goods within the supply chain and separated from the small package that provides deliveries to people's homes. UPS Freight moved 2.8 billion pounds of goods in the quarter, reported FreightWaves.

While UPS Freight is not coming straight to your home, a workstop in that section will still achieve the prices of your holiday articles, we reported last week. Sender would not be able to deliver goods on time and had to find pricier, last minute alternatives in case of strike.

Not all UPS freight workers satisfied

UPS freight workers told Business Insider that the contract did not provide adequate protection against UPS Freight hiring subcontractors who are not professional and usually paid less than full-time employees.

They also said that they have noticed that their benefits are reduced with each contract negotiated for workers on behalf of Teamsters.

Milwaukee-based Curt Siekert, who has been a 1[ads1]3-year UPS Freight Driver, said that he and his colleagues used to receive 401 (k) matching health insurance coverage during workouts, and other provisions. Now he said that their employment contracts do not cover those benefits.

There is also a multiple wage structure in this contract that allows employees to start at a rate that is close to what more senior employees do. For example, client workers begin to get a $ 2 increase, while workers who have been with UPS for 36 or 48 months only receive a $ 0.50 increase.

Read more: A day in the life of a NYC Coca-Cola truck driver, who will work at 4 o'clock, spending his morning on 175 pound carts full of bottles through Penn Station [19659002] "The contract fits quite a lot to the new employees, "said Tanya Finley, a UPS Freight employee in Orlando, Florida, Business Insider.

UPS estimates that freight drivers are among the most well-paid in the industry. A UPS Freight Driver who has been with the company for 48 months earns 72 cents per kilometer, according to the latest contract. Truckers usually earn between 28 and 40 cents per kilometer.

"We are pleased that the UPS Freight Agreement has been ratified," said UPS in the e-mail. "It is an agreement that rewards our employees for their contribution to the company's success, while UPS can remain competitive."

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