UPS drivers will earn an average of $170,000 in annual pay and benefits at the end of a five-year contract agreement, UPS CEO Carol Tomé said during an earnings call this week.
The executive's comments punctuated the end of a weekslong struggle between UPS and the Teamsters Union which negotiated with the carrier last month to avert a strike and secure a new contract for 340,000 union employees.
"We expected negotiations with the Teamsters to be late and loud, and they were," Tomé said during the call. As a result, UPS slashed its full-year revenue forecasts "primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement," she added.
The deal, which was reached on July 25, will increase full-time workers' compensation to $170,000 from roughly $145,000 over five years, according to UPS' calculations. It will also boost part-time workers' salaries to at least $25.75 per hour, and end mandatory overtime, Tomé told investors on Tuesday.
Online searches for jobs with "UPS" or "United Parcel Service" in the title jumped 50% in the week after the new pay deal was announced, Bloomberg News reported, citing data from Indeed.
By the end of the new contract, full-time UPS delivery drivers will make an average of $49 per hour, which works out to nearly $102,000 per year, assuming a 40-hour workweek, 52 weeks a year.
That places UPS drivers near the same pay grade as software developers, finance directors and physician assistants, who all earn average salaries in the $108,000 - $115,000 range, according to Indeed.
UPS did not immediately respond to CBS MoneyWatch's request for comment about how drivers' projected $170,000 pay and benefits figure was calculated.
The new labor contract should "be ratified in two weeks," with voting ending on August 22, Tomé said.
UPS' deal with the Teamsters is the "single largest private-sector collective bargaining agreement in North America," the union group said in a blog post last month. It comes as unions notch wage increases for aviation workers and less than a year after a court reaffirmed union workers' win at Amazon's Staten Island warehouse.
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