Parcel delivery giant United Parcel Service Inc (NYSE:UPS) (UPS) has seen off threats of strikes after workers overwhelmingly accepted a new five-year labour deal from the company.
Some 86.3% of Teamsters union members who voted backed the deal, which will see average driver salaries lifted to around $170,000 from roughly $140,000.
They will also be granted an extra day of annual leave, more healthcare and benefits and see an end to forced overtime.
“This contract will improve the lives of hundreds of thousands of workers,” Teamsters general president Sean M. O’Brien said.
“Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry.
“This is the template for how workers should be paid and protected nationwide, and non-union companies like Amazon better pay attention.”
Some 340,000 UPS workers will benefit from the new deal, according to the union, which comes after months of negotiation with the world’s largest package delivery firm.