UPS Rising News

Tentative Contract Provides Full-Time Workers with a More Secure Future

“The pension-contribution increase is a real shot in the arm and the fact that we have a pension when the vast majority of workers don’t have one illustrates how fortunate we are. The wage increases are solid, especially when we top out at more than $40 an hour. And the union negotiating more full-time jobs in a drastically changing industry is a great achievement.”
–RICK POHLIG, package car driver and 30-year UPS employee, Local 676, Collingswood, New Jersey

The tentative National Master UPS Agreement provides full-time workers with a more secure future, including increased wages and improved health and welfare and pension benefits.

Here’s a summary of the proposed improvements:

ARTICLE 41: WAGES
General Wage Increase (GWI):

  • August 1, 2018: $.70
  • August 1, 2019: $.75
  • August 1, 2020: $.80
  • August 1, 2021: $.90
  • August 1, 2022: $1.00

A total $4.15 increase as of August 1, 2022.

The members demanded that there be no split wage increases; there are no split wage increases in this
contract.

Increased Progression Rates:
New Article 41 Section 2 progression rates for Regular Package Car Drivers (RPCD), Feeders and other full-time jobs (excluding Air Drivers, Article 43 jobs, or jobs covered under Article 41 Sections 3, 4 or 6):

-Start: $21.00 (a $2.25 increase effective August 1, 2018)
-Twelve (12) months: $23.00 (a $3.50 increase effective August 1, 2018)
-Twenty-four (24) months: $24.00 (a $3.00 increase effective August 1, 2018)
-Thirty-six (36) months: $28.75 (a $3.75 increase effective August 1, 2018)
-Forty-eight (48) months: Top Rate

The top rate throughout the country will exceed forty dollars ($40.00) per hour as of August 1, 2022. There is some variance in the RPCD top rate in the various Supplements; these top rates were established in the Regional Agreements prior to the creation of the National Master UPS Agreement in 1979.

If you are a driver in progression but red circled at a rate higher than the new progression rates, you will be eligible for the GWI on August 1, and will make no less than the new progression rates going forward.

Section 3–New progression for 22.3 Inside/Inside employees:
-Start: $16.00
-Twelve (12) months: $17.00
-Twenty-four (24) months: $18.00
-Thirty-six (36) months: $21.00
-Forty-eight (48) months: Top Rate

The top rate is currently $30.64 and will increase to $34.79 in accordance with the GWIs.

If you are an employee in progression but red circled at a rate higher than the new progression, you will be eligible for the GWI on August 1, and will make no less than the new progression rates.

Section 4–Progression for the new 22.4 classification:
-Start: $20.50
-Twelve (12) months: $21.25
-Twenty-four (24) months: $22.75
-Thirty-six (36) months: $25.00
-Forty-eight (48) months: Top Rate

The top rate is currently $30.64 and will increase to $34.79 in accordance with the GWIs.

If you are a seniority part-time employee on August 1, 2018 at a rate higher than the new progression, and subsequently take a 22.4 driver job, you will be red circled at your higher part-time rate until the 22.4 progression passes that rate.

Any part-time employee performing cover-type work in a Supplement, Rider or Addendum who bids into a 22.4 driver job will be treated the same as if he or she entered into a Regular Package Car Driver job under Article 41, Section 2 (c) for progression credit and red circle purposes.

Section 6–Improved pay and progression for mechanics:
-Start: 85% of the current top rate
-Twelve (12) months: 90% of the current top rate
-Twenty-four (24) months: Top Rate

ARTICLE 34: HEALTH and WELFARE and PENSION

  • Contributions of $5.00 per hour over the life of the agreement, $1.00 per year.
  • Enhanced benefits for about 30,000 former C-6 (now U-2) participants in dental, life insurance and short-term disability.

The contract provides for a $5.00 per hour increase to the regional and/or local benefit funds. $1.00 per hour for each year of the agreement.* Each benefit fund determines whether the new money will result
in an increase in the benefits it provides.

UPS/IBT Pension Plan: Effective January 1, 2020, the 35-year pension at any age will increase to $4,300 per month; for 30 years at any age, the increase will be to $3,800 per month plus $100 per year over 30 up to $4,300.

ARTICLE 22: UPS must create 5,000 new full-time jobs during the agreement, including 2,000 sleeper team jobs and jobs associated with the new 22.4 Combination Driver classification.

*The average UPS contribution for full-time employee’s health and welfare and pension is $22.14 per hour.

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