Sawdah Bhaimiya
Updated Wed, August 9, 2023
Indeed said more users had been searching for UPS delivery-driver roles after the wage-boost announcement.NurPhoto / Getty Images
Jobs as UPS delivery drivers are in hot demand after its union secured a wage boost for workers.
Indeed said it had seen a 50% rise in searches for "UPS" and "United Parcel Service," per Bloomberg.
UPS CEO Carol Tomé said drivers would make about $170,000 at the end of the new five-year contract.
There's been a spike in interest for UPS delivery-driver roles on the job-listing site Indeed after the company's union secured a pay rise for employees above industry standards, Bloomberg reported Tuesday.
Indeed observed a 50% rise in users searching "UPS" or "United Parcel Service" in its job title section a week after the union reached a deal, according to data viewed by Bloomberg. Searches for "delivery driver" generally did not increase, signaling a specific interest in UPS.
The increased interest follows UPS coming to a tentative agreement with the Teamsters union last month about employee wages and benefits. The union represents more than 340,000 UPS delivery drivers and package handlers.
To avoid a worker strike, UPS agreed on July 25 to provide $30 billion in new money over a five-year period to boost wages, benefits, and working conditions for employees. It set a minimum wage for part-time workers at $21 an hour and full-time workers at $49 an hour on average, making them the "highest paid delivery drivers in the nation," the union said. This deal has yet to be approved by union members.
UPS CEO Carol Tomé said on an earnings call this week that full-time drivers would earn about $170,000 annually in salary and benefits by the end of the five-year period. These drivers currently earn, on average, about $95,000 a year with a further $50,000 in benefits.
The company said part-time union employees would earn $25.75 an hour as well as healthcare and pension benefits by the end of the contract.
Teamsters UPS union members were preparing to strike if an agreement was not reached. UPS' proposal has yet to be approved by union members.
UPS and Indeed did not immediately respond to a request for comment.
UPS drivers’ new $170k per year deal shows that unions (and Joe Biden) may just save the middle class after all
Chloe Berger
Updated Wed, August 9, 2023
Dogs might not be so happy to know that their sworn enemies are about to make salaries in the high six figures. After contract negotiations this summer, full-time drivers for UPS saw their salaries boosted from $145,000 to $170,000 annually including benefits, according to data shared by the shipping company on a recent call.
While not everyone is winning as much as these UPS workers, this represents a symbolic triumph for unions, the middle class and the labor-friendly White House (excluding German Shepherds, in the case of Joe Biden’s noshing pet, “Champ”), as it’s a testament to collective efforts to boost the middle class for the first time in a generation—or two. The public has noticed—jobs site Indeed reported a 50% surge in searches for “UPS” or “United Parcel Service” within a week of the new contract, Bloomberg reported.
Biden’s famous adoration of ice cream has really only been paralleled or eclipsed by his love for this middle class. His campaign premise to revive the average American quickly led to a new word: Bidenomics, a portmanteau (much like Obamanomics, Reaganomics before, or Hobama as of late), that refers to, in Biden’s own words: “building an economy from the middle out and the bottom up, not the top down.”
In that vein, Biden hasn’t just been governing in opposition to his former opponent President Trump, but also the Republican hero Ronald Reagan, the onetime union leader during the last Hollywood dual strike who decades later slashed taxes for the wealthy as part of what became known as trickle-down economics. Tax breaks to the rich helped the rich, of course, but data has progressively mounted that they didn’t help the middle class whose wages stagnated for decades, barely keeping pace with inflation.
Now it’s Biden’s turn at the wheel, and drivers are getting paid famously. Rather than building from the top down, Joe’s strategy of bottom up and middle out, which can be seen in his push to invest in manufacturing jobs and record-breaking wage growth for those in historically lower-compensated positions. Of course, this doesn't come without accusations from the now neglected rich, which was faring quite well the last time fanny packs were big. The waning glory days of the wealthy is deemed the “richcession,” where the economy may be growing overall but just doesn’t feel so good anymore for those at the upper echelon. Those with six-figure incomes sometimes report feeling like they need more to be financially comfortable, and even if they’ve continued to win the economy by nature of their riches, they sometimes feel anxious—but that dog won’t hunt these days.
Biden and unions deliver on their promise
The largest union in the nation, Teamsters, recently bargained for a historical contract on behalf of UPS. While not every worker is getting that hefty salary, part-time workers also won a pay raise of around $21 hourly, and employees were finally able to have better conditions like air conditioning. “This contract sets a new standard in the labor movement and raises the bar for all workers,” said Teamsters General President Sean M. O’Brien in a statement.
This UPS victory might be the clearest sign yet that Biden’s plan to invest heavily in the middle and lower class has a real-life impact on wage gains. But the success is not Biden’s alone, rather it’s also a signal regarding the influence of a strong union backing. Threatening to strike if their demands were not met, the increasingly consumer-dependent America could not stand to be without its millions of packages every month.
To be sure, one historic contract does not by itself correct the long-term trend against union membership—or a middle class shrinking for decades. Despite increasingly favorable sentiment for unions, actual union membership is the lowest on record. But it does show that unions can get the job done, and signals to vulnerable, oft-unionized workers in white-collar fields that protections can get them the benefits they are looking for.
But there is reason to believe in a turning of the tide. The hottest summer in 100,000 years has also been named the summer of strikes, as multiple unions in the entertainment world have joined the fight for better wages (and A.I. regulations). Next up could be a historic triple strike in Detroit as the United Auto Workers, a historic union that has brand-new leadership after a series of scandals, is determined to win a new contract from the Big Three automakers..
While UPS projects low revenue this quarter, their new salary for workers has attracted many workers. Blue-collar jobs have recently struggled to attract Gen Z employees and others due to poor working conditions and a lack of fair pay. The future for the middle class may have arrived at America’s doorstep, and they wear brown shorts and sometimes spar with your dog while bringing you the package you’ve been waiting for.
This story was originally featured on Fortune.com
Chloe Berger
Updated Wed, August 9, 2023
Dogs might not be so happy to know that their sworn enemies are about to make salaries in the high six figures. After contract negotiations this summer, full-time drivers for UPS saw their salaries boosted from $145,000 to $170,000 annually including benefits, according to data shared by the shipping company on a recent call.
While not everyone is winning as much as these UPS workers, this represents a symbolic triumph for unions, the middle class and the labor-friendly White House (excluding German Shepherds, in the case of Joe Biden’s noshing pet, “Champ”), as it’s a testament to collective efforts to boost the middle class for the first time in a generation—or two. The public has noticed—jobs site Indeed reported a 50% surge in searches for “UPS” or “United Parcel Service” within a week of the new contract, Bloomberg reported.
Biden’s famous adoration of ice cream has really only been paralleled or eclipsed by his love for this middle class. His campaign premise to revive the average American quickly led to a new word: Bidenomics, a portmanteau (much like Obamanomics, Reaganomics before, or Hobama as of late), that refers to, in Biden’s own words: “building an economy from the middle out and the bottom up, not the top down.”
In that vein, Biden hasn’t just been governing in opposition to his former opponent President Trump, but also the Republican hero Ronald Reagan, the onetime union leader during the last Hollywood dual strike who decades later slashed taxes for the wealthy as part of what became known as trickle-down economics. Tax breaks to the rich helped the rich, of course, but data has progressively mounted that they didn’t help the middle class whose wages stagnated for decades, barely keeping pace with inflation.
Now it’s Biden’s turn at the wheel, and drivers are getting paid famously. Rather than building from the top down, Joe’s strategy of bottom up and middle out, which can be seen in his push to invest in manufacturing jobs and record-breaking wage growth for those in historically lower-compensated positions. Of course, this doesn't come without accusations from the now neglected rich, which was faring quite well the last time fanny packs were big. The waning glory days of the wealthy is deemed the “richcession,” where the economy may be growing overall but just doesn’t feel so good anymore for those at the upper echelon. Those with six-figure incomes sometimes report feeling like they need more to be financially comfortable, and even if they’ve continued to win the economy by nature of their riches, they sometimes feel anxious—but that dog won’t hunt these days.
Biden and unions deliver on their promise
The largest union in the nation, Teamsters, recently bargained for a historical contract on behalf of UPS. While not every worker is getting that hefty salary, part-time workers also won a pay raise of around $21 hourly, and employees were finally able to have better conditions like air conditioning. “This contract sets a new standard in the labor movement and raises the bar for all workers,” said Teamsters General President Sean M. O’Brien in a statement.
This UPS victory might be the clearest sign yet that Biden’s plan to invest heavily in the middle and lower class has a real-life impact on wage gains. But the success is not Biden’s alone, rather it’s also a signal regarding the influence of a strong union backing. Threatening to strike if their demands were not met, the increasingly consumer-dependent America could not stand to be without its millions of packages every month.
To be sure, one historic contract does not by itself correct the long-term trend against union membership—or a middle class shrinking for decades. Despite increasingly favorable sentiment for unions, actual union membership is the lowest on record. But it does show that unions can get the job done, and signals to vulnerable, oft-unionized workers in white-collar fields that protections can get them the benefits they are looking for.
But there is reason to believe in a turning of the tide. The hottest summer in 100,000 years has also been named the summer of strikes, as multiple unions in the entertainment world have joined the fight for better wages (and A.I. regulations). Next up could be a historic triple strike in Detroit as the United Auto Workers, a historic union that has brand-new leadership after a series of scandals, is determined to win a new contract from the Big Three automakers..
While UPS projects low revenue this quarter, their new salary for workers has attracted many workers. Blue-collar jobs have recently struggled to attract Gen Z employees and others due to poor working conditions and a lack of fair pay. The future for the middle class may have arrived at America’s doorstep, and they wear brown shorts and sometimes spar with your dog while bringing you the package you’ve been waiting for.
This story was originally featured on Fortune.com
UPS and other shippers have a new vulnerability: their workers
Alexis Keenan
·Reporter
Tue, August 8, 2023
The load is getting heavier for package-delivery companies as they wrestle with higher worker pay while demand shrinks across their industry.
The latest reminder of those twin challenges came Tuesday when United Parcel Service (UPS) reported a sharp drop in revenue and profit during the second quarter.
The shipping giant pared its annual revenue outlook and operating margin, citing the costs associated with a new labor agreement that would sweeten pay and benefits for roughly 340,000 workers.
The new contract between UPS and the International Brotherhood of Teamsters averted a potential strike that could have cost the US economy billions. The union said the deal was worth $30 billion. Rank-and-file members are voting this month to ratify the pact.
UPS CEO Carol Tomé told analysts during a call Tuesday that the second quarter was "challenging," and said the new contract was a "win-win" for both parties. She also said the company's drawn-out negotiations with the union caused it to lose customers, some of which have returned.
UPS CEO Carol Tomé. (Photo by JIM WATSON/AFP via Getty Images)
"One thing that was very important for Teamster leadership was to front load some of the wage inflation and we agreed to do that," Tomé said. "So that does put a little pressure on the margin...We'll have a bit of pressure for the next year, through August of next year, but then the inflation is very manageable."
UPS stock was down roughly 1% in midday trading.
UPS isn’t the only shipper feeling such pressures as the industry adjusts to waning demand that peaked early in the pandemic.
Union pilots at FedEx (FDX) are pressing for a significant step up in pay, and trucking company Yellow (YELL), blamed the same union – the International Brotherhood of Teamsters – for propelling it into bankruptcy earlier this week.
Yellow Corp. filed for bankruptcy this week. (AP Photo/George Walker IV)
"What we're seeing now is actually workers exercising their ability to demand more," Patricia Campos-Medina, executive director of Cornell University’s School of Industrial and Labor Relations Worker Institute. "So they are a liability for companies because workers now are not willing to believe that a company cannot take on less profits by giving them more wages."
Teamsters President Sean O’Brien has made it clear the union has its sights on Amazon (AMZN) too.
In July, O’Brien told Bloomberg that he planned to use the agreement reached with UPS as a template to attract Amazon delivery workers and to "set the tone" for worker benefits.
Amazon doesn't hire its drivers directly and instead uses drivers employed by third party companies.
Sean O'Brien, general president of the International Brotherhood of Teamsters. (AP Photo/Brynn Anderson)
"UPS has one of the best contracts now, and that emboldens workers to ask Amazon to do better, to ask FedEx to do better," Campos-Medina said.
Brian Newman, UPS executive vice president and chief financial officer, told analysts the company saw more customer loss than anticipated as noise levels around its labor negotiations increased.
During the quarter, UPS's total average daily volume was down 9.9% and in June volumes fell 12.2%.
Increased labor costs and a softening economy proved more consequential for Yellow.
After failed negotiations with the Teamsters in July, the company laid off all 30,000 of its workers, including 22,000 union members, and filed for bankruptcy.
In a federal lawsuit against the Teamsters, Yellow blamed the union for causing negotiation delays that kept Yellow from carrying out a financial restructuring plan.
In its bankruptcy petition, Yellow reported total assets of $2.15 billion falling short of total debt of $2.59 billion. The delivery service received a $700 million loan in 2020 under a pandemic government relief program.
At FedEx, negotiations are underway between the company and its 5,200 unionized pilots, represented by Air Line Pilots Association. The pilots turned down the company’s latest offer for a 30% pay bump and 30% increases in pension benefits.
In its fourth quarter, the company's most recent report, it posted revenue of $21.93 billion, down from $24.4 billion in the same quarter last year.
Alexis Keenan is a reporter for Yahoo Finance. Follow Alexis on Twitter @alexiskweed.
Alexis Keenan
·Reporter
Tue, August 8, 2023
The load is getting heavier for package-delivery companies as they wrestle with higher worker pay while demand shrinks across their industry.
The latest reminder of those twin challenges came Tuesday when United Parcel Service (UPS) reported a sharp drop in revenue and profit during the second quarter.
The shipping giant pared its annual revenue outlook and operating margin, citing the costs associated with a new labor agreement that would sweeten pay and benefits for roughly 340,000 workers.
The new contract between UPS and the International Brotherhood of Teamsters averted a potential strike that could have cost the US economy billions. The union said the deal was worth $30 billion. Rank-and-file members are voting this month to ratify the pact.
UPS CEO Carol Tomé told analysts during a call Tuesday that the second quarter was "challenging," and said the new contract was a "win-win" for both parties. She also said the company's drawn-out negotiations with the union caused it to lose customers, some of which have returned.
UPS CEO Carol Tomé. (Photo by JIM WATSON/AFP via Getty Images)
"One thing that was very important for Teamster leadership was to front load some of the wage inflation and we agreed to do that," Tomé said. "So that does put a little pressure on the margin...We'll have a bit of pressure for the next year, through August of next year, but then the inflation is very manageable."
UPS stock was down roughly 1% in midday trading.
UPS isn’t the only shipper feeling such pressures as the industry adjusts to waning demand that peaked early in the pandemic.
Union pilots at FedEx (FDX) are pressing for a significant step up in pay, and trucking company Yellow (YELL), blamed the same union – the International Brotherhood of Teamsters – for propelling it into bankruptcy earlier this week.
Yellow Corp. filed for bankruptcy this week. (AP Photo/George Walker IV)
"What we're seeing now is actually workers exercising their ability to demand more," Patricia Campos-Medina, executive director of Cornell University’s School of Industrial and Labor Relations Worker Institute. "So they are a liability for companies because workers now are not willing to believe that a company cannot take on less profits by giving them more wages."
Teamsters President Sean O’Brien has made it clear the union has its sights on Amazon (AMZN) too.
In July, O’Brien told Bloomberg that he planned to use the agreement reached with UPS as a template to attract Amazon delivery workers and to "set the tone" for worker benefits.
Amazon doesn't hire its drivers directly and instead uses drivers employed by third party companies.
Sean O'Brien, general president of the International Brotherhood of Teamsters. (AP Photo/Brynn Anderson)
"UPS has one of the best contracts now, and that emboldens workers to ask Amazon to do better, to ask FedEx to do better," Campos-Medina said.
Brian Newman, UPS executive vice president and chief financial officer, told analysts the company saw more customer loss than anticipated as noise levels around its labor negotiations increased.
During the quarter, UPS's total average daily volume was down 9.9% and in June volumes fell 12.2%.
Increased labor costs and a softening economy proved more consequential for Yellow.
After failed negotiations with the Teamsters in July, the company laid off all 30,000 of its workers, including 22,000 union members, and filed for bankruptcy.
In a federal lawsuit against the Teamsters, Yellow blamed the union for causing negotiation delays that kept Yellow from carrying out a financial restructuring plan.
In its bankruptcy petition, Yellow reported total assets of $2.15 billion falling short of total debt of $2.59 billion. The delivery service received a $700 million loan in 2020 under a pandemic government relief program.
At FedEx, negotiations are underway between the company and its 5,200 unionized pilots, represented by Air Line Pilots Association. The pilots turned down the company’s latest offer for a 30% pay bump and 30% increases in pension benefits.
In its fourth quarter, the company's most recent report, it posted revenue of $21.93 billion, down from $24.4 billion in the same quarter last year.
Alexis Keenan is a reporter for Yahoo Finance. Follow Alexis on Twitter @alexiskweed.
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