The wage increase came after the United States experienced the most significant period of inflation in the past forty years. As rising costs of living squeezed household budgets, labor tensions flared, leading to union drives at Starbucks and other companies and strikes across the country.
Threats by the Teamsters union to strike have hurt UPS in recent weeks, as customers diverted about 1 million packages a day to competing companies, costing the company about $200 million in lost revenue.
UPS has the largest union membership of any U.S. company and a history of offering relatively high compensation. The company has now reached an agreement with the Teamsters union, which represents more than 300,000 UPS employees, to raise starting wages for part-time workers and improve working conditions. Before the new agreement, the company said drivers earned an average of $95,000 annually, or about $42 per hour, and received an additional $50,000 in benefits, resulting in a $145,000 package.
Which has now been raised to $170,000, or approximately 60 million forints.
Economists are closely monitoring the wage increase, as there is growing concern that it may contribute to the ongoing inflation problem.
UPS warned that the company's adjusted annual operating margin is now expected to be 11.8 percent, compared to the previously planned 12.8 percent, as a result of the impact of wage increases included in the labor agreement, as well as lower shipping due to economic weakness. conditions.
Cover image credit: Alan Thornton via Getty Images
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