The Teamsters union reached a deal with United Parcel Service Inc (NYSE: UPS) in what the package delivery company is calling a "win-win-win agreement."
What Happened: The International Brotherhood of Teamsters, which represents approximately 330,000 UPS employees across the U.S., reached a tentative collective bargaining agreement with the company on Tuesday.
"Together, we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers," said Carol Tomé, CEO of UPS.
"This agreement continues to reward UPS's full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong."
The agreement is set to span five years and will help to create more full-time jobs for workers and raise wages. The deal also includes several workplace protections and improvements.
Those improvements include air conditioning, a company holiday on Martin Luther King Jr. Day for the first time and no forced overtime on days off for drivers, according to the Teamsters.
"Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits. Teamster labor moves America. The union went into this fight committed to winning for our members. We demanded the best contract in the history of UPS, and we got it," Teamsters General President Sean M. O'Brien said in a statement.
What's Next: The contract between the two parties was set to expire on July 31. Teamster representatives are set to review and recommend the tentative agreement July 31, according to the union, and members will vote on the contract between Aug. 3-22.
UPS Teamsters workers previously said they would strike if a deal could not be reached by the end of the month.
UPS shares traded higher on news of the deal as the strike would have likely caused a significant setback for UPS.
UPS Price Action: UPS shares were up 1.52% at $191.17 at the time of publication, according to Benzinga Pro.