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UPS drivers will earn an average of $170,000 in annual pay and benefits at the end of a five-year contract agreement, UPS CEO Carol Tomé said during an earnings call this week.

The executive’s comments punctuated the end of a weekslong struggle between UPS and the Teamsters Union which negotiated with the carrier last month to avert a strike and secure a new contract for 340,000 union employees. More than 70% of UPS’ 443,000 employees are represented by the Teamsters’ Union, the company’s website shows. 

“We expected negotiations with the Teamsters to be late and loud, and they were,” Tomé said during the call. As a result, UPS slashed its full-year revenue forecasts “primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement,” she added.

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The deal, which was reached on July 25, will increase full-time workers’ compensation to $170,000 from roughly $145,000 over five years, according to UPS’ calculations. It will also boost part-time workers’ salaries to at least $25.75 per hour, and end mandatory overtime, Tomé told investors on Tuesday.

Online searches for jobs with “UPS” or “United Parcel Service” in the title jumped 50% in the week after the new pay deal was announced, Bloomberg News reported, citing data from Indeed. 

Higher six-figure pay for UPS drivers

By the end of the new contract, full-time UPS delivery drivers will make an average of $49 per hour, which works out to nearly $102,000 per year, assuming a 40-hour workweek, 52 weeks a year. Those employees are guaranteed an eight-hour workday, a UPS spokesperson told CBS MoneyWatch.

Drivers also receive $50,000 in benefits “that include health, welfare and pension contributions,” the spokesperson said. 

That places UPS drivers near the same pay grade as software developers, finance directors and physician assistants, who all earn average salaries in the $108,000 – $115,000 range, according to Indeed.

How to become a UPS driver

The first step is to look for jobs at the UPS website, where you can search by state, county or city.

UPS drivers must be able to lift up to 70 pounds, have a valid driver’s license (although a commercial driver’s license isn’t required) and pass the Department of Transportation physical. You’ll also need “excellent customer service and driving skills” and the legal right to work in the U.S., UPS notes.

After that, applicants can expect to do an interview and background check with the company, according to Insider. If hired, they’ll then go through training and then a probation period.

When will the contract be ratified?

The new labor contract should “be ratified in two weeks,” with voting ending on August 22, Tomé said. 

UPS’ deal with the Teamsters is the “single largest private-sector collective bargaining agreement in North America,” the union group said in a blog post last month. It comes as unions notch wage increases for aviation workers and less than a year after a court reaffirmed union workers’ win at Amazon’s Staten Island warehouse.

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