The following is an update on the back pay owed to UPS members.

The company expects the back pay to be issued the first pay period of July. This contract was the richest in Teamster history and the back pay just for the nine months between August 1, 2018 and April 29, 2019 is approximately $660 million.

The company is currently calculating back pay for 250,000 employees with various hours worked, multiple classifications and pay rates. Many employees work more than one classification with different pay rates in one week or even within one day. Any time a member works in more than one job in any one day, it triggers a calculation requiring someone to manually calculate the pay rate figures.

The company estimates that there will be over 200,000 manual calculations required to ensure that the back pay is accurate and they will be working on this through June. UPS is keeping us informed and is working to make this happen as quickly as possible.

Agreement Increases Wages, Protects Benefits, Creates New Full-Time Jobs

The five-year contract covering about 250,000 Teamster-represented workers at UPS will take effect at 12:01 a.m. tomorrow, Monday, April 29, after workers in Michigan ratified the last outstanding supplemental agreement.

The national contract will increase wages, protect benefits and create thousands of new full-time jobs. Economic improvements in the contract are retroactive to August 1, 2018. The company has been notified of the ratification and will attempt to implement required raises during the next weekly pay period.

“This contract recognizes our members’ hard work by providing solid wage increases, protecting their health coverage, improving their retirement security and giving part-time workers the chance to advance into long-term careers,” said Denis Taylor, Co-Chair of the National Negotiating Committee and Director of the Teamsters Package Division. “We realize this has been a long process, and we appreciate our members’ patience and support.”

The UPS contract includes wage increases of $4.15 per hour for both full-time and part-time workers over the term of the contract and increases the part-time start rate by $2.50 retroactively to August 1, 2018. All full-time and part-time UPS Teamsters will continue to receive health insurance for the member and their family without paying premiums. The agreement also strengthens grievance enforcement for harassment with a sitting arbitrator and monetary penalties, and a new procedure to make it easier to get on or off the overtime list.

The agreement requires UPS to create 5,000 new full-time jobs during the term of the agreement, including a minimum of 2,000 Article 43 driver jobs, and a new combination driver classification that addresses the changes brought on through the e-commerce revolution.

Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.