Transportation

UPS Agrees to Ax Two-Tier Wage System in Win for Teamsters

Delivery trucks parked outside a UPS hub in the Brooklyn borough of New York.

Photographer: Paul Frangipane/Bloomberg
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United Parcel Service Inc. has agreed to end a dual wage system for delivery drivers in its next contract with the International Brotherhood of Teamsters, dramatically lowering the chances of a nationwide strike when the current labor agreement expires at the end of July.

The Teamsters announced the tentative pact on Twitter Saturday evening, adding they also persuaded UPS to end a mandatory overtime policy for unscheduled workdays and provide Martin Luther King, Jr. Day as a paid holiday.