UPS Deal Averting Strike Raises Company Costs, Adds Wage Pressure

The agreement reached by UPS and the Teamsters is a relief for supply-chain managers worried about renewed shipping snarls but an unwelcome development for US employers that hoped upward pressure on wages would be short-lived.

The tentative deal announced Tuesday, which contains $30 billion of new money from UPS over the life of the five-year contract, still has to be ratified by about 340,000 union members.