UPS Drivers
by Rockwell Sands @

UPS Drivers Set to Earn $170,000 a Year Following Teamsters Deal

Teamsters deal means full-time UPS drivers may earn up to $170,000 per year at the end of the new labor agreement; total compensation is split between salary and benefits

Following the new labor contract agreement between UPS and the Teamsters Union, UPS drivers are set to earn up to $170,000 per year in salary and benefits by the contract’s end date. This salary range will make UPS drivers some of the highest-paid drivers in the shipping industry and places them in the same salary range as software developers, physician’s assistants, and other white-collar positions in professional services, according to the job listing site Indeed.

It’s Not $170,000 Right Away for All Drivers

According to calculations made by UPS, the deal with the Teamsters will increase full-time workers’ compensation to $170,000 from roughly $145,000 over five years. However, that number doesn’t necessarily come from the total amount that drivers will receive from paychecks.

By the end of the new contract, full-time UPS delivery drivers (who are guaranteed eight-hour work days) will make an average of $49 per hour. Assuming a 40-hour workweek at 52 weeks per year, that works out to nearly $102,000 per year. Outside of their base salary, UPS drivers also receive around $50,000 in benefits that include health, welfare, and pension contributions, according to company spokespeople.

Other Points in the New Contract Agreement

During an earnings call with investors, UPS CEO Carol Tomé said that the deal will also boost part-time workers’ salaries to at least $25.75 per hour. Other main points of the deal include:

  • The addition of air conditioning in UPS delivery vehicles
  • No more forced overtime on days off
  • Receiving Martin Luther King Jr. Day as a holiday for the first time in UPS history

According to Tomé, voting on the agreement ends on August 22nd and the new labor contract should “be ratified” by that time.

Job Applications for UPS Drivers Surge After Teamsters Deal

In a blog post after the deal was announced, the Teamsters Union said that the UPS deal is the “single largest private-sector collective bargaining agreement in North America.”

The deal announcement and the knowledge of the increased drivers’ salaries have resulted in a surge of interest in UPS driving positions. According to Bloomberg research, the job site Indeed saw a 50% increase in job searches with the key terms “UPS” or “United Parcel Service” in the week following the deal’s announcement.

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