ATLANTA, Georgia: This week, United Parcel Service (UPS) said due to a new five-year contract covering some 340,000 Teamsters-represented workers in the U.S., wages and benefit costs will increase by a 3.3 percent compound annual growth rate over the life of the agreement.
UPS Chief Financial Officer Brian Newman said the new contract expires on July 31, 2028, and 46 percent of wage and benefit costs will hit this year.
Contract-related costs in the second half of 2023 are expected to be some $500 million more than UPS expected, he added.
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