UPS and the Teamsters union have come to a tentative agreement over new pay and working conditions.
The express giant had been facing potential strike action by around 340,000 union members when the current agreement expires on July 31.
However, the two groups yesterday announced the "historic" agreement, which includes more full-time jobs, pay increases and new health and safety measures.
The five-year agreement covers US Teamsters-represented employees in small-package roles and is subject to voting and ratification by union members.
Voting on the agreement starts on August 3 and concludes August 22.
“Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers,” said Carol Tomé, UPS chief executive officer.
“This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.”
Teamsters general president Sean O’Brien said: “UPS has put $30bn in new money on the table as a direct result of these negotiations. We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession.
"This contract sets a new standard in the labor movement and raises the bar for all workers.”
