UPS Union Workers Winning 55% Raises to Pressure FedEx on Pay

The raises won by United Parcel Service Inc. package handlers are going to put FedEx Corp. in a bind.

While the salaries that unionized UPS drivers will make under the tentative five-year agreement have grabbed headlines — ones with a few years experience could earn nearly $50 an hour — the bigger problem for FedEx might be that workers in sorting centers are getting even bigger pay hikes, with some increases hitting 55%.

These employees, who are often part-time, have already been difficult for FedEx to recruit. During the pandemic, the company had to run facilities at partial capacity, which ...