UPS Reaches Tentative Labor Deal to Avoid Teamsters Strike (1)

United Parcel Service Inc. reached a tentative agreement to renew a five-year labor contract with the Teamsters union, staving off a possible strike as soon as next week that could have paralyzed shipments throughout the US and beyond.

The provisional deal, which needs to be ratified by the Teamsters’ 340,000-strong membership in a vote next month, could be a good omen for negotiations between labor and management across several key industries. The UPS negotiations are a key test of unionized workers’ leverage at a time when wage growth is outpacing inflation.

WATCH: UPS and the Teamsters have a tentative deal.

Source: Bloomberg

Teamsters President Sean O’Brien cheered the deal, ...