UPS Cuts 2023 Revenue Expectations

Revenue declined at UPS in the second quarter and the package delivery company cut its full-year revenue expectations by $4 billion due to a tentative labor contract reached late last month with its 340,000 unionized workers, Michelle Chapman reported for the Associated Press (AP).

Photo Insert: UPS reached a tentative deal with the International Brotherhood of Teamsters, potentially averting a strike that threatened to disrupt package deliveries for millions of businesses and households nationwide.

Shares for the Atlanta company slid more than 5% before the market opened Tuesday.

UPS reached a tentative deal with the International Brotherhood of Teamsters, potentially averting a strike that threatened to disrupt package deliveries for millions of businesses and households nationwide.

Under the agreement, which still needs to be approved by union members, full- and part-time union workers will get $2.75 more per hour in 2023, and $7.50 more by the end of the five-year contract.

The deal includes a provision to increase starting pay for part-time workers — whom the union says are the most at risk of exploitation — from $16.20 per hour to $21 per hour.

The average pay for part-timers had been $20.

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