UPS (NYSE:UPS) has reached a tentative contract with its largest union.
The deliver giant has negotiated a new five-year contact with the International Brotherhood of Teamsters. The deal, which caps negotiations begun in October, increases benefits, starting wages and creates more than 23,000 new full-time jobs at the shipping company, the Gazette-Mail notes.
UPS won concessions to reduce overtime, but saw its right to fire workers based on data from GPS tracking systems reduced.
The contract covers 250,000 workers, who will get a chance to approve it during votes scheduled for June. It takes effect on August 1.
By negotiating a new contract in advance of the prior contract’s expiration, the company avoided a potentially costly strike.
Last week, rival shipper FedEx (NYSE:FDX) announced that it had secured a new seven-year contract to carry Express Mail and Priority Mail for the U.S. Postal Service, beating out UPS, which had said it planned to bid for the contract.
Shares of UPS rose fractionally in Monday morning trading.