The United Parcel Service Inc. (Atlanta) warned its customers last week regarding a potential service disruption. About 11,600 UPS Freight workers, part of the International Brotherhood of Teamsters union, had threatened to go on strike due to a labor dispute.
The union voted yesterday in favor of a new proposed contract, avoiding a strike that could have had major implications during this holiday shopping season.
Prior to the vote, UPS had taken precautions by ceasing to accept new pickups and emptying its network of freight by Friday, Nov. 9, according to Fortune, and UPS Freight picked up heavy shipments until Nov. 7, only guaranteeing delivery of ground freight through Nov. 8.
The dispute originated because the Teamsters ratified a five-year labor agreement for UPS employees, including small package workers, but the agreement did not include UPS Freight workers.
The new deal approved includes some reductions in subcontracting and would improve some terms for pension and vacation benefits, according to the Atlanta Journal-Constitution.