UPS Teamsters Contract: Driver Pay, 22.4s and Heat Rules to 2028
The national master agreement covers more than 340,000 UPS workers through July 31, 2028. The raise schedule, the new-hire progression, sleeper mileage rates and the heat provisions, from the union's own contract summary.
The UPS Teamsters national master agreement runs from 2023 to July 31, 2028 and covers more than 340,000 UPS workers. It raises full-time and part-time pay by $7.50 an hour over five years, moved all 22.4 weekend drivers into the regular package car driver classification, and requires air conditioning in package cars and vans bought after January 1, 2024. Union members ratified it in August 2023 with 86.3% voting yes.
How much do UPS drivers get in raises under the contract?
Full-time and part-time seniority employees get general wage increases totaling $7.50 an hour over the life of the agreement, according to the Teamsters’ summary of the contract. The schedule is front-loaded and back-loaded:
| Contract year | General wage increase per hour |
|---|---|
| 2023 | $2.75 |
| 2024 | $0.75 |
| 2025 | $0.75 |
| 2026 | $1.00 |
| 2027 | $2.25 |
| Total | $7.50 |
As of November 2026, the 2023 through 2026 increases have been applied, and the final $2.25 is scheduled for 2027. The union said the contract brings the average full-time top rate to $49 an hour. Existing cost-of-living adjustment language was kept. Top rates differ by region and supplement, so the exact figure for a given building is in the local supplement or rider.
What do new UPS package car and feeder drivers make?
Employees who enter a full-time package car, feeder or other driving job after August 1, 2023 move up a progression to top rate over four years, under Article 41, Section 2(c) as summarized by the union:
| Time in job | Hourly rate |
|---|---|
| Start | $23.00 |
| 12 months | $24.00 |
| 24 months | $25.00 |
| 36 months | $30.75 |
| 48 months | Top rate |
Part-time workers hired or reaching seniority after August 1, 2023 start at $21.00 an hour and reach $23.00 after 48 months, and the part-time start rate rises to $23.00 for hires after August 1, 2027. For how hourly pay compares with per-mile and percentage pay elsewhere in trucking, see how truck drivers get paid.
What happened to the 22.4 driver classification?
The 22.4 classification, a lower-paid weekend and combination driver tier created in the 2018 contract, was eliminated. Drivers classified under Article 22.4(b) were reclassified as Regular Package Car Drivers (RPCDs) effective August 1, 2023, placed in seniority under their supplement, and moved to top rate or the applicable progression step.
The reclassified drivers gained the RPCD protections, including the “9.5” excessive overtime rules and 8-hour requests. The contract also says no RPCD can be forced to work outside the regular scheduled workweek.
What does the contract say about heat and air conditioning?
The heat provisions were one of the most visible changes. Per the union’s summary of Article 18:
- All vans, package cars, pushbacks, shifting units and 24-foot box vans acquired after January 2024 must have air conditioning, with A/C trucks going first to the hottest parts of the country.
- One fan was to be installed in every package car within 30 days of ratification and a second fan by June 1, 2024.
- Model year 2023 and newer package cars and vans come with factory heat shields and air induction vents in the cargo area, and older package cars were to be retrofitted within 18 months of ratification.
- UPS must have a heat illness prevention plan, give drivers a 1-gallon insulated water jug, and provide ice machines, building fans and water fountains.
- UPS committed to replacing at least 28,000 package cars and vans during the contract.
What are the hours and overtime rules for UPS drivers?
Package car drivers may volunteer to work more than 60 hours in a 70-hour workweek but cannot be forced to, and volunteers are paid double time for hours over 60. The 9.5 rules let drivers who are regularly dispatched past 9.5 hours a day file for penalties, which the new contract raised, and 8-hour requests must now be honored with fewer days of notice. Martin Luther King Jr. Day became a paid holiday.
UPS drivers fall under the federal hours-of-service limits like other CMV drivers; see hours of service rules. Union contracts like this one also explain why UPS drivers get overtime pay at all, since most truck drivers are exempt from federal overtime, as covered in why most truck drivers don’t get overtime.
How are UPS sleeper team drivers paid?
Sleeper team drivers on mileage runs are paid per mile under Article 43. The union’s summary lists the top mileage rates, effective August 1 of each contract year:
| Year | Single | Double | Triple |
|---|---|---|---|
| 2023 | $1.0148 | $1.0361 | $1.0577 |
| 2024 | $1.0320 | $1.0537 | $1.0757 |
| 2025 | $1.0492 | $1.0713 | $1.0937 |
| 2026 | $1.0721 | $1.0947 | $1.1176 |
| 2027 | $1.1237 | $1.1474 | $1.1714 |
Sleeper drivers also get $45 in road expenses per 1,000 miles, up $10, and lodging penalties rose from $50 to $100 per rest period when UPS cannot provide lodging. New sleeper runs must pull at least 550 miles on the first leg.
The contract also bars UPS from introducing drones, driverless vehicles or platooning without bargaining with the union, and it limits the use of driver-facing cameras and sensors for discipline.
Bottom line
The biggest raise left in the contract, $2.25 an hour in 2027, arrives a year before the July 31, 2028 expiration, so the last year’s pay is the base for the next talks. The contract is already being tested: in February 2026 the Teamsters sued UPS in federal court in Massachusetts, claiming its second driver buyout offer, the Driver Choice Program, violated the national agreement, and in April 2026 the union announced a settlement on driver severance packages.
FAQ
When does the UPS Teamsters contract expire?
The current national master agreement expires on July 31, 2028. It was ratified in August 2023 for a five-year term.
What is the top rate for a UPS driver?
The union said the contract raises the average full-time top rate to $49 an hour. The exact top rate depends on the local supplement and the remaining 2027 increase.
Do all UPS trucks have air conditioning now?
No. The contract requires A/C in package cars and vans acquired after January 2024 and fans, heat shields and vents in older vehicles. Older package cars without A/C remain in the fleet until replaced.
Did UPS drivers lose jobs under the contract?
The contract requires UPS to fill 22,500 full-time openings and create 7,500 new full-time jobs from part-time ones. UPS offered drivers buyouts, and the Teamsters challenged the second offer in February 2026 in federal court as a breach of the contract before announcing a settlement on severance packages in April 2026, according to union press releases.
