Teamsters approve UPS contract with raises for drivers, package sorters

Unionized UPS workers voted to accept a five-year contract that raises pay up to 55 percent for certain employees over five years and includes workplace improvements in a labor agreement that experts have called a historic success for the U.S. union movement.

More than 86 percent of union members approved the contract, the International Brotherhood of Teamsters said Tuesday. UPS employees covered by the contract will receive a $2.75 hourly raise this year and a $7.50 increase over the next five years. Parcel delivery drivers will earn an average of $170,000 in annual pay and benefits by the end of the deal, up from $145,000, UPS chief executive Carol Tomé told investors earlier this month.