And just like that, the air goes out of the strike balloon.

UPS and the Teamsters union representing 340,000 workers at the package carrier on Tuesday said they reached a preliminary labor deal that includes raises for both full- and part-time workers and narrowly avoids a potential strike that could have started next week.

“Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers,” UPS CEO Carol Tome. “This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.”

I said yesterday, I thought UPS had received the incoming messages concerning what the Teamsters had planned for them should they not buckle under to demands. Especially when the company let it be known…

…UPS is looking to reach a deal at the earliest and noted that it is ready to hike pay and benefits.

Yeah. That’s a “we surrender, be merciful” white flag if I ever saw one.

And the company is forking over the cash. Regular drivers, who already made around $42hr, are seeing a hefty pay increase, as well as the part-timers – who were a major part of the stickiness in negotiations – are coming out in much better shape. They were at $16hr originally and getting a good bump. This is on top of all the previously agreed to improvements (like airconditioned trucks, etc) that were part of the mediated sessions.

…Existing part-time workers will make a minimum of $21 an hour, if workers approve the new contract, the union said. Full-time workers will average $49 an hour. It would also end mandatory overtime on drivers’ days off, according to an outline of the contract provided by the Teamsters. UPS didn’t immediately confirm the potential new wages.

UPS stock has taken a bit of a hit today, but it remains to be seen what the numbers are going to add up to and what that does. The company has been in good shape for the past year or so – able to hand over $8.6 billion in cash to shareowners through dividends and share buybacks alone, so no wonder the union thought they were ripe for the picking.

The Teamsters, needless to say, are reacting with their usual good grace and public decorum.

💥“WE’VE CHANGED THE GAME”: TEAMSTERS WIN HISTORIC UPS CONTRACT💥

Today, the #Teamsters reached the most historic tentative agreement for workers in the history of @UPS, protecting and rewarding more than 340,000 UPS Teamsters nationwide. #1u pic.twitter.com/4Ap3j4XUTD

— Teamsters (@Teamsters) July 25, 2023

I mean, the whoop-dee-doo-ing thread goes on and on, like a pep rally on crack.

So, Teamsters membership has a week to vote on the tentative deal, but considering the hootin’ and hollerin’ online, I don’t think there’s any danger of this offer being rejected by more than five people. UPS put $30B – that’s billions with a B – of “new” money on the table this morning, and no one in their right mind turns their nose up at that in most instances.

This also cements the new Teamsters president O’Brien’s position as someone to we very wary of. He’s looking at you, Amazon.

By the way, speaking of freight companies, did you hear Fedex’s pilots rejected their contract with 57% of their membership yesterday?

Wonder if they had a feeling something was up and wanted to see what shook out with the outfit next door.

Man. You know it is gonna cost a buttload to send a box for Christmas.

I feel a Grinch coming on.