On Tuesday, UPS and the Teamsters Union agreed on a new contract, avoiding a supply chain disaster that could have affected millions of Americans. The contract also saved President Joe Biden and his administration from another economic crisis.

UPS and the Teamsters have been in negotiation for three months. The new contract, which is still tentative, covers more than 340,000 workers nationwide and marks the largest private collective bargaining agreement in North America.

One of the more pressing issues to consider while drawing up the contract was pay rates for hybrid workers, who split time between driving delivery trucks and working at a warehouse. They are paid less than full-time delivery drivers but will be reclassified as regular package car drivers once the contract takes effect.

The Teamsters were ready to begin striking as soon as August 1, which would have held up package delivery indefinitely. Amid the early stages of the 2024 presidential election cycle, this strike would have put Biden under even more scrutiny from Republicans, who do not believe he is equipped to handle the economy.

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The agreement still awaits ratification and will be voted on between August 3 and August 22.

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