Updated 1:14 pm EDT
United Parcel Service (UPS) -) shares traded higher Wednesday after its unionized workers voted to ratify a new five-year, $30 billion labor contract with the world's biggest package delivery group.
The International Brotherhood of Teamsters union, which represents around 340,000 UPS employees, said workers voted 86% in favor of the new deal, although a a small local affiliate in Florida, with a 174 members, will still need to ballot in order to fully confirm the agreement.
Part-time workers will earn $21 an hour under terms of the new agreement, a 35.5% increase from prior levels, while certain drivers will earn as much as $49 per hour, with maximum wages of $175,000 per year, by the end of the five-year term.
“This contract will improve the lives of hundreds of thousands of workers,” Teamsters President Sean O’Brien said in the statement. “Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry.”
UPS shares were marked 0.76% higher in early afternoon trading Wednesday to change hands at $168.12 each.
Higher labor costs, as well as the loss of customers to rival FedEx (FDX) -) during UPS's labor negotiations with the Teamsters, led to the group cutting its full-year profit forecast earlier this month.
UPS now sees revenue in the region of $93 billion, down from its prior estimate of $97 billion, with operating margins narrowing to around 11.8%.
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