LOUISVILLE, Ky. (WDRB) -- Tanner Vogt just applied to UPS, but he had no idea he’s get a raise before he even started.
UPS just hiked the starting wage for part-time package handlers from $13 an hour to $14 an hour.
”I was very excited,” Vogt said. “And I was like 'OK, I’m applying.'”
Others had that same thought. The company's employment office saw a 10-15 percent increase in applications in the first 24 hours since the new pay rate kicked in, according to the company's workforce planning manager, Bill Geiger.
A new contract between UPS and the Teamsters workers union was ratified in recent months. The new contract bumped up pay for package handlers from $10.50 to $13 an hour back in May.
“In one year from now, contractually, that rate will go up to $14.50 and eventually top out at $15.50 at the end of the contract [in 2022],” Geiger said.
Below are the rates and when they started or start:
- Aug. 1, 2019 -- $14
- Aug. 1, 2020 -- $14.50
- Aug. 1, 2021 -- $15.00
- Aug. 1, 2022 -- $15.50
It's a win-win for UPS and its employees. With a near-record-low unemployment rate and more volume than ever before from the rise of e-commerce, UPS needs to give workers a good package to get them in the door and keep them there.
“We could be offering you up to $200 a week [in bonuses] just to come to work,” Geiger said. “We actually have 600 more people on the payroll than we did this time last year.”
Geiger said the turnover rate at UPS is improving.
“We're about 2% better than we were last year,” he said.
For a link to apply, click here.
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