Few vehicles are as iconic as the brown UPS delivery trucks, featuring instantly recognizable yellow logos. UPS employs around 500,000 people in over 200 countries and territories worldwide. The majority of these employees are drivers who earn substantial incomes.
According to company data, the average annual salary for a UPS delivery driver is $95,000. This is approximately 60% higher than the median wage for full-time U.S. workers, which stands at $59,436 based on the latest statistics from the U.S. Department of Labor.
When additional benefits such as healthcare, paid time off/vacation, pension plans, sick leave, and optional leave are included, the total compensation package for a full-time UPS delivery driver amounts to about $145,000 annually. Local over-the-road drivers earn even more (approximately $162,000 per year), while long-haul team drivers earn the most (around $172,000 annually).
How Did They Reach This Level?
UPS drivers owe their high salaries to a generous Teamsters union contract that affects about 340,000 workers. According to Craig, who worked as a UPS driver in Charlotte for 20 years, the contract is renegotiated roughly every five years and has a significant impact on UPS drivers’ earnings. He agreed to speak under the condition of using only his first name.
“The contract covers everything you can think of: wages, working conditions, number of full-time hires, part-time hires, who can transition to full-time employment, etc.,” Craig said. “Wages are clearly determined by the union contract, along with time off, work hour requirements, and holidays. All these are negotiated during contract talks—even down to the air conditioning in the trucks.”
According to CNBC reports, the latest UPS-Teamsters five-year contract was approved in August 2023. Here are some of its financial highlights:
- The dual wage system has been abolished.
- All full-time and part-time union workers are guaranteed a $2.75 per hour wage increase. This raises the average top pay for full-time drivers to $49 an hour.
- Existing and newly hired part-time workers’ wages have immediately increased to at least $21 an hour.
- Current part-time workers receive up to a $1.50 hourly seniority wage increase.
How Can You Reach That Level?
So, how does one advance within UPS? It’s simple—just put in the time, Craig told GOBankingRates.
“Seniority basically dictates everything,” he said. “As for moving into management, I think interested drivers just need to put their names forward. I wasn’t interested because they work longer hours and you have to be willing to be tough on employees.”
While having a good attitude and being a team player can never hurt—regardless of the job or company—these traits are not as crucial for advancement at UPS compared to other places.
“Attitude, teamwork—none of these matter much because the company can’t give you a raise or better routes based on these factors,” Craig said. “Again, everything is based on seniority. You’re hardly ever fired for having a bad attitude. The only real reason you might get fired is for disobeying dispatchers or theft. Of course, management has their preferences and will sometimes turn a blind eye to certain drivers for reasons unknown. But out on the road, no one monitors you, meeting customers—it’s really interesting.”
On its website, UPS notes that many “UPS employees” start as part-time workers and then apply for full-time positions after learning skills and proving themselves, similar to an apprenticeship program. Over 18,000 managerial staff (55%) started in union roles.
If you decide to become a UPS driver, expect to work very hard for the high pay, especially during holiday seasons.
“There’s no downtime from Thanksgiving to Christmas,” Craig said. “I worked until ten o’clock on Christmas Eve delivering the last few packages. Customers were certainly happy to see you bringing gifts they thought would be missed. The pay is great but it’s tough on your body.”
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