The Teamsters, representing 340,000 UPS workers, announced on Tuesday the successful ratification of the tentative contract agreement reached last month, reports the Associated Press.

An overwhelming 86% of the votes cast by members favored the ratification of the national contract. While more than 40 supplemental agreements were also ratified, an exception was the one covering around 170 members in Florida. The main national master agreement will take effect once the Florida supplement is renegotiated and ratified.

The new contract, spanning five years, was met with praise by Teamsters General President Sean M. O’Brien, who lauded it as “the most lucrative agreement the Teamsters have ever negotiated at UPS.”

He emphasized that the agreement sets a new standard for compensation and benefits, underscoring its potential impact on workers across different sectors.

The deal comes after negotiations nearly collapsed in July, prompting UPS and Teamsters to reach a tentative agreement just before an impending deadline. This resolution avoided potential supply chain disruptions and steep shipping price hikes. The accord grants substantial pay increases for both full-time and part-time union workers over the contract’s duration, along with addressing various labor-related issues.

The resounding ratification underscores the value of collaborative labor-management relations in a time of economic uncertainty and supply chain complexities. This victory holds significance not only for UPS workers but also for labor unions across the U.S., as it showcases the potential for collective bargaining to shape fair compensation and working conditions in an evolving job landscape.