United Parcel Service announced on Saturday that it has reached a five-year collective agreement with the majority of its employees in Canada after signing a deal with the Canada Council of Teamsters. The Canada Council of Teamsters is a Canadian trade union which represents over 9,000 of the delivery giant’s employees throughout the country.
United Parcel Service (UPS) disclosed that the contract will take effect retroactively from August 1, 2020, and will extend until July 31, 2025. The agreement covers wage hikes and enhancements to UPS’ funded Defined Benefit Pension plan.
Dominic Porporino, UPS Canada President said, “This agreement provides continued stability to both our employees and customers for the next 5 years.” He further added, “At a time when so many Canadians are relying on supply chains for essential goods, ratification shows our employees’ commitment to continue to serve our customers, and rewards them with enhancements to their compensation and benefits.” (See UPS stock analysis on TipRanks).
On Oct. 29, Argus Research analyst John Eade raised the stock’s price target to $180 (7.4% upside potential) from $156 and reiterated a Buy rating. Eade was impressed with UPS’ stronger-than-expected 3Q earnings results reported on Oct. 28. The analyst said that the company is “well-positioned’ to benefit from multiple positive trends including e-commerce growth.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 12 Buys, 1 Hold and 3 Sells. The average price target of $178.87 implies upside potential of about 6.7% to current levels. Shares are up 43.2% year-to-date.
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