UPS CEO Carol Tome has stated that the costs incurred by the company for the newly established Teamsters contract are significantly less than the “$30 billion in new money” claimed by the union. Tome emphasized that the agreement is cost-effective and fair, with the majority of compensation being provided in the first year. The contract’s structured increase in costs is viewed as advantageous for UPS, offering a 3.3% compounded annual growth rate. The agreement also addresses work-life balance for employees while preserving weekend delivery options for customers. Avoiding a work stoppage, the contract has prevented potentially severe economic consequences, with a projected $7 billion loss in the US economy within the first 10 days of a strike. UPS shares have experienced a 14% decline since the announcement of the contract.