Members of the Teamsters union voted to ratify a new five-year collective bargaining agreement with shipping giant UPS on Tuesday, avoiding a potential strike that loomed over the U.S. economy as the two sides negotiated in recent months.

The five-year contract covers roughly 340,000 UPS Teamsters members across the U.S. and includes higher wages for full- and part-time workers, more full-time roles, and workplace protections such as air conditioning in delivery vehicles. The Teamsters union said that 86.3% of members voted in favor of ratification, which the union noted was "the highest vote for a contract in the history of the Teamsters at UPS."

"Our members just ratified the most lucrative agreement the Teamsters have ever negotiated at UPS," said Teamsters General President Sean O'Brien. "Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry. This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention."