The International Brotherhood of Teamsters and DHL have reached a tentative four-year agreement, avoiding a nationwide strike that could have disrupted parcel and freight operations across the U.S.

The deal, announced by the union, covers thousands of workers represented by 26 locals under the DHL Teamsters National Master Agreement, which was set to expire March 31.

According to the Teamsters, the agreement includes a 20% wage increase over the life of the contract, improved health and welfare contributions, and strengthened job protections. It also addresses the growing role of technology in logistics operations, with provisions aimed at limiting the impact of AI-driven routing systems on seniority rights and explicitly prohibiting the use of autonomous vehicles that could displace workers.

Teamsters General President Sean M. O’Brien said the agreement sets a new standard at DHL and reflects the leverage created by a strong strike mandate.

“Our members at DHL held management’s feet to the fire and demanded a contract that recognizes the hard work they perform every day,” he said in a statement.

Union members had voted 96% in favor of authorizing a strike ahead of the contract deadline.

The tentative agreement also drew praise from rank-and-file negotiators. Eric Camarena, a DHL dockworker and shop steward with Teamsters Local 986, called it the strongest contract he has seen in his 26 years with the company.

Bill Hamilton, director of the Teamsters Express Division, said the deal delivers meaningful gains while reinforcing the union’s willingness to take job action if needed.

The agreement must still be ratified by union members, with voting expected in the coming weeks.