UPS Inc. and the Teamsters union reached a tentative five-year contract Tuesday morning, averting, at least for now, a possible Aug. 1 strike that could have crippled the U.S. economy.

Under the agreement, 7,500 full-time Teamsters jobs will be created and 22,500 open positions will be filled, according to a Teamsters statement. Existing full- and part-time workers will get $2.75 more per hour in 2023 and $7.50 per more hour over the length of the contract, according to the statement. Existing part-timers will be raised up to $21 per hour immediately. New part-timers would start at $21 per hour and advance to $23 per hour.

Wage increases for full-timers will average $49 per hour at the top end of the scale.

General wage increases for part-time workers will be double the amount obtained in the previous contract, and existing part-time workers will receive a 48% average total wage increase over the next five years.

UPS Teamsters part-timers will have priority to perform all seasonal support work using their personal vehicles with a locked-in eight-hour guarantee, according to the statement.

In separate statements, the Teamsters called the agreement “historic,” saying UPS has put $30 billion of new money on the table. UPS CEO Carol B. Tomé called the contract a “win-win-win agreement” on the issues important to all stakeholders.

The contract will be submitted to 340,000 rank-and-file members next Monday for ratification. Voting is expected to conclude Aug. 22.

This is a developing story.