United Parcel Service (UPS) and the Teamsters announced Tuesday that the two sides reached an agreement on a new contract that will avert the threat of a strike beginning in August.

The current UPS Teamsters collective bargaining agreement is set to expire on July 31, and union members were poised to begin a strike on August 1 if the two sides were unable to reach an agreement. UPS Teamsters voted in June to authorize a strike, with 97% of voting members in favor.

The deal comes as the two sides returned to the negotiating table on Tuesday after talks had broken down in recent weeks. UPS Teamsters will vote in the near future to ratify the new agreement.

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