AP News, October 1st, 2007
United Parcel Service Inc. and the International Brotherhood of Teamsters reached a tentative agreement Sunday on a new 5-year contract that will raise wages annually and increase funds that provide pension, health and welfare benefits to members, officials on both sides of the deal said.
The contract would go into effect next Aug. 1 if approved by the approximate 240,000 full and part-time UPS union employees in the U.S.
The agreement was negotiated during the past year and was reached before a deadline set by the union for Monday to reach an early agreement.
"We made it very clear to the company that we needed to reach a tentative agreement by Oct. 1 so that our members could ratify a contract before new pension rules that could adversely affect our members take effect on Jan. 1, 2008, said Jim Hoffa, the Teamsters general president.
"We met that deadline and have negotiated an agreement that will greatly benefit our members at UPS as well as Teamster members in other industries covered by pension and health and welfare funds that will receive the contribution increase."
The agreement allows UPS to withdraw from the Central States Pension Fund, with the company making a $6.1 billion pretax payment to Central States. UPS also will fully fund the new plan.
"This agreement is good for our people, good for our customers and good for our company," said Mike Eskew, chairman and CEO of UPS. "This agreement will allow us to remain competitive in a challenging marketplace. And the fact that we have reached an agreement earlier than at any time in our history is a testament to the skills and determination of all those involved in these talks."
UPS spokesman Norm Black said UPS will move its employees into a single employer pension fund jointly administered by the UPS Board and the teamsters.
The Atlanta-based company is the world's largest package delivery company, serving more than 200 countries and territories worldwide.
