UPS and Teamsters agree new contract

Source: Supply Chain Digital

Date :01/10/2007 11:46:02

The Teamsters Union and United Parcel Service Inc reached a five-year agreement on Sunday.

The contract which will cover drivers, clerks and package sorters included a raise in wages and increases the company's contributions to funds providing pensions and benefits.

The agreement is the largest labor pact in the U.S. private sector.

It will allow UPS to withdraw employees from the Central States pension plan and to establish a single–employer plan for this group that will be jointly managed.

New Contract

Atlanta-based UPS is the largest parcel delivery company in the world.

Its new agreement with the International Brotherhood of the Teamsters – which represents about 240,000 full- and part-time UPS employees in the U.S. - comes eleven months before the current contract is due to expire.

The agreement is subject to employee ratification.

UPS spokesman Norman Black said: “After we concluded our last contract early in 2002, our customers expected us to get this done early."

The Teamsters' UPS members have never rejected a contract agreed to by the union's leadership.

October 1 2007

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