UPS reaches agreement with Teamsters

| Wednesday, July 17, 2002

United Parcel Services and the Teamsters reached a tentative six-year contract agreement with UPS July 15, averting a strike when the current agreement expires July 31.

The six-year agreement, which covers roughly 230,000 UPS employees, easily surpasses the economic and non-economic package negotiated following the 1997 strike. The new agreement contains average annual wage and benefit increases of $1.46 each year, compared to 98 cents in the contract negotiated following a two-week strike in 1997.

"Today, we celebrate the fact that we won the richest contract in UPS history," said Teamsters General President Jim Hoffa. "In an economic climate in which many workers are losing their retirement savings and having their health benefits slashed, this contract protects our UPS workers and their families and sets a new standard for American workers."

UPS Chairman and CEO Mike Eskew said, "This agreement is good for our customers, good for employees and good for our company. It rewards our people for their hard work. It ensures our ability to continue providing the greatest value to our customers. And it enables UPS to remain strong in a very competitive industry, with the added stability of a six-year contract.

The terms of the six-year agreement include wage increases, a new cost-of-living formula, health, welfare and pension increases, a catch-up increase for part-timers, health insurance for part-time retirees, 10,000 new full-time jobs, a 90-day raise for new part-timers, pension benefit increases for part-timers, and long-term disability insurance. In addition, the contract guarantees the company agreed to eliminate subcontractors, recognize union job classifications that had been diverted from the union, and preserve Teamster bargaining unit jobs.

UPS and the Teamsters began negotiations with an initial exchange of proposals in January. The company and union held regularly scheduled negotiating sessions over the subsequent six months, culminating in the agreement announced Tuesday.

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