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.
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.
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."
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.
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
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