The International Brotherhood of Teamsters and United Parcel Service have reached tentative agreements on new five-year national contracts for package and freight workers. The deal offers protection for health care benefits, provides substantial wage increases and significantly raises contributions to pension plans and health and welfare benefits.
"These are solid tentative agreements that all Teamsters at UPS and UPS Freight can be proud of," said General Secretary-Treasurer Ken Hall, Co-Chairman of the Teamsters National Negotiating Committees and Package Division Director. "I am pleased to announce that we have achieved our members' priorities of preserving their excellent health care benefits and protecting them into the future while also strengthening their pensions and providing pay raises."
The tentative agreement covering UPS package employees moves 140,000 workers into Teamster-controlled health plans from company plans. According to a press release from the union, it also provides a significant increase in the starting wage rate for part-time employees. The union also won the creation of more than 2,000 full-time jobs from the ranks of part-time workers, the release says.
"These agreements are a 'win-win-win' for our people, customers and shareholders," said Scott Davis, UPS chairman and CEO said in a statement. "The fact that we have reached agreements well before our current contracts expire is a testament to the skills and determination of all those involved in these negotiations."
The tentative agreement resolves subcontracting issues by putting all laid-off road drivers back to work.
The tentative agreements were reached well in advance of the July 31, 2013 expiration dates for the current, five-year contracts, which cover nearly 250,000 workers at UPS and UPS Freight. The UPS contract is the largest collective bargaining agreement in North America.
Upon ratification, the agreements will take effect on Aug. 1.