to funds that provide pension and health and welfare benefits to Teamster members.
Teamsters General President Jim Hoffa said the agreement was negotiated during the past year, and was reached in advance of an Oct. 1 deadline set by the union for an early agreement. The current contract does not expire until July 31, 2008. Upon ratification, most provisions of the new agreement will take effect on Aug. 1, 2008.
"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 Hoffa, co-chairman of the Union's National UPS Negotiating Committee. "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 increases."
The agreement allows UPS to withdraw from the Central States Pension Fund and creates a jointly-administered pension fund for affected members. UPS will make a pre-tax $6.1 billion payment to the Central States Plan and will also fully fund the new Plan.
"We launched early negotiations for the national contract a year ago after members made it clear that they wanted the union to protect their pensions and health care for retirees and active workers," said Ken Hall, director of the Teamsters Parcel and Small Package Division who also was co-chairman of the committee and lead negotiator. "This tentative agreement provides more funding for pensions and protects our members' health care, among other improvements."