Teamsters President James Hoffa says his union is building a strike fund even as he remains optimistic that a new contract will be reached with United Parcel Service before the July 31 deadline.

In an interview with the Journal of Commerce, Hoffa said, "The prospects are good for an agreement, but we always have the right to strike."
Hoffa told the paper that the union plans to raise dues so it can build a war chest that would pay striking workers far more than they have received previously - 10 times their hourly wage. Under the plan, a UPS driver earning $20 an hour would get $200 a week. When the union struck UPS for 15 days in 1997, striking workers only received $55 a week.
Hoffa will seek approval of the dues increase at a special convention in Las Vegas April 30. Teamster members making less than $11 an hour would not be subject to the increase.
The union also plans to obtain a line of credit for up to $200 million, according to the Journal.
Among other things, the Teamsters are seeking a wage increase, conversion of more part-time jobs to full-time jobs, and a three-year contract with UPS, which wants a five-year contract.