Representatives from the Teamsters Union and United Parcel Service are scheduled to officially begin talks today in Washington, D.C., over a new labor agreement covering the company’s 250,000 workers.

The two sides are expected to exchange opening proposals and are racing against a July 31 deadline before the current agreement expires.
The talks are expected to be the first big negotiations test for Teamsters President James Hoffa, who was recently elected to a second term. Five years ago the union and the company reached an impasse, with the Teamsters going on strike against the company, costing UPS an estimated $750 billion.
The Wall Street Journal reports industry watchers doubt there will be a strike this time around, due mainly to the soft economy and fewer jobs that pay close to an industry high for delivery truck drivers. Also the company has gone public since the strike and now has to answer to a large shareholder base
However, some customers are reportedly not taking any chances of seeing a repeat of of 1997, in which shipments in the UPS network were stranded.
Some shippers are said to be diverting some of their freight to UPS rivals such as FedEx as a precaution far in advance of the deadline and they plan to increase those diversions as the deadline draws closer.
Teamsters representatives say they will push for substantial increases in wages and benefits. And while UPS representatives promise to keep wages the highest in the industry, the two sides are expected to collide as UPS hopes to loosen work rules to compete against non-union rivals such as FedEx and others. The Teamsters are expected to push for the creation of another 2,500 full-time jobs from part-time jobs annually while the company is expected to draw the line over increased pay and benefits for part time workers.