UPS and the Teamsters union both appear highly satisfied with a new six-year contract agreed to over the weekend.

The contract, which covers roughly 230,000 UPS employees in the United States, was reached more than two weeks before the July 31 expiration of the current contract. The agreement now will be presented to the union-represented workers for ratification. Company and Teamster leaders are recommending a "yes" vote.
According to Teamsters President James Hoffa, the tentative agreement provides the largest wage and benefit increases in the company's history and in Teamster history.
“This tentative agreement surpasses any contract ever negotiated at UPS,” said Hoffa. “It is the richest contract in UPS history and will set the tone for all collective bargaining for years to come.”
Among other things, according to Hoffa, the contract provides:

• An average annual wage and benefit increases of $1.46 per year, including a wage increase of 22 percent over the six-year term. This compares to $.98 in the contract negotiated in 1997 following a two-week strike.

• 20,000 new Teamster jobs through the creation of 10,000 new full time jobs and the conversion of 10,000 jobs that are currently subcontracted.

• Restrictions on mandatory overtime

• Significant pension and health care improvements for part-timers and part-time retirees, and for full-timers with previous part-time service.

• A reduction in the wage gap between part-time and full-time employees

• Long term disability protections for Teamsters unable to continue working because of disability.

"This agreement is good for our customers, good for employees and good for our company," said UPS Chairman and CEO Mike Eskew. "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.”