Teamsters Reach Tentative Agreements Covering 250,000 Workers At UPS, UPS Freight

Proposed Five-Year Contracts Protect Strong Health Care Benefits While Significantly Increasing Funding For Pensions, Health And Welfare Funds

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International Brotherhood of Teamsters

Apr 25, 2013, 09:01 ET

WASHINGTON, April 25, 2013 /PRNewswire-USNewswire/ -- The Teamsters Union announced today that it has reached tentative agreements with UPS [NYSE: UPS] on new five-year national contracts for package and freight workers that protect their health care benefits, provide substantial wage increases and significantly raise contributions to pension and health and welfare benefits.

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The tentative agreement covering UPS package employees moves 140,000 workers into Teamster-controlled health plans from company plans to maintain current strong benefits for all UPS Teamsters while growing the funds for Teamsters in all industries into the future.

"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 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.

"This is a great day for the Teamsters Union," said General President Jim Hoffa, Co-Chairman of the Teamsters National Negotiating Committees. "At a time when workers and their pay, benefits and working conditions are under attack by corporate America, we have succeeded in improving the lives of our hardworking and dedicated UPS and UPS Freight Teamsters for years to come. These tentative agreements are shining examples to the entire country of a hugely successful unionized company that thrives because of its workers."

In the UPS tentative agreement, workers will get substantial pay raises, including 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.

For UPS Freight, the tentative agreement resolves subcontracting issues by putting all laid-off road drivers back to work. UPS Freight workers will receive substantial wage increases and lower co-pays for health insurance. The agreement provides the ability for more part-time workers to become full time.

More details about the tentative agreements will be available to Teamster members at www.Teamster.org/UPS in the coming days. Representatives from UPS and UPS Freight Teamster Local Unions will meet soon to review the tentative agreements. Following that meeting, members will vote by mail on the tentative agreements, with results expected in mid-June. Upon ratification, the agreements will take effect on Aug. 1.

Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and "like" us on Facebook at www.facebook.com/teamsters.

SOURCE International Brotherhood of Teamsters