UPS and the International Brotherhood of Teamsters have reached a tentative agreement on two new five-year contracts for package and freight workers.
The tentative contracts, which must be presented to the UPS Teamsters-represented employees for ratification, were concluded in advance of the July 31, 2013, expiration of the current contracts. Representatives from UPS and UPS Freight Teamsters local unions will “meet soon” to review the tentative agreements, the Teamsters said in a written statement. 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, 2013.
The agreements cover nearly 250,000 workers at UPS and UPS Freight, including 140,000 workers who were moved into Teamsters-controlled health plans from company plans. In the UPS tentative agreement, workers will get “substantial” pay raises, including an increase in the starting wage rate for part-time employees, the Teamsters said. 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 wage increases and lower co-pays for health insurance. The agreement also provides the ability for more part-time workers to become full time.