UPS and Teamsters attain agreement on contract

International Brotherhood of Teamsters President James P. Hoffa and UPS Chairman and Chief Executive Michael Eskew discussed the pact at a press conference Tuesday in Washington.

“In 1997 we hit a homerun and today we hit a grand slam,” Hoffa said referring to the last contract the union negotiated with UPS. “I don’t want anyone to say that these negotiations were not tough. To say the least, they were intense, they were driven. We were up all hours of the night.”

UPS full-time and part-time workers will receive hourly wage increases of $5 and $6, respectively, over the six-year life of the contract. Health benefits were also increased, Hoffa said. The results of a ratification vote by the union’s membership are expected in mid-August.

The agreement was reached after nine consecutive weeks of negotiations and a marathon bargaining session this past weekend. Contract proposals were first exchanged on Jan. 30. Both sides said they wanted to avoid a repeat of the two-week strike in 1997 that cost UPS $750 million.

UPS customers, fearing another strike after the current contract expired July 31, had already started diverting shipments to rival carriers.

“We reached this handshake agreement well in advance of the expiration of our current agreement,” Eskew said.

The company agreed to discontinue using approximately 10,000 subcontracted workers, instead allowing those employees to join the union. During each of the last four years of the contract, 2,500 new union jobs will be added, for a total of 10,000 jobs, Hoffa said.

Strike fears hit results at Atlanta-based UPS, which earlier reported second-quarter profits of $611 million, off 3 percent from the $630 million it earned in the same period in 2001. Package volume was down 2 percent in April and May from the previous year’s levels, and fell 4 percent in June.

Relevant Directory Listings

Listing image

RouteSmart Technologies

RouteSmart Technologies optimizes last-mile operations and enables the most successful postal and home delivery organizations to build more efficient route plans every day. Our proven solutions allow you to decrease planning time, create balanced and efficient delivery routes, lower total travel distance, and maximize daily […]

Find out more

Other Directory Listings

Advertisement

Advertisement

Advertisement

P&P Poll

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

 

Pin It on Pinterest

Post & Parcel
Australia Post proposed price increase to help the operator address losses
Citizens Advice: Royal Mail’s unfair price hikes are making post less affordable
Austrian Post: dividend amounts to EUR 1.83 per share
Interparcel: The ripple effect of these tariffs is stretching far beyond China and the U.S.
Australia Post proposed price increase to help the operator address losses
Citizens Advice: Royal Mail’s unfair price hikes are making post less affordable
Austrian Post: dividend amounts to EUR 1.83 per share
Interparcel: The ripple effect of these tariffs is stretching far beyond China and the U.S.
1
2
3
4
5
Listing image
Listing image
Listing image
Listing image
UPS “on a mission to transform our customer experience”
UPS to address challenges in international e-commerce
UPS: logistics can be a competitive advantage for businesses of all sizes
UPS to “provide French businesses of all sizes and industries the fast and reliable service they need to grow”
Share This