Release Date: 01 October 2007
Release ID: 630
UPS (NYSE:UPS) today announced it had reached a tentative agreement with the International Brotherhood of Teamsters on a new five-year contract covering approximately 240,000 full- and part-time package employees in the United States.
The tentative contract, which now must be presented to UPS Teamster-represented employees for ratification, was negotiated nearly a year in advance of the current contract's expiration on July 31, 2008. Upon ratification, most provisions of the new agreement will take effect on August 1st, 2008.
"This agreement is good for our people, good for our customers and good for our company," said Mike Eskew, UPS's chairman and CEO. "This agreement will allow us to remain competitive in a challenging marketplace. And the fact that we have reached an agreement earlier than at any time in our history is a testament to the skills and determination of all those involved in these talks."
The tentative contract includes wage increases as well as significant contributions to healthcare and pension plans to help strengthen these benefits for employees. The agreement allows UPS to withdraw employees from the Central States multi-employer pension plan and to establish a jointly trusteed single-employer plan for this group. UPS will make a pre-tax $6.1 billion payment to the Central States plan in connection with its withdrawal.
"This is an historic time for our company and for our people," Eskew concluded. "This past summer, we celebrated the 100th anniversary of our founding. It gave us the opportunity to reflect on all that we have achieved together and, more importantly, how well positioned UPS is for success in the coming years. This agreement will help to ensure that future success."
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