WASHINGTON, July 16 (UPI) -- The Teamsters union Tuesday announced an unprecedented six-year contract with United Parcel Service, covering 210,000 employees at the nation's largest private sector package delivery company.
The tentative contract, which now goes to rank and file members for a ratification vote to be completed in 30 to 45 days, increases wages an average $5 an hour for full-time employees and $6 for part-timers who are currently paid less.
UPS drivers earn an average $23.11 an hour.
"This tentative agreement surpasses any contract ever negotiated at UPS," said International Brotherhood of Teamsters General President James P. Hoffa at a news conference at the Washington Court Hotel. "It is the richest contract in UPS history and will set the tone for all collective bargaining for years to come."
The "handshake" agreement was reached late Monday after nine weeks of bargaining that continued through last weekend. The Teamsters' current contract was set to expire on July 31.
UPS Chairman and Chief Executive Officer Michael Eskew praised Hoffa for his personal involvement in the talks during a marathon weekend negotiating session.
"This is good for our customers, good for our people and good for our future," Eskew said.
UPS and the Teamsters were eager to reach agreement to avoid a repeat of the crippling 15-day strike that shut down the delivery service five years ago that cost the Atlanta-based company about $750 million in lost revenue and the union $200 million in wages.
The new contract covers 210,000 of the 230,000 Teamsters employed at UPS and is the largest private sector union contract to be negotiated this year -- the largest for the Teamsters since Hoffa was elected union president in 1999.
Union negotiators presented their package of economic proposals June 13 seeking improved wages and pensions, better health care for retirees and part-time employees and an increase in full-time jobs to reduce mandatory overtime.
UPS will create 10,000 new full-time jobs and convert 10,000 jobs currently subcontracted by adding 2,500 full-time positions in each of the final four years of the agreement.
The 20,000 full-time jobs will increase union membership at UPS nearly 10 percent over the life of the contract.
"UPS is not our enemy," Hoffa said. "UPS is a company that employs more than 210,000 Teamster members. It is a company whose union employees are earning top dollar and top benefits. If there were more companies like UPS, America would be a better place."
