The deals cover the Atlanta-based integrator’s small package and freight business units, affecting around 250,000 workers at UPS and UPS Freight.

The contracts are subject to the ratification by the UPS Teamster-represented employees, but the company said the tentative agreements with negotiators have been concluded “well in advance” of the current deals running out on 31st July, 2013.

Once approved by the full membership, the contracts should take effect 1st August, the firm said.

UPS said the new deals allow it to remain “highly competitive, customer-focused” and in position to develop its technology further in areas like healthcare logistics and e-commerce.

“These agreements are a ‘win-win-win’ for our people, customers and shareholders,” said Scott Davis, UPS chairman and CEO. “The fact that we have reached agreements well before our current contracts expire is a testament to the skills and determination of all those involved in these negotiations.”

The Teamsters union said its agreements protected healthcare benefits and provided a “substantial” wage increase, also increasing contributions to pensions.

The deals will see 140,000 workers moving into Teamster-controlled health plans, the union said, adding that it also secured agreement for 2,000 part-time workers to be converted into full-time jobs.

“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.”

Healthcare acquisition

Separately, UPS also announced yesterday that in Europe it is to acquire a healthcare logistics company to strengthen its position in Hungary.

Cemelog Zrt is based outside Budapest, offering customised healthcare logistics solutions for customers in Central and Eastern Europe for the past 14 years.

It offers services ranging from warehousing, quality assurance and other supply chain services along with logistics services.

Its acquisition, which remains subject to regulatory approvals, will hand UPS three facilities providing a combined 24,000 square metres of distribution space.

UPS said the firm’s existing customers include some of the most recognised healthcare brands in the world.

“This acquisition is a continuation of our ongoing growth strategy across our business units and allows us to create innovative solutions for our customers that leverage UPS’s global network,” said Scott Davis, UPS Chairman and CEO. “It will position us well to meet the needs of healthcare companies in a key geographic location as they strive to regionalize logistics operations as a way to increase efficiencies.”

Source: Post&Parcel/UPS/Teamsters

Tags: collective bargaining agreement, International Brotherhood of Teamsters, Union, UPS, USA


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