The agreement provides for a 22% pay increase over a six-year period. Contributions to health and social assistance and pension funding have also been improved. In the coming weeks, UPS union officials will receive full details of the contract. Parcel delivery giant UPS and the International Brotherhood of Teamsters union have reached an interim labour agreement for a five-year contract covering UPS employees represented by Teamsters in small packages and removing a possible strike. The agreement, which is subject to ratification, came after months of collective bargaining. Negotiations on a number of endorsements covering local working rules, as well as the separate agreement covering some 11,000 Teamsters employees within the UPS Freight network, will continue. Among the details of the agreement outlined by the Teamsters are: United Parcel Service Inc. and Teamsters union negotiators have reached an interim agreement on a new five-year contract for unionized workers in ups Freight Trucking Division, as the company announced Friday. Last month, negotiators UPS and Teamsters agreed on the national contract of about 260,000 employees in the company`s main company for small parcels, including parcel delivery drivers and employees at UPS sorting facilities. UPS and the International Brotherhood of Teamsters have not released details of the agreement, which must be ratified by union membership. Local union leaders are meeting in the coming weeks to review the preliminary agreement, a Teamters spokeswoman said. The Teamsters announced on Thursday that they had agreed on the principle of a new five-year contract with UPS to avoid the possibility of a strike. UpS`s goal is to reward the company`s employees for their contribution to success while keeping the company flexible to meet the needs of its customers, the company says.
UPS believes that each of these objectives has been achieved in the new agreement. WASHINGTON, D.C., July 16, 2002 — UPS (NYSE:UPS) today announced that the company and the International Brotherhood of Teamsters have agreed on a new six-year contract to replace the pact that expires on July 31. UPS and the Teamsters began negotiations with an initial exchange of proposals in January.