Employees Ratify UPS Contract
%mlink(STRY:; PHOTO:; AUDIO:%)
ATLANTA (AP) _ Members of the Teamsters union have approved a new six-year contract with United Parcel Service that covers more than 200,000 employees of the Atlanta-based package delivery company.
The contract, which was negotiated in July, provides the largest wage and benefit increase in UPS’ history, the creation of 10,000 new jobs and conversion of 10,000 jobs that are now subcontacted, the International Brotherhood of Teamsters said.
It was approved by 72 percent of the union membership, Teamsters spokesman Bret Caldwell said.
``This vote reflects recognition by our employees that this is a fair and balanced agreement that rewards them for their hard work, while allowing the company to remain competitive,″ UPS chairman and chief executive Mike Eskew said.
Retroactive to Aug. 1, the contract also includes provisions on subcontracting by UPS and restrictions on mandatory overtime.
The package delivery giant and the union struck a deal July 16 that gives workers a 22 percent pay raise over the six years. The agreement came 16 days before the current five-year contract was to expire _ averting a repeat of the two-week strike in 1997 that cost the company $750 million.
``This is the richest contract in UPS history _ and the workers agree,″ Teamsters President Jim Hoffa said. ``It sets the tone for negotiations for years to come.″
The company said it expects more than 13 percent growth in 2003, outperforming its average over the past decade, assuming worldwide trends continue and the American economy recovers.
UPS is the world’s largest global transportation company, serving more than 200 countries worldwide.
UPS Shares fell 60 cents Thursday and were at $63.85 on the New York Stock Exchange.
On the Net: