[Stay on top of transportation news: .]
UPS, Teamsters Contract Shows Enhanced Pay, Benefits
UPS Inc. employees represented by the Teamsters union will get a pay increase of $4 an hour and additional benefits worth $5 an hour under a new five-year contract, Bloomberg reported.
The agreement reached Sept. 30 was endorsed Sunday by leaders of 300 union locals. It must be approved by the company鈥檚 240,000 Teamster employees before taking effect, Bloomberg said.
The agreement鈥檚 terms were posted Friday on the Teamsters鈥 Web site.
Under the agreement, UPS will pay $6.1 billion to secure its goal of withdrawing from the Central States Fund, a multiemployer pension plan for 42,000 Teamster members, Bloomberg reported.
鈥淭his tentative agreement with UPS addresses our members鈥 concerns, and is an example of how the Teamsters are moving forward faster and stronger than ever,鈥 Teamsters General President Jim Hoffa said in a statement.
A UPS spokesman declined to comment on the contract鈥檚 terms, Bloomberg said. The agreement, which takes effect Aug. 1, was negotiated 10 months before the current contract expires.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.