CHARLESTON, W.Va. -- The International Brotherhood of Teamsters has reached tentative agreements with the United Parcel Service for new five-year national contracts covering nearly 250,000 package and freight workers.
If union members approve the contract during votes at local unions across the country in June, the new agreements will take effect on Aug. 1. Today, the main UPS-Teamsters contract is the largest collective-bargaining agreement in North America.
The proposed contracts provide substantial wage increases, protect health-care benefits and increase company contributions to pension and health benefit plans.
Ken Hall, who began his career working for Pennzoil in Lincoln County, was the lead negotiator for the union. Still president of Local 175 in South Charleston, Hall also is international secretary-treasurer for the Teamsters Union.
Contract negotiations with UPS began in October and intensified in recent weeks, Hall said.
Scott Davis, UPS chairman and CEO, said, "These agreements are a 'win-win-win' for our people, customers and shareholders. 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."
Davis and other company officials believe reaching an early agreement will protect UPS against any possible losses of business because of the threat of a strike.
"The new contracts enable UPS to remain highly competitive, customer-focused and positioned to deliver transformative technologies in such areas as healthcare logistics and e-commerce on a global scale," UPS stated Thursday in a news release.
"Between money going to wages and to health care, there will be an increase of $8.90 an hour over the next five years in the main contract," Hall said during an interview Saturday.
"Drivers will make over $36 an hour by the end of this contract. That will be more than $58 an hour if you put wages, health care, pension and other benefits together."