UPDATE 1-FedEx unit to pay $253,000 to settle labor charges

(Adds details of union election, settlement, FedEx comment, Teamsters comment, dateline)

CHICAGO, Nov 6 (Reuters) - A unit of package delivery giant FedEx Corp (FDX.N) has agreed to pay a total of $253,000 to five former or present drivers to settle charges of unfair labor practices, the Teamsters union said on Tuesday.

The National Labor Relations Board alleged that Memphis-based FedEx illegally harassed and intimidated the drivers and terminated the contracts of four of the five to prevent a local union election at the Northboro, Massachusetts, terminal of FedEx Home Delivery.

The NLRB also ordered an election to take place at the terminal on Feb. 1, the Teamsters said.

"I'm outraged at FedEx's treatment of these workers," Teamsters President Jim Hoffa said in a statement. "This small amount of compensation is not enough to undo the damage that FedEx has done to their lives."

"FedEx has made no admission of wrongdoing," FedEx spokesman Maury Lane said. "This (settlement) was a means to an end."

"We look forward to the election on February 1," he added.

This is the latest development in a long-standing and often acrimonious dispute, in which the Teamsters have been trying to unionize FedEx terminals.

Unlike the drivers at its main rival, United Parcel Service Inc (UPS.N), FedEx drivers do not have union representation.

FedEx pilots are represented by a union. (Reporting by Nick Carey; additional reporting by Neha Pathania in Bangalore; editing by John Wallace)