Teamsters: 9,900 UPS unit workers ratify contract

CHICAGO (Reuters) - The Teamsters union said on Monday that 9,900 workers at United Parcel Service Inc (UPS.N) trucking unit UPS Freight have ratified a five-year contract with UPS that also makes them members of the union.

The agreement was approved by 89 percent of the new members in a vote and Teamsters President Jim Hoffa said in a statement the contract with UPS will improve wages, benefits and working conditions for the workers.

Last September the Teamsters and Atlanta-based UPS said they had reached a labor agreement covering 125 workers at a UPS Freight terminal in Indianapolis.

In March UPS CEO Scott Davis told Reuters that the Indianapolis contract included "reasonable wage increases" and guaranteed work rule flexibility, adding that it was up to UPS Freight's employees to choose whether they wanted union representation.

"If they make that choice and sign contracts similar to the one in Indianapolis, we feel that will allow us to remain competitive going forward," Davis said.

The Teamsters already represent some 240,000 full- and part-time UPS workers.

Apart from its pilots, workers at main rival FedEx Corp (FDX.N) do not have union representation.

On the New York Stock Exchange, UPS shares fell 66 cents to $73.85 at mid-afternoon.

(Reporting by Nick Carey, editing by Richard Chang)