UPDATE 1-Teamsters, DHL in tentative labor deal

(Adds comment from DHL, details on number of DHL employees, details on competitors)

CHICAGO, Feb 27 (Reuters) - The Teamsters union has reached a tentative labor agreement with DHL Express, a unit of Deutsche Post (DPWGn.DE: Quote, Profile, Research), the two sides said on Wednesday.

"This agreement is truly historic," Brad Slawson, chair of the Teamsters national negotiating committee, said in a statement. "It is the first new national master agreement negotiated in the transportation sector in decades."

The deal will be reviewed by the Teamsters and DHL members, who will then vote on it. The Teamsters said the deal would cover thousands of DHL employees nationwide.

""We're pleased that the parties have reached a tentative agreement and look forward to its ratification," said DHL spokesman Richard Gibbs.

DHL has around 20,000 employees in the United States.

The company has struggled to make headway in the U.S. market, which is dominated by United Parcel Service Inc (UPS.N: Quote, Profile, Research) and FedEx Corp (FDX.N: Quote, Profile, Research).

Most of the UPS work force is unionized, while only FedEx's pilots currently have union representation. (Reporting by Nick Carey; Editing by Brian Moss)