November 20, 2007 / 10:29 PM / in 10 years

Teamsters ratify 5-year United Parcel contract

CHICAGO (Reuters) - Workers at United Parcel Service Inc (UPS.N) represented by the Teamsters have approved a new 5-year contract, the union said on Tuesday.

According to preliminary results, the national agreement for about 240,000 full- and part-time workers at the world’s largest package delivery company was approved by a margin of 65.03 percent.

The Teamsters said it would meet with members of some groups who voted against the agreement to identify and address their concerns.

The new agreement will raise workers’ wages, plus increase the Atlanta-based company’s contributions to funds providing pensions and benefits.

    The deal also includes a provision allowing UPS to withdraw some UPS Teamsters members from their current multi-employer pension plan, the Central States Pension Fund, and establish a new jointly trusteed single-employer plan.

    Pulling out of the plan was seen by analysts as a way to reduce labor costs and improve competition against main rival FedEx Corp (FDX.N).

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