The International Brotherhood of Teamsters has reached a tentative contract agreement with UPS that provides the largest wage and benefit increases in the company's history for 210,000 Teamsters.

Teamsters President James P. Hoffa and UPS chief Executive Officer Michael Eskew announced the agreement at a joint press conference on July 16.

The six-year agreement, which is valued at $9 billion, easily surpasses the economic and non-economic package negotiated following the 1997 strike.

The pact contains average annual wage and benefit increases of $1.46 per year ($8.75 total over the life of the contract), compared to $.98 in 1997.

"Today, we celebrate the fact that we won the richest contract in UPS history," said Jim Hoffa, Teamsters General President. "In an economic climate in which many workers are losing their retirement savings and having their health benefits slashed, this contract protects our UPS members and their families and sets a new standard for American workers."

The terms of the six-year agreement include: Wage increases of $5 over the life of the contract; a new cost of living (COLA) formula that protects employees from future inflation; Health and Welfare and Pension Increases of $3.75 over the life of the contract; $1 "Catch-up" increase for part-timers $.20) which brings their total wage increase to $6 over the life of the contract; Health Insurance for part-time retirees; 10,000 new full-time jobs (2,500 jobs in the third, fourth, fifth and sixth year of the contract); $.50 wage increase in the start rate for part-timers after 90 days; increases in pension benefits for part-timers; first ever long-term disability plan; the creation of more than 10,000 new Teamster jobs through the elimination of subcontractors and union recognition for job classifications that had been diverted from the union; and commitment from the company to preserve Teamster bargaining unit jobs; no double-breasting.

"Beyond the economic package we negotiated contract language that will protect, preserve and increase Teamster jobs well into this company's future," said Ken Hall, Co-Chairman of the Teamster National Negotiating Committee.

These changes included solving several long-term non-economic issues that had impacted UPS employees for the last decade including: language limiting excessive mandatory overtime, supervisors doing union work and improved safety and health protection.

With more than 210,000 Teamsters at UPS, this is the largest private single-employer collective bargaining agreement being negotiated in North America this year. The current contract would have expired on July 31, 2002. The union and company exchanged initial proposals on January 30.

The tentative agreement was reached early Monday evening after nine straight weeks and a marathon weekend of bargaining. Hoffa credited the 60-member Teamster National Negotiating Committee and co-chair Ken Hall for the UPS contract victory.

"This contract shows what workers can do through collective bargaining," Hoffa said. "The Teamsters brought years of experience to the table and we put that experience to work for working families. This contract proves that workers can win and maintain good wages and benefits if they stand together."

The Teamsters National UPS Negotiating Committee unanimously recommended acceptance of the agreement. The contract will now go to the membership for a vote. Ratification results are expected in mid-August.