Teamsters, United Parcel Service reach agreement on new contract

WASHINGTON, D.C. - The Teamsters reached an agreement on a new contract with United Parcel Service Inc. on Monday, 16 days before their current contract was set to expire. <br> <br> The agreement was reached after nine consecutive weeks of negotiations. Details of the tentative pact were to be revealed at a Washington news conference on Tuesday. <br> <br> ``We have a definitive agreement,&#39;&#39; said Teamsters spokesman Bret Caldwell. ``We&#39;re cleaning up the paperwork.&#39;&#39; <br> <br> UPS spokesman Norman Black confirmed the two parties had reached a tentative agreement. <br> <br> Caldwell said he expects results from a union vote on the proposed contract by mid-August. <br> <br> A two-week strike in 1997 cost UPS $750 million, and both sides said they wanted to avoid a repeat. The company, which controlled about 80 percent of the small package delivery market then, was virtually crippled when 185,000 Teamsters went on strike with the support of UPS&#39;s 2,000 unionized pilots. <br> <br> The walkout revolved around the union&#39;s demand that more part-time workers be given full-time jobs. That again was a big issue this time around, and the Teamsters sought even more full-time jobs in this contract. <br> <br> UPS customers, fearing another strike after the contract expired July 31, had already started defecting to rival companies. The Atlanta-based company said its second-quarter profits fell slightly. Package volume was down 2 percent in April and May from last year&#39;s levels, and fell 4 percent in June. <br> <br> The Teamsters now represent about 230,000 workers at UPS. It is the largest private-sector labor contract being negotiated this year. Labor analysts say the outcome will set the tone for the strength of unions for years to come. <br> <br> The negotiations also represent union president James P. Hoffa&#39;s biggest leadership test as he tries to win sizable concessions that top the previous contract negotiated by his predecessor and bitter rival, Ron Carey. Hoffa has secured a $100 million line of credit and pushed through a dues increase to build a strike fund in preparation.