Hoffa presses UPS to 'stop the bleeding' by settling contract dispute

WASHINGTON - United Parcel Service can stop losing business to competitors by agreeing to a new contract with the Teamsters this weekend, union president James P. Hoffa said Friday. <br> <br> ``The company can stop the bleeding. They can make sure that we get a good contract,&#39;&#39; Hoffa said outside a Washington hotel where negotiations were to continue through the weekend. <br> <br> Atlanta-based UPS said Friday that its second-quarter profits fell slightly as the freight hauler struggled with a still-weak economy and the defection of customers who fear a strike after the Teamsters contract expires July 31. Package volume was down 2 percent in April and May from last year&#39;s levels, and fell 4 percent in June. <br> <br> ``It&#39;s even more important the company and the union conclude these negotiations in a timely manner,&#39;&#39; Scott Davis, UPS&#39; chief financial officer, said earlier this week. <br> <br> Hoffa said negotiations were at a critical phase, and it was possible to reach an agreement during the weekend. The Teamsters were prepared to stay at the bargaining table around the clock if necessary, he said. <br> <br> ``I think they should intensify their efforts as far as reaching an agreement,&#39;&#39; Hoffa said. ``They haven&#39;t done that yet.&#39;&#39; <br> <br> Health care and pensions are two of the major issues that still have not been decided. The Teamsters want the company to continue to pay for full health insurance coverage and not pass on the escalating costs to workers. The union also wants to maintain pension benefit levels and allow for later increases. <br> <br> ``The company has to work a lot harder on their numbers,&#39;&#39; Hoffa said. ``I don&#39;t think we&#39;re there yet.&#39;&#39; <br> <br> A two-week strike in 1997 cost UPS $750 million, and both sides have said they want to avoid a repeat. <br> <br> The Teamsters represent about 230,000 workers at UPS. It is the largest private-sector labor contract to be 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 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. <br> <br> UPS shares fell $1.24 to close Friday at $61.26 on the New York Stock Exchange.