Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, September 28, 1993 TAG: 9309280106
SECTION: BUSINESS PAGE: B7 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The handshake agreement came after more than six months of negotiations in Washington and three days before an extension on the previous contract was to expire. Members of the union earlier this month authorized Teamsters leaders to call a strike against Atlanta-based UPS if the talks failed.
UPS operates a parcel-sorting hub in Roanoke.
The union, which represents 165,000 UPS workers across the country, had assailed the company's initial offer as "insulting." But a new offer was made over the weekend, leaving the two sides about 20 cents apart on the pay issue.
Teamsters spokesman Bernie Mulligan said the union would recommend ratification of the agreement.
"With the support of both UPS and the union, we have every reason to believe it will be ratified overwhelmingly," Dave Murray, UPS chief negotiator, said at a news conference.
"All UPS services will now continue as normal while the vote is conducted," he said.
He said results of the voting should be known in three or four weeks.
Under the agreement, full-time workers, now making $17.70 per hour, would receive a raise of 60 cents an hour in the first year and an additional 55 cents an hour in each of the subsequent three years.
Full-timers also receive benefits amounting to $10.58 per hour. Under the new contract, those benefits would rise by 40 cents an hour in the first year, 45 cents in the second year, 45 cents in the third and 50 cents in the fourth.
Increases in the UPS contribution to health, welfare and pension plans would amount to a total $1.80 an hour over the life of the agreement.
The pact also provides for union workers to participate in new ventures by UPS, which now uses mostly non-union subcontractors for new services.
It also enhances the grievance procedure for workers and establishes a new labor-management committee to settle problems during the life of the contract.
For the first time, the contract would allow drivers to lay over for the night away from home so the company can cover more ground and speed deliveries.
Currently, drivers go to a destination, pass off their loads to another driver and return home the same day.
The previous three-year contract between UPS and the Teamsters expired July 31, but negotiations continued under a contract extension.
That extension was to expire 12:01 a.m. Thursday.
UPS is the world's largest package distribution company, delivering more than 11.5 million packages a day with more than 1.2 million regular customers.
It is the nation's largest employer of Teamsters.
by CNB