Highlights of the new UPS contract, which covers about 240,000 union-represented employees, include wage increases totaling $3.90 per hour over the five-year term of the agreement, an increase in the starting part-time wage rate, the creation of 2,350 full-time jobs, protections from harassment and intimidation by supervisors, protections for employees who choose to work fewer hours in a day and guaranteed vacation time for employees coming back from military leave and other improvements. The agreement also maintains the current practice of no employee contributions for monthly premiums for health insurance.
A provision in the contract that changes the health care plan for some UPS Teamsters led to the rejection of 17 local supplements and riders to the national agreement. The provision moves 140,000 UPS Teamsters from their current UPS health plan into a new plan that will be jointly administered by the Teamsters Union and employers. That change was made because during negotiations, UPS said it would cut health benefits that members currently receive in the company plan and raise the cost to employees significantly.
The Teamster negotiating committees responsible for the supplements and riders that were not approved by a majority of voting members will be talking with the members in their areas. In the meantime, the Teamsters Union will schedule meetings to engage the company in further negotiations to achieve our members' objectives.
The Teamsters National UPS Freight Negotiating Committee will be scheduling negotiations with UPS Freight soon in order to address members' concerns. That agreement, which covers about 10,000 union-represented workers, will then need to be voted on again by the members.
IN ADDITION, the Teamsters Union and UPS have agreed to an extension of the current UPS National Master Agreement and all Supplements, Riders and Addenda. The extension does not have a specific end date, but can be terminated by either side with a 30-day notice.
This means that all of the current Agreements will remain in place until the Supplements that did not receive a majority of votes have been re-voted and agreed to. Any increases in wages, pensions and health and welfare contributions that were agreed to in the new National Master Agreement will be made retroactively to August 1, 2013 but will not take effect until the Supplements have been re-voted and agreed to.
In addition, UPS has agreed not to implement the increase in retiree contributions to retiree health insurance on August 1, 2013 as set forth in letters that were sent out to Retirees in December of 2012.
As of July 23, 2013, UPS Freight and the Teamsters have agreed to an extension of the current UPS Freight National Agreement in order to give the parties time to continue negotiations. The extension does not have a specific end date, but can be terminated by either side with a 30-day notice. As with the UPS agreement, this means the current Agreement will remain in place until the Agreement has been revoted and accepted by the members. Any increases in wages and pensions will be made retroactively to Aug. 1, 2013, but will not take effect until the Agreement has been revoted and agreed to.
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