Facing the threat of another crippling strike, the United Parcel Service announced yesterday that it had reached a tentative six-year pact that will give 210,000 Teamsters a 25 percent increase in wages and benefits.þþThe agreement, covering more workers than any other private-sector union contract in the nation, was a victory for the union in other ways, too. U.P.S. promised to convert 10,000 part-time jobs to full-time and to give raises of more than 50 percent to many part-timers.þþThe accord was the biggest test for the Teamsters' president, James P. Hoffa, and gives solid gains to the union at a time when organized labor and millions of workers face difficulties.þþWith a strike threatened for Aug. 1, the International Brotherhood of Teamsters capitalized on the company's eagerness to avoid a replay of the walkout in 1997 that stopped business for three weeks and caused United Parcel to lose $750 million and many longtime customers.þþÿThis appears to be a very strong contract, particularly with what else has been happening in labor,ÿ Harley Shaiken, a labor expert at the University of California, said. ÿU.P.S. did not want a strike, and that gave the Teamsters a lot of leverage. In many negotiations, the issue has been the survival of the union or the extent of the cuts. But here a big company that's very competitive was willing to pay rather than have its future damaged.ÿþþMr. Hoffa and other union leaders said the accord would be a model for millions of other union members. Teamster officials said the pact would cost U.P.S. an additional $9 billion over six years and would not reduce health benefits at a time many corporations were reducing their medical plans.þþÿThese negotiations have taken place in an economic climate in which millions of American workers are seeing their health benefits cut and their retirement savings wiped out,ÿ Mr. Hoffa said. ÿWe have shown the nation that job and benefit cuts are not inevitable.ÿþþThe chairman of United Parcel, Michael L. Eskew, acknowledged that the contract might be generous, but said it was affordable and would help the company grow by assuring customers that there would be no work stoppage for at least six years. þþLast week, executives announced that the company was losing business as customers diverted shipments to other companies because they feared a walkout.þþThe deal was unusual in that it was reached 16 days before the five-year contract expired.þþÿIt was important for us to settle early,ÿ Mr. Eskew said in a telephone interview. ÿWe wanted to give our customers the comfort of knowing that we will be there all the way through for them. Nobody wanted a return of the bad situation of 1997.ÿþþOn Monday, officials from 200 locals that represent United Parcel workers will meet in Washington to vote on accord. Mr. Hoffa predicted that the delegates would ratify the contract and that the rank and file would vote on it over the next month.þþThe agreement gives a $5-an-hour raise over six years to full-time drivers and warehouse workers who earn $23.05 an hour. That is an increase of 3.3 percent a year and almost 22 percent over six years.þþFor part-timers, the deal offers raises of $6 an hour over six years. Part-timers earn $8.50 to $20 an hour. Company executives said many part-timers would not receive the full raise because they were college students who quit after a year or two.þþThe vice president for investor relations, Kurt Kuehn, said that including increases in pension and health payments overall compensation would increase 4 percent a year.þþJames J. Valentine, a transportation analyst with Morgan Stanley, said the contract was good for U.P.S.þþÿWhen you factor in all the elements of the contract,ÿ Mr. Valentine said, ÿit will be only slightly more inflationary than their contract that's to expire. U.P.S. clearly was seeing a reasonable amount of diversion of business in late June and early July. Getting closure on this contract was critical to stem those volume losses.ÿþþUnited Parcel, whose headquarters are in Atlanta, had net income of $2.4 billion last year on revenues of $30.6 billion.þþThe contract achieves a goal similar to one that Mr. Hoffa's archrival, Ron Carey, the former union president, sought in the 1997 contract, converting part-time jobs to full-time. The company has now promised to convert 2,500 of its 110,000 part-time jobs to full-time each year in the last four years of the contract.þþMr. Hoffa boasted that he did better than Mr. Carey by persuading the company to let nearly 10,000 nonunion workers become Teamsters. Many of those employees work for subcontractors, mostly performing clerical work, and the company agreed to move those jobs in-house, automatically making many of the workers Teamsters. þþKen Hall, co-chairman of Mr. Hoffa's negotiating team and five years ago head of Mr. Carey's negotiating team, said the talks nearly fell apart on Friday because the company was refusing to convert any part-time jobs to full-time. Mr. Hoffa joined the negotiations on Friday in Washington, and until the agreement was reached late Monday, the talks continued nearly around the clock.þþThe union tried to bolster its stand by increasing dues payments and arranging a $100 million credit line. The moves were intended in part to finance strike benefits in a walkout.þþClearly viewing the accord as one of his biggest achievements, Mr. Hoffa said, ÿIt is the richest contract in U.P.S. history and will set the tone for all collective bargaining for years to come.ÿþþþþþ
Source: NY Times
