DETROIT (Reuters) - United Parcel Service Inc. (UPS.N) and its union representing almost 250,000 workers on Tuesday kicked off negotiations for a new contract that will replace the largest labor pact in the U.S. private sector.þþThe International Brotherhood of Teamsters and UPS shook hands in Detroit, saying health care and pension will be the priority items as the two parties work to replace a six-year pact set to expire in 2008.þþ``While it is unusual to start this early, there are some very complex issues to address and we all recognize it will take time to find solutions,'' John McDevitt, UPS's senior vice president for Global Transportation Services told reporters.þþ``And an early start to negotiations greatly increases the chances of an early finish.''þþThe union has said health and retirement benefits, overtime pay, part-time wages and subcontracting are top issues for the new contract.þþ``This is the most important contract we have,'' Jim Hoffa, general president of the Teamsters, told reporters.þþHoffa, the 61-year-old son of the legendary labor leader Jimmy Hoffa, said the current contract, reached after six months of talks, is the ``richest contract'' in Teamster-UPS history and the union expects to have ``an even better contract'' the next time.þþ``This is one we want to work on without the pressure of a strike,'' Hoffa said.þþBoth parties want to avoid a strike like the two-week stoppage in 1997 that cost UPS $750 million in lost revenue.þþ``We always want to make sure we keep good health care, which is hard today with rising costs,'' Hoffa said. ``But we have a high expectation that we can improve health care and pension (from the current contract).''þþIn 2002, the union claimed the contract would inflate UPS's costs by $9 billion over six years, including wages, benefits and the cost of new jobs created under the pact. UPS had declined to comment on that figure, but said the average full- time delivery-truck driver's wages and benefits would rise about 4 percent a year.þþUPS had also agreed to create 10,000 new full-time jobs by combining as many as 20,000 part-time positions in 2002.þþHoffa said he will address new conversions to full-time jobs in this round of negotiations as well.þþ
Source: NY Times
