April 8, 2008 9:20 AM, EDT

Teamsters Ratify 5-Year Contract with UPS Freight

UPS Inc.

The Teamsters union and UPS Inc. said Monday that Teamsters members had overwhelmingly ratified their first national contract at UPS Freight, the less-than-truckload unit of UPS Inc.

The contract covers about 9,900 workers, both the Teamsters and UPS said in separate statements.

Workers at UPS freight — the former Overnite Corp. acquired by UPS in 2005 for $1.3 billion — backed the tentative agreement announced in late March by an 8-1 margin, said Ken Hall, director of the union’s package division.

The agreement runs through July 2013 and provides a total wage increase of $4.35 an hour over that period, as well as enhanced benefits, the union said.

The national UPS Freight agreement was reached on March 24 and approved a day later by local representatives. It is modeled after an agreement that was reached at a terminal in Indianapolis and ratified last October by a 107-1 vote.

“This contract ensures that UPS Freight can continue moving toward its goal of providing the very best service and value in the trucking industry,” Jack Holmes, president of UPS Freight, said in a statement. “It's good for our people, good for our customers and good for the company.”

UPS Inc. is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.