UPS to Stop Insuring Spouses of Some Employees

UPS Inc. has told employees it plans to halt health-care coverage for about 15,000 spouses of nonunion workers who are covered by other plans.

The plans were outlined in a 19-page question-and-answer document posted on the Internet by news outlets last week.

A company spokesman told Transport Topics the move, which affects only a limited number of employees, was made in response to rising health-care costs. If a nonunion employee’s spouse doesn’t have coverage, UPS’ memo said the company will keep providing it.

The move doesn’t affect about 60% of UPS employees who are Teamsters. They are covered under health plans negotiated through labor agreements. Earlier this year, union members approved a new master contract, but talks continue on side agreements.

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