UPS Sees $1.05 Billion Charge With Teamster Contract

Discussion in 'The Latest UPS Headlines' started by cheryl, Apr 25, 2014.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Sees $1.05 Billion Charge With Teamster Contract - Bloomberg

    United Parcel Service Inc. (UPS) will record a pretax cost of about $1.05 billion this quarter for changes to union workers’ health benefits under a five-year contract approved by the International Brotherhood of Teamsters.

    The world’s largest package-delivery company will make a pretax cash payment of $2.27 billion to multiemployer funds that will administer active and post-retirement medical benefits for Teamster-represented employees, according to a filing today. The contract covers 253,000 workers.

    Employees will see annual raises averaging 2.4 percent, and UPS is setting a $10-an-hour wage for new part-time workers. UPS last changed its starting wage in the 1990s.