UPS reaches deal with Teamsters for UPS Freight division

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UPS and the Teamsters have reached agreement on a new five-year agreement covering the UPS Freight division.

Like the much bigger contract covering the larger UPS package division, the UPS Freight contract will be effective August 1. If ratification is not completed by then, the current deal will be extended, according to the Teamsters statement on the agreement.

UPS Freight serves as a mostly LTL carrier within UPS, though it does have a truckload component as well.

Compared to its better-known package division, it is relatively small. Ground revenues in the U.S. Domestic Package division in the first quarter were $7.4 billion, out of total U.S. package revenue of $10.2 billion. By contrast, freight revenue in the first quarter was list as $777 million. It is reported in the supply chain & freight division of UPS, which in the first quarter had total revenue of $3.35 billion.

No details of the contract were announced by either UPS or the Teamsters. It covers about 11,000 members of the Teamsters. By contrast, the Teamsters says it represents approximately 250,000 members in the package division. 

"No further details will be released until leaders from Teamster local unions that represent UPS Freight members meet in the next few weeks," the Teamsters said in its announcement of the deal. 

"UPS’s goal for the freight and small package agreements has been to reward the company’s employees for their contributions to its success while enabling the business to remain flexible to meet its customers’ needs," UPS said in its announcement. 

UPS did provide a small update on the approval process for its broader contract covering the package division. In a conference call earlier this week, Teamsters representatives said that while the Master Agreement had been settled, full ratification could only take place if various local issues were resolved as well. In its statement regarding the UPS Freight contract, UPS said there had been a "handshake agreement" on local issues covering more than 100,000 employees in the Central Conference, the Southern Conference and a combined Oregon/Idaho area.

"Other local agreements and supplements continue to be negotiated," UPS said.