US - UPS Group and the International Brotherhood of Teamsters union have reached a tentative agreement regarding the future of the company's pension scheme.
The agreement will affect over 240,000 US-based UPS workers.
Under the terms of the deal, UPS will withdraw from the Central States Pension Fund (CSPF) with a goodwill payment of US$6.1bn. The company will then set up a fully funded joint trustee single-employer plan with Teamsters, to ensure the continuing viability of its pension provision.
Jim Hoffa, Teamsters’ general president, said: “This agreement will greatly benefit our members at UPS as well as Teamster members in other industries covered by pension, health and welfare funds that will receive the contribution increases.”
The contract includes wage increases and significant contributions to healthcare and pension plans. The deal was reached ahead of schedule, allowing the union plenty of time to consult with members. If ratified, the agreement will last five years before renegotiation.
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