UPS Inc. and the Teamsters union agreed to extend their contract that had been due to expire July 31 to allow more time to resolve rejected side agreements to the master contract that was passed by a narrow margin.
The extension was required because about half of the contract terms, known as riders and supplements, were voted down in rank-and-file balloting last month.
The Teamsters ratified most of the agreement for its more than 200,000 workers at UPS’ package segment last week, but the full contract cannot be passed until all of the supplements have been approved.
Those agreements, which address contract provisions such as start times, require further talks and must be approved through a new vote before the contract can take effect. The master contract covering 235,000 workers was approved by 53% of those who voted.
UPS and the union also are returning to the bargaining table to renegotiate the contract covering UPS Freight workers at the company’s less-than-truckload unit, who turned down their tentative agreement by more than a 2-1 margin.
The announcement said the extension has no specific expiration date, though it contains a provision to be terminated with 30 days’ notice by either side.
The company did not issue a separate statement, referring request for comment to the union’s announcement.
The union said UPS also has stated it won’t increase retiree health insurance costs as of Aug. 1. UPS said in December that it would impose an increase on that date.
