By Dow Jones Business News,
January 24, 2014, 06:58:00 PM EDT
By Laura Stevens
Teamsters union members at a the Western Pennsylvania bargaining unit again rejected part of a contract with United
Parcel Service Inc., prolonging labor headaches for the shipping company.
In a vote counted Friday, Teamsters-represented workers rejected the Western Pennsylvania supplement to the
national contract for the second time, 1,230 to 430, according to the national International Brotherhood of Teamsters.
Splinter-group Teamsters for a Democratic Union said employees rejected the contract in part over health-care
Health care has been a sticking point in these labor talks, in part because UPS is moving most of its unionized
employees to TeamCare, a multiemployer trust fund that offers group health insurance. Critics, including the TDU, say
the move results in benefit cuts--such as introducing a $100 deductible after four years. The national Teamsters group
says the new plan maintains very strong and similar benefits to the employees' current plan.
The Western Pennsylvania group is small, but its rejection of the supplement is a setback to UPS's attempts to
implement the five-year master contract that was approved in June by the company's domestic package-delivery employees.
Despite winning approval last summer, the contract can't go into effect until local unions have resolved all outstanding
supplements and riders. Seventeen were initially rejected, but a majority of these agreements have already passed,
including those for the large central, southwestern and western regions.
"We will continue to work with the Teamsters in the local areas to resolve the outstanding supplements," a UPS
In addition to Western Pennsylvania, supplements or riders for UPS Teamsters in Philadelphia, Ohio, Indiana Local
135 and Louisville, Ky., are still outstanding.
The supplements and riders involve issues--including health-care benefits, pension contributions and raises--that
must be resolved with individual local bargaining units.
The union's previous contract with UPS was set to expire in August, but the company and the Teamsters extended the
current contract while supplements and riders are negotiated.
Write to Laura Stevens at firstname.lastname@example.org
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
Copyright (c) 2014 Dow Jones & Company, Inc.