The International Brotherhood of Teamsters and United Parcel Service Inc. have agreed to extend their collective bargaining agreement, and all supplements, riders, and addenda covering 237,000 workers past the July 31 expiration while negotiations continue, the union announced June 28.

Union members voted in June to ratify the contract but rejected 19 regional supplements that must be approved before the national agreement can go into effect (123 DLR A-13, 6/26/13).

The contract extension does not have a specific end date, but can be terminated by either side with 30-day notice.

Increases in wages, pensions, and health and welfare contributions agreed upon in the new national master agreement will be retroactive to Aug. 1, 2013, but will not take effect until the supplements agreements have been reached and members vote to ratify them, the Teamsters said.

Local 89 Decries Contract Extension

IBT Local 89 in Louisville, Ky., June 29 issued strong opposition to the contract extension, calling the action “deplorable” and saying the union “has essentially given away the members' right to strike.”

“This seriously degrades the leverage needed to force UPS to finally agree to a fair contract that addresses the concerns of its workers,” the local said.

The majority of Local 89 voted against ratification of the contract, which was ratified by 53 percent of union members nationally.

The Teamsters also announced that UPS has agreed it will not implement the increase in retiree contributions to retiree health insurance on Aug. 1, as set forth in letters sent to retirees in December 2012.