YRC Watching Teamsters' Negotiations with UPS

July 9, 2007: By Randolph Heaster:The Teamsters union has begun contract talks with UPS that could affect the direction of future negotiations with YRC Worldwide Inc. and other unionized trucking companies.

Although the current contract with the parcel giant does not expire until the end of July 2008, bargaining has already begun in hopes of obtaining a new agreement early.

One issue that UPS has put on the table is pension benefits for the company’s 238,000 union workers. According to recent trade industry reports, UPS is seeking to exit the plan with a lump-sum payment of nearly $4 billion. The company proposes to then form a joint Teamsters-UPS pension plan for future workers.

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