The agreement, which covers more workers than any other private-sector union contract in the nation, will also convert 10,000 part-time jobs to full-time and provide raises of more than 50 percent to many of the company’s 110,000 part-time employees. The pact provides a $5-an-hour raise over six years to full-time drivers and warehouse workers. For part-timers, the deal offers raises of $6 an hour over the life of the contract.

"These negotiations have taken place in an economic climate in which millions of American workers are seeing their health benefits cut and their retirement savings wiped out," said James Hoffa, president of the International Brotherhood of Teamsters. "We have shown the nation that job and benefit cuts are not inevitable."

As the August 1 contract expiration neared, the company was under tremendous pressure to reach a settlement with the Teamsters without an interruption of service. Many companies, fearing a repetition of widespread disruption in package delivery during the effective three-week strike in 1997 that shut the company down, shifted business elsewhere.

Ken Hall, cochairman of Hoffa’s negotiating team who five years ago headed talks under former president Ron Carey, noted that a contract settlement nearly fell apart several days earlier because the company was refusing to convert any part-time jobs to full-time.

Teamster members around the nation will vote on the proposed agreement over the course of the next month.  
 
 
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