Teamster members at UPS ratify a new collective agreement.

UPS drivers and dockworkers in Canada have overwhelmingly ratified a new contract by more than 83% that guarantees wage increases and significant enhancements to the pension plan.

The five-year contract went into effect August 1 and expires on July 31, 2015. Teamsters Canada represents about 5,600 drivers and dockworkers.

“I believe that this represents the best collective agreement that our respective parties could possibly negotiate,” said Val Neal, director of Teamsters Canada’s Parcels and Small Packages Division. “Together, we have built a solid foundation for the future.”

Neal said one of the contract’s highlights is that language was modified that removes the 30-year pension cap. The denominator was increased from $56.50 past service to $78.00 future service effective Jan. 1. 2011.  Some of the other highlights were:

• new language that requires the company to reduce excessive overtime when requested by the employee, and other issues concerning hours of work.
• an increase in starting wages for all new hires.
• a total increase in wages of $2.80 per hour over the five years
• a $500 signing bonus for all full and part-time workers as of the date of the contract ratification.

The agreement was reached over about four weeks of negotiations. Neal said rank and file members were given the opportunity to play an active role in the bargaining process, which resulted in the overwhelming ratification.

“Workers employed by small parcel delivery companies who are represented by the Teamsters definitely benefit from better conditions than their non-unionized peers,” said Robert Bouvier, president of Teamsters Canada. “A company’s success depends on its human capital, and our organization is the only one able to defend workers’ best interests.”

Neal said he was grateful for all the hard work put into the negotiations by Teamsters, especially the work of Stan Hennessy, International Vice President and President of Local 31 in Vancouver, British Columbia, Assistant Parcels and Small Package Division Directors Gerry Boutin and Kelly Gorzen.

To view the new collective agreement click here.