UPS Reports $1 Billion Quarterly Earnings, Agrees to New Contract with Teamsters

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    Atlanta-based United Parcel Service (UPS) and the Teamsters union agreed on a new five-year contract that will create 2,000 new full-time jobs and avoid any risk of losing business even with in threat of a strike.

    The new contract covers 250,000 employees and will include ample pay raises for tenured employees as well as generate higher pay for incoming part-time employees.

    The existing contract with Teamsters, which represents package and freight operation employees, will expire in July, with the new contract taking effect Aug. 1.

    Along with the new contract, UPS also announced a new quarterly profit of $1 billion for the first three months of 2013.

    The earnings were the shipping company’s highest since a $970 million profit in the first quarter of 2012.

    Online shopping for sales, gift card redemptions and returns have all been beneficial for this year’s quarterly growth.

    “The combination of all three of those led to a pretty busy time the first couple of weeks of January,” UPS chief financial officer Kurt Kuehn told the AJC. “The rest of the quarter returned to a more typical pace — and global economic uncertainty remains.”

    UPS’s first 2013 quarterly earnings grow revenue to $13.4 billion, 2.3 percent higher than in 2012.

    “UPS is one of the few companies in the world that not only takes advantage of trends but can actually influence trends,” Kuehn said. “In the United States, UPS has helped drive e-commerce growth by offering retailers shipping and logistics options, and it is increasing its focus on e-commerce growth in Europe.”

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