NATIONAL MASTER UNITED PARCEL SERVICE AGREEMENT For

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NATIONAL MASTER UNITED PARCEL SERVICE

AGREEMENT

For the Period:

August 1, 2018 2023 through July 31, 2023 2028

covering:

[No change]

ARTICLE 1. PARTIES TO THE AGREEMENT

[No change]

Section 1. Operations Covered

[No change]

Section 2. Employees Covered

[No change]

Section 3. Transfer of Company Title or Interest

[No change]

Section 4.

[No change]

ARTICLE 2. SCOPE OF THE AGREEMENT

Section 1. Single Bargaining Unit

[No change]

Section 2. Riders

[No change]

ARTICLE 3. RECOGNITION, UNION SHOP AND

CHECKOFF

Section 1. Recognition

(a) The Employer recognizes and acknowledges that the National

Union Committee and Local Unions affiliated with the

International Brotherhood of Teamsters are the exclusive

representatives of all employees of the Employer in covered

classifications. The employees and Unions covered under this

Master Agreement and the various Supplements, Riders and

Addenda thereto shall constitute one (1) bargaining unit.

(b) When the Employer needs additional employees, it shall give

the Union equal opportunity with all other sources to provide

suitable applicants, but the Employer shall not be required to hire

those referred by the Union.

If employees are hired through an employment agency, the

Employer shall pay the employment agency fee, if any, due from

the employee. However, if the Union has been given equal

opportunity to furnish employees, as provided herein, and if the

employee is retained through the probationary period, this fee

need not be paid until the thirty-first (31st) day of employment,

except as otherwise provided in the Local Union Supplements,

Riders and Addenda.

Business agents and/or a steward shall be permitted to attend new

employee orientations to talk about the benefits of Union

membership. The Employer agrees to provide the Local Union at

least one week’s notice of the date, time, and location of such

orientation. Upon request, the Union representative will be given

a list of the names of the employees attending orientation no later

than at the meeting. The sole purpose of the business agent’s or

steward’s attendance shall be to encourage new employees to join

the Union. The steward shall remain on the clock for the actual

time spent in the meeting up to fifteen (15) minutes for that

purpose if the orientation is held during his or her their normal

working hours at his or her their normal place of work.

Section 2. Union Shop and Dues

[No change]

Section 3. Dues Checkoff and Joint Dues Committee

The Union and the Employer will establish a Joint Dues

Committee to review the deduction and remittance of union dues.

This Committee is charged with the responsibility of ensuring

that dues are accurately deducted and remitted in a timely manner

to the Local Unions. It is anticipated that this Committee shall

serve as a source of continuing study regarding the most efficient,

accurate, and expeditious deduction and payment of dues,

including exploring electronic solutions. The Union and the

Employer will establish procedures for the operation of this

Committee.

The parties reserve the right to correct inadvertent errors and omissions.

Where no reference is made to a specific Article or Section thereof, such Article and Section are to

continue as in the current National Master Agreement, as applied and interpreted during the life of such

Agreement. Additions and new language are bold and underlined.

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No existing bargaining unit employee currently performing work

in the payroll department will be laid off or suffer a loss of their

current payroll type position as a result of this Section.

The Employer agrees to deduct from the pay of all employees

covered by this Agreement the initiation fees, dues and/or

uniform assessments of the Local Union having jurisdiction over

such employees. The Local Union will provide the Employer a

weekly amount to be deducted from each employee. The Local

Union will individually specify the weekly amount to be deducted

for initiation fees, union dues and/or assessments. For initiation

fees and assessments, the Local Union will notify the Employer

the number of weeks these deductions are to be taken from the

employee. Notification of deductions to be made by the Employer

for the benefit of the Local Union must be received at least one

(1) month prior to the date the deduction is to be made. The

obligation of the Local Union to provide this information shall be

satisfied by the transmission of a computer file in mutually

agreeable format. The Employer shall deduct the weekly dues

from each vacation week. This will be implemented within six (6)

months of ratification of this Agreement.

The Employer shall make no deductions that are not listed on the

Local Union’s monthly or weekly checkoff statement in those

locations which send a checkoff statement to the Employer. In the

event the Employer improperly deducts too much dues money,

the amount improperly withheld shall be remitted to the involved

employee(s) on the second (2nd) scheduled workday following

notification to the Employer. The Local Union(s) shall return any

overpayment(s) to the Employer within one (1) week following

written notification from the Employer.

The Employer will provide a remittance to the Local Union

within fifteen (15) days following the check date the deduction

was taken. With each remittance, the Employer shall submit a

report, by center and/or sort, listing all employees alphabetically

with their social security number and job classification. For those

employees who had no deduction for the week, the Employer will

provide a reason. In the event the Local Union does not want to

receive a weekly remittance, the Employer will provide a

monthly remittance by the fifteenth (15th) day of the following

month. However, if this option is chosen, the Employer will still

make weekly deductions as described above.

The Employer will provide a list of peak season employees to the

Local Union. The Company agrees to honor the dues checkoff

cards for peak season employees.

Where law requires written authorization by the employee, the

same is to be furnished in the form required. Following

ratification of this Agreement, the Joint Dues Committee will

meet to adopt a standard, electronic membership and dues

checkoff form approved by the International Union that will

be included as part of the Company’s application and

orientation processes. The Joint Dues Committee will also

meet to adopt an acceptable digital platform and methods for

the collection, storage, and distribution of the electronic

membership and dues checkoff forms. Electronic

membership and dues checkoff forms can only be

implemented upon agreement of the Joint Dues Committee.

No deduction shall be made which is prohibited by applicable

law.

Any Local Union shall have the option of monthly deductions

with monthly remittance on or before the fifteenth (15th) day of

the same month.

On written request of the employee, payroll deductions will be

made to purchase U.S. Savings Bonds for said employee.

The Employer agrees to deduct from the paycheck of all

employees covered by this Agreement voluntary contributions to

DRIVE. DRIVE shall notify the Employer of the amounts

designated by each contributing employee that are to be deducted

from his/her their paycheck on a weekly basis for all weeks

worked. The phrase “weeks worked” excludes any week other

than a week in which the employee earned a wage. The Employer

shall transmit to DRIVE National Headquarters on a monthly

basis, in one (1) check, the total amount deducted along with the

name of each employee on whose behalf a deduction is made, the

employee’s Social Security number and the amount deducted

from that employee’s paycheck. The International Brotherhood

of Teamsters shall reimburse the Employer annually for the

Employer’s actual cost for the expenses incurred in administering

the weekly payroll deduction plan.

The Employer agrees to deduct certain specific amounts each

week from the wages of those employees who shall have given

the Employer written notice to make such deductions. The

Employer will remit amounts deducted to the applicable credit

union once each week. The amount so deducted shall be remitted

to the applicable credit union once each month or weekly. The

Employer shall not make deductions and shall not be responsible

for remittance to the credit union for any deductions for those

weeks during which the employee’s earnings shall be less than

the amount authorized for deductions.

In the event the Employer has been determined to be in violation

of this Article by a decision in the grievance procedure, and if

such Employer subsequently is in violation thereof after receipt

of seventy-two (72) hours’ written notice of specific

delinquencies, the Local Union may strike to enforce this Article.

However, such strike shall be terminated upon the delivery

thereof. Errors or inadvertent omissions relating to individual

employees shall not constitute a violation.

Section 4. Work Assignments

[No change]

Section 5.

[No change]

Section 6.

[No change]

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Section 7. Supervisors Working

(a) The Employer agrees that the function of supervisors is the

supervision of Employees and not the performance of the work

of the employees they supervise. Accordingly, the Employer

agrees that supervisors or other employees of the Employer who

are not members of the bargaining unit shall not perform any

bargaining unit work, except to train employees or demonstrate

safety, or as otherwise provided in the applicable Supplement,

Rider or Addendum. However, in the case of Acts of God,

supervisors shall comply with the procedures in subsections (b)

and (c) and may only perform bargaining unit work until

bargaining unit employees are available. The Employer shall

make every reasonable effort to maintain a sufficient workforce

to staff its operations with bargaining unit employees. The

Employer also agrees that supervisors or other employees of the

Employer who are not members of the bargaining unit shall not

perform bargaining unit work in preparing the work areas before

the start of the Employer’s hub, preload or reload operation, nor

shall the Employer send any bargaining unit employee home and

then have such employee’s work performed by a supervisor or

other employees of the Employer who are not a member of the

bargaining unit.

(b) When additional employees are necessary to complete the

Employer’s operations on any shift or within any classification,

the supervisor shall exhaust all established local practices to first

use bargaining unit employees including where applicable,

double shifting, early call-in, and overtime.

apply with regard to inside work. Within each building, each

operation will maintain appropriate list(s), by seniority, of those

part-time employees requesting coverage work. It will be the

employees’ responsibility to sign up on the appropriate list. The

Company shall post such lists and employees who are interested

in adding their names to the lists shall do so on the first working

day of each month. It will be the employee’s responsibility to

make sure his/her their contact information is correct. Employees

who are unavailable to work on three (3) separate occasions

within a calendar month shall have their names removed from the

coverage list. Those employees shall be eligible to re-sign the list

the following month. When coverage work is available, the

Company will use the appropriate list to fill the required

positions, and such employees will work as assigned. The

employee must be qualified for the available work and double

shift employees shall have seniority among themselves. No

employee is allowed to work more than two (2) shifts in any

twenty-four (24) hour period. Local call verification practices and

procedures shall remain in place.

Nothing contained in this Section shall change existing practices

or procedures covering full-time work.

(d) If it is determined at any step of the grievance and/or

arbitration procedure that this Section, or a “supervisor working”

provision in a Supplement, Rider or Addendum, has been

violated, the aggrieved employee will be paid as follows: (i) if the

actual hours worked by the supervisor amounts to two (2) hours

or less, the aggrieved employee will be paid for the actual hours

worked by the supervisor at the rate of double time the

employee’s rate of pay at the time of the incident; or (ii) if the

supervisor works more than two (2) hours, the aggrieved

employee shall be paid four (4) hours at straight time or actual

hours worked at double time the employee’s rate of pay at the

time of the incident, whichever is greater. If no aggrieved

employee can be identified, the payment will be made to the

grievant. Such remedy shall be in addition to any other remedies

sought by the Union in the appropriate grievance procedure.

If a Supplement, Rider, or Addendum does not have a provision

requiring notice to the steward when a supervisor works the

following shall be incorporated: “In the event a supervisor does

perform bargaining unit work, the Employer shall notify the

appropriate shop steward as soon as possible.”

In the event that any individual supervisor is found to be in

violation of the first paragraph of this Subsection three (3) times

in any nine (9) month rolling period, the grievance shall be paid

at triple quadruple time the employee’s rate of pay for the hours

specified in the first paragraph of this subsection.

ARTICLE 4. STEWARDS

[No change]

ARTICLE 5. SANITARY CONDITIONS

[No change]

ARTICLE 6.

Section 1. Extra Contract Agreements

[No change]

Section 2. Workweek Reduction

[No change]

Section 3. New Equipment

Where new types of equipment and/or operations, for which rates

of pay are not established by this Agreement, are put into use after

the ratification date of this Agreement within operations covered

by this Agreement, rates governing such operations shall be

subject to negotiations between the parties. This paragraph shall

apply to all new types of equipment including office and clerical

equipment. In the event an agreement cannot be reached within

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sixty (60) days after the date such equipment is put into use, the

matter may shall be submitted to the National Grievance

Committee for final disposition. Rates agreed upon or awarded

shall be effective as of the date equipment is put to use

Section 4. Technological Change

1. Technological change shall be defined as any meaningful

significant change in equipment or materials which results in a

meaningful significant change in the work, wages, hours, or

working conditions of any classification of employees in the

bargaining unit or diminishes the number of workers in any

classification of employees in the bargaining unit. Such changes

could include, but are not limited to, the use of drones or

driverless vehicles to transport, deliver or pick-up packages, or

platooning. During the term of this Agreement such changes

shall not include the use of drones or driverless vehicles to

transport, deliver or pick up packages, platooning or shifting

but in the event the Employer desires to implement any

change described in this sentence, it shall be required to notify

the National Negotiating Committee six (6) months in

advance of any such change and shall be required to bargain

the effects of any such change. If no agreement is reached

between the parties the matter shall be resolved under Article

2. The Employer and the Union agree to establish a National

Teamster/UPS Committee for Technological Change, consisting

of an equal number of representatives from the Union and UPS.

The Committee shall meet upon request, but not less than three

(3) times per year, to review any planned proposed technological

changes covered by this Section. As part of this meeting, the

Committee shall discuss whether the planned technological

change violates any provision of this Agreement. Further, the

Employer will review any training required for bargaining

unit employees to perform new or modified work generated

as a result of the new technology or to utilize the new

technology, as necessary.

3. The Employer will shall simultaneously advise the affected

Local Unions and the National Teamster/UPS Committee for

Technological Change of any proposed technological changes

when the change has entered the field testing phase or at least six

(6) months prior to the implementation of such change except

where the change was later determined in which case the

Employer shall provide as much notice as possible. In all cases,

the Company will provide notice of any technological change

covered by this Section before the technology is implemented.

The Employer agrees that prior to any change, it shall notify

the Package Division and the affected Local Union(s) in

writing with the specific details and information then

available and then meet jointly with them to inform them of

the proposed changes and to resolve questions raised in

connection with the effects of the proposed change. The

information will be provided at least forty-five (45) days prior

to the meeting. During this joint meeting the Employer and

the Union shall reduce to writing all agreed upon issues and

both parties shall sign the written document in

acknowledgement of such agreement. The parties shall also

reduce to writing all unresolved issues, if any, and they shall

be referred directly to the National Teamster/UPS Committee

for Technological Change. This meeting shall be completed

where practical at least forty-five (45) days prior to the

implementation of the proposed change. The change may not

be implemented until the forty-five (45) days’ notice is

provided and the meeting is completed unless the change is

dictated by emergency conditions. The Union shall not

unreasonably delay the scheduling or completion of the

requested meeting. Any unresolved issues which have been

reduced to writing, will be resolved pursuant to Article 8.

4. The Employer shall be required to provide the National

Teamster/UPS Committee for Technological Change, any

relevant information to the extent available regarding the

technological changes.

5. The Employer will meet with the National Teamster/UPS

Committee for Technological Change, promptly after notification

to ne-gotiate regarding the effects of the proposed technological

changes.

The Technological Change Committee shall also have the right

to raise and attempt to resolve any claim that the Company’s

technological change violates any provision of the National

Master Agreement or the applicable Supplement, Rider or

Addendum.

4. If a technological change creates new work that replaces,

enhances or modifies bargaining unit work, bargaining unit

employees will perform that new or modified work. The

Employer shall provide bargaining unit employees with training

required to utilize the new technology, if necessary.

6. In the event that the National Committee cannot reach

agree-ment on the dispute, either party may refer all outstanding

disputes to the National Grievance Committee for expedited

resolution in accordance with the provisions of Article 8 in order

to determine if the Employer has violated the provisions of this

Section or if the change will result in a violation of any other

provision of the collective bargaining agreement.

7.5. This Section shall supersede any Supplemental, Rider or

Addendum provision on the same subject.

Section 5. Hourly Training

1. It is agreed that Teamster represented employees, on a

voluntary basis, may train other employees. UPS reserves the

right to choose to use or not to use Teamster represented trainers

to fulfill its training needs.

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2. Trainers shall be paid a fifty cents ($.50) one dollar ($1.00)

per hour training premium for each hour spent training.

3. Drivers training helpers, in accordance with Supplemental

Agreements, and two (2) on the car rides for the purpose of route

knowledge shall not be entitled to the training premium.

4. The parties shall establish a National Training Committee. The

Committee shall be empowered to hear and resolve any disputes

that may arise over these issues. Unresolved disputes will be

subject to the National Master Grievance Committee.

5. Each Supplemental area shall meet and agree or continue

existing agreements on the details of the application of this

agreement in their area in accordance with Supplemental

language. Other issues left for resolution at this level include, but

are not limited to, the minimum qualifications for trainers, if any,

the number of hours to be worked by the trainer, and the

application of Supplemental language concerning compensation

for work performed in higher classifications. Disputes shall be

resolved in accordance with paragraph 34.

6. Trainer selection and assignments to on the job training will be

done in accordance with supplemental seniority provisions,

providing the trainers have the necessary qualifications and skills

for the job.

7. The training records that a Teamster represented trainer can be

required to complete for drivers, are those previously agreed to

by the parties. If the Employer wishes to amend these forms, it

will first meet and agree with the National Training Committee.

Such agreement will not be unreasonably withheld. No training

record or verbal report by the trainer will be relied upon to

discipline any employee or to evaluate any seniority employee’s

performance.

8. If a trainer is removed from the qualified list by the Employer,

that employee and the Local Union shall have access to the

grievance procedure. If the Union establishes that the removal

was not for just cause, the grievant shall be reinstated and shall

be entitled to any lost training premium the trainer would

have earned.

9. No trainer shall be required to train in any method which

violates the Collective Bargaining Agreement.

10. Teamster represented trainers will not be permitted to perform

discipline an employee or recommend disciplinary action.

11. Teamster represented trainers will not be required to make

decisions or recommendations regarding the attainment of

seniority, by their trainees. The decision as to whether a trainee

attains seniority will be made solely by UPS management.

12. Employees to be retrained, after qualifying in their

classification, and seniority employees scheduled for safety rides,

may request that a non-bargaining unit employee perform that

training, in lieu of a Teamster represented trainer. Such requests

will be honored.

13. Trainers will not be held liable for auto accidents incurred by

the trainee.

Section 6. Technology and Discipline

No driver employee shall be discharged disciplined based solely

upon information received from GPS, telematics, or any

successor system that similarly tracks or surveils an driver’s

employee’s movements unless he/she engages they engage in

dishonesty (defined for the purposes of this paragraph as any

intentional act or omission by an employee where he/she intends

they intend to defraud the Company). A driver’s failure to

accurately recall what is reflected by the technology shall not by

itself be considered dishonesty. The Company must confirm by

direct observation or other corroborating evidence any other

violations warranting discharge. The degree of discipline dealing

with off-area offenses shall not be changed because of the use of

the above-mentioned systems.

No driver employee shall be issued a warning notice based solely

upon the above-mentioned systems without first having a verbal

counseling session on an identical infraction (e.g. two seat belt

violations). Any such discipline shall also comply with applicable

Supplemental disciplinary procedures and requirements.

Vehicles may not be equipped with inward-facing cameras.

Forward-facing capability of cameras shall not be used for

discipline. Further, there shall be no in-cab audio recording

or videotaping. Any functionality included in driver-facing

cameras (including their driver recording and monitoring

functionality) will be disabled and rendered inoperable to

prevent recording and monitoring of in-cab activities. Upon

request, evidence of the disabled functionality of any driver-

facing camera shall be provided to the Package Division.

Driver-facing sensors will only be used for the purpose of

triggering in-cab audible alerts related to distracted driving

and for the purpose of identifying coaching/counseling

opportunities related to the same during Integrad or the

thirty (30) day driver qualification/probationary period.

Driver-facing sensors will not be used for any purpose during

any phase of a disciplinary process or be the sole basis for

disqualifying a driver during the thirty (30) day period.

The Company acknowledges that there have been problems with

the utilization of technology in the past. Therefore, at the request

of the Union’s Joint National Negotiating Committee Co-Chair a

meeting will be scheduled with the Company Co-Chair to discuss

any alleged misuse of technology for disciplinary purposes and

what steps are necessary to remedy any misuse.

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ARTICLE 7. LOCAL AND AREA GRIEVANCE

MACHINERY

[No change]

ARTICLE 8. NATIONAL GRIEVANCE PROCEDURE

Section 1.

All grievances and/or questions of interpretation arising under the

provisions of this National Master Agreement shall be resolved

in the following manner:

Deadlocked cases at an applicable first level grievance panel

involving only National Master language may shall be submitted

directly to the National Master Panel for decisions, unless

mutually agreed otherwise by the Panel Co-Chairs. Those

deadlocked cases which cannot be decided by a lower panel

because of disagreement over the interpretation of National

Master language may be submitted to the Master Panel for

interpretation. Requests for interpretations with no factual case to

be decided will be heard by the Master Panel by mutual

agreement of the Co-Chairpersons. Interpretations rendered on

factual cases by the National Grievance Committee will be sent

back to the lower panel to be used to resolve the factual case.

The Committee shall be composed of an equal number of

Employer and Union representatives. The National Grievance

Committee shall meet upon call of the Chairman of either the

Employer or Union representatives on the National Grievance

Committee. The National Grievance Committee shall adopt rules

of procedure which may include the reference of disputed matters

to subcommittees for investigation and report with the final

decision or approval, however, to be made by the National

Grievance Committee. If the National Grievance Committee

resolves any dispute by a majority vote of those present and

voting, such decision shall be final and binding upon all parties.

When a case is docketed with the National Grievance Panel, a

docketing fee will be applied as specified in the National Master

UPS Agreement Rules of Procedure.

Section 2. Work Stoppages

[No change]

Section 3.

[No change]

Section 4.

[No change]

Section 5.

[No change]

Section 6.

[No change]

Section 7.

Deadlocked cases referred from the National Grievance

Committee to binding arbitration pursuant to this Article, will be

governed by the following procedures:

1. The arbitration process will be administered by the offices of

the American Arbitration Association, as follows:

Somerset, NJ Eastern, Central and Southern

Fresno, CA Western

2. The current arbitrators will continue to serve, except as

changed pursuant to paragraphs 4 and 7 below. Cases will be

assigned to arbitrators on a rotating alphabetical basis within each

Region based upon the order in which it was docketed at the

National Grievance Committee.

3. The panels will consist of the following number of arbitrators

who hear American Arbitration Association administered cases

in each Region of the IBT:

Eastern 9

Central 3

Southern 3

Western 5 9

4. Either party shall have the right, with written notice by

December 1 of any year, to require an exchange of lists of two (2)

times the number of arbitrators to be assigned to each regional

panel by January 1, and on January 15 will alternatively strike

from the lists until the correct number of arbitrators is left for each

panel. Unless the parties mutually agree otherwise, any arbitrator

proposed by the Employer or Union must be a member of the

National Academy of Arbitrators and reside within the

geographical area covered by the panel. This provision can only

be invoked by each party two (2) times during the life of this

Agreement.

5. Each arbitrator shall offer one or more potential hearing date(s)

within six (6) months of the assignment of the case by the AAA

or within six (6) months of a cancellation by either party as

outlined below. If the arbitrator fails to offer a timely date, or a

timely rescheduled date after a cancellation, the case shall be

reassigned to the next arbitrator to be assigned based on the

rotating alphabetical list. If an arbitrator fails to offer a timely

date on four (4) occasions in a twelve (12) month period, he/she

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they shall be stricken from the panel of arbitrators at the written

request of either party. The parties shall fill any vacancy pursuant

to the procedures set forth in paragraph 4.

6. Once a case is assigned to an arbitrator it will remain with that

arbitrator until it is concluded, except in the case of a

reassignment specified in paragraph 5.

7. The parties may mutually agree in writing to remove any

individual arbitrators from the panel at any time. Each party may

unilaterally remove two (2) arbitrators during the month of June

each year upon giving ten (10) calendar days’ notice specifying

the arbitrator to be removed. The other party shall have the right

to remove two (2) arbitrators within ten (10) calendar days from

receiving the notice. The parties shall, within forty-five (45)

calendar days, exchange a list of arbitrators double the number of

arbitrators stricken. The lists will be combined and struck fifteen

(15) days later. This process shall also be used to fill vacancies

that might occur for other reasons.

8. Except by mutual agreement arbitrations will be scheduled for

10:00 a.m. until at least 5:00 p.m.

9. There shall be no more than one (1) cancellation of arbitration

dates by either party in the hearing of any single arbitration case,

except as permitted by the arbitrator with good cause.

10. The parties shall share equally the American Arbitration

Association’s and the arbitrator’s fees and expenses for the

arbitration or settlement (including rental of the hearing room).

The party requesting a cancellation will pay any cancellation fees.

11. The location of the arbitration will be determined by mutual

agreement, taking into account the travel requirements of

witnesses, counsel, and the arbitrator. In the event that the parties

are unable to agree on the location, the arbitrator will decide. All

hearings will be held at the American Arbitration Association

offices unless the parties mutually agree on an alternate site.

12. Any or all of the foregoing may be modified in writing by

mutual agreement of the parties at any time.

ARTICLE 9. PROTECTION OF RIGHTS

Section 1. Picket Line

[No change]

Section 2. Struck Goods

[No change]

Section 3.

[No change]

Section 4.

[No change]

Section 5. Grievances

[No change]

ARTICLE 10. LOSS AND DAMAGE

Section 1.

[No change]

Section 2.

[No change]

Section 3.

The Employer shall reimburse employees for loss of personal

money or personal property in a holdup or vehicular accident

while on duty up to a maximum of two hundred dollars ($200.00)

per employee, provided the employee promptly reports such

holdup or vehicular accident to the Employer and the police, and

cooperates in the investigation of such holdup or vehicular

accident. Employees shall be paid for all time involved. However,

reimbursement for cash loss shall be limited to one hundred

dollars ($100.00). In addition, if employees experience theft or

vandalism issues related to personal vehicles in designated

employee-parking lots, the applicable Local Union may notify

the District Labor Manager of the issues and request a

meeting with Security to discuss specific concerns, as well as

possible steps that can be taken to enhance security in the

affected parking lot. In addition, if an employee whose

personal vehicle was subject to theft or vandalism while

parked in a designated Company parking lot provides

immediate notice to the Company and obtains a police report,

the Company will reimburse the employee up to five hundred

dollars ($500), to the extent the theft or vandalism is not

covered by the employee’s insurance.

ARTICLE 11. WEEKEND WORK SCHEDULES

Effective upon ratification previously classified Article

22.4(b) drivers shall be reclassified to Regular Package Car

Drivers (RPCDs), placed in seniority according to the

applicable Supplement, Rider or Addendum and have their

pay rate adjusted to Top Rate or applicable Article 41,

Section 2.c. progression rate, effective August 1, 2023.

Further, they will be covered by the Article 37 “9.5”

provisions and “8 hour requests” as well as all other rights

and benefits as an RPCD.

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The parties agree in those buildings where the Employer is

currently utilizing or elects to utilize in the future, a six (6)

day package delivery operation the following will apply:

Section 1. Process of Reclassifying

a. RPCD workweeks shall be Monday through Friday or

Tuesday through Saturday. These two workweek

schedules will be staffed in accordance with the

applicable Supplement, Rider or Addendum except as

follows:

(i) Drivers hired as a RPCD before August 1, 2019

shall not be forced to a Tuesday-Saturday workweek

but shall be allowed to bid such workweek according

to the applicable Supplement, Rider or Addendum.

(ii) Drivers hired as a RPCD after August 1, 2019

may bid either a Monday-Friday or Tuesday-

Saturday workweek as may be determined in the

applicable Supplement, Rider or Addendum.

(iii) Previously classified Article 22.4(b) drivers shall

remain on a Tuesday-Saturday workweek unless the

number of necessary Tuesday-Saturday workweek

schedules can be covered by RPCDs described in

Paragraphs (i) or (ii) above.

(iv) If the number of Tuesday-Saturday workweek

schedules cannot be covered by the drivers in

Paragraphs (ii) or (iii), the Company may assign the

open Tuesday-Saturday workweek schedule(s) to the

junior RPCD hired after August 1, 2019 according to

the applicable Supplement, Rider or Addendum.

(v) In any buildings without sufficient staffing to

handle Saturday delivery needs after the process set

forth above, the Local Union and the Company will

meet and resolve on a local basis. If not resolved

within sixty (60) days of ratification, the matter may

be referred to the Co-Chairs of the National

Negotiating Committee or their designees for

resolution.

b. No RPCD shall be forced to work any day outside of

their regular scheduled workweek. RPCDs who

currently qualify for 9.5 rights shall not have their rights

affected due to the reclassification of 22.4s.

Section 2. Recognizing that the Employer currently only

utilizes five (5) day delivery operations in some locations, at

least forty-five (45) days advance written notice shall be

provided to the affected Local Union(s) prior to transitioning

to a six (6) day delivery operation following ratification.

ARTICLE 12. POLYGRAPH/TIMECLOCKS

No applicant for employment and no employee will be required

to take any form of a lie detector test as a condition of

employment.

Upon request, an employee or the Union may inspect the record

of an employee’s time recorded on the DIAD or other device for

previous days’ work. An employee will be permitted to examine

the operation record for the current pay period for the purpose of

ascertaining his/her their hours worked. If an employee has an

issue with his/her their hours worked for a particular day, the

Employer will provide the employee, upon request, with a print

out printout of his/her their hours worked.

The Employer shall not alter the information from the DIAD

board, or information recorded through the use of any other

technology, so as to diminish an employee’s compensable time,

without the employee’s knowledge. Further, the Employer shall

post for an employee’s review, a copy of the PTE edits for each

day. No supervisor shall use a DIAD, or any other information

recorded through the use of any other technology, under the name

of an hourly employee unless the employee is present. This

includes for the purpose of training and demonstration.

Employees will not be responsible for any work performed by

another employee using any electronic device under their name.

An employee’s hours worked and rate of pay shall be available

for review electronically by the affected employee on a Company

maintained website.

Upon request by an employee, steward or Local Union to a

Company supervisor or their designee, the Employer shall

provide copies of ODS messages. When such request is made on

the same day the transmission(s) were sent, the operating center

shall provide the printed copy of the transmission(s) that day.

When such request is made after the day the transmission(s) were

sent, but within twenty-five (25) days thereafter, the printed copy

of the transmission(s) shall be provided within five (5) working

days.

By January 1, 2026 the Employer shall implement an

employee accessible payroll system that provides access to

start and finish times, pay codes, pay amounts and scheduled

time off. This system will also provide the time, date and the

nature of any alterations made by any member of

management. The information in the system shall be updated

on, at least, a daily basis.

When requested by the Union, time clocks will be left in place for

employees to record their work hours for their own personal use.

ARTICLE 13. PASSENGERS

[No change]

7/26/2023

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ARTICLE 14. COMPENSATION CLAIMS

Section 1.

When an injury is reported the reference number will be given to

the employee and when requested, a copy of the injury report will

be furnished to the employee within two (2) working days of such

request. A copy of the injury report will also be furnished to the

Local Union if requested by a Local Union official.

The Employer agrees to cooperate and make a reasonable effort

to provide the disposition of employee on-the-job injury claims

within ten (10) business days. No employee will be disciplined or

threatened with discipline or retaliated against as a result of filing

an on-the-job injury report. The Employer or its designee shall

not visit an injured worker at his/her their home.

The Employer shall provide the Union Co-chair of the National

Safety and Health Committee with current summaries of the

essential functions of all positions covered by this Agreement.

The Union shall have the right to challenge any such summary

through the applicable grievance procedure. Any employee who

is adversely affected by any such summary shall have the right to

challenge such summary through the applicable grievance

procedure.

Any such decisions or settlements rendered through the grievance

procedure, including but not limited to, at arbitration, shall be

based solely upon, and applicable to, the facts present in that

individual case and shall have no precedential effect beyond that

case. This stipulation is limited to cases involving or referencing

essential job functions.

The Employer shall provide Worker’s Compensation protection

for all employees even though not required by state law or the

equivalent thereof if the injury arose out of or in the course of

employment.

An employee who is injured on the job, and is sent home, or to a

hospital, or who must obtain medical attention, shall receive pay

at the applicable hourly rate for the balance of his/her their

regular shift on that day. Upon receiving an employee’s timely

report of injury, the Employer shall not pressure an employee to

continue to work, nor shall the Employer interfere with an

employee seeking medical attention. When, because of such

pressure, an employee spends time in a clinic after his or her their

normal finish time, the time spent shall be the subject of a pay

claim through the grievance procedure.

An employee who has returned to regular duties after sustaining

a compensable injury, and who is required by the Worker’s

Compensation doctor to receive additional medical treatment

during the employee’s regularly scheduled working hours, shall

receive the employee’s regular hourly rate of pay for such time.

The Employer agrees to provide any employee injured locally

immediate transportation, at the time of injury, from the job to the

nearest appropriate medical facility and return to the job, or to the

employee’s home, if required. In such cases, no representative of

the Employer shall be permitted to accompany the injured worker

while he/she is they are receiving medical treatment and/or being

examined by the medical provider, without the employee’s

consent. In the event that any employee sustains an occupational

illness or injury while on a run away from the home terminal, the

Employer shall obtain medical treatment for the employee, if

necessary, and, thereafter, will provide transportation by bus,

train, plane or automobile to the employee’s home terminal, if

and when directed by a doctor.

An employee that has a change in his/her their medical duty

status shall report that change to the Employer.

In the event of a fatality, arising in the course of employment

while away from the home terminal, the Employer shall return

the deceased to the home of the deceased at the point of domicile.

Section 2. Temporary Alternate Work

[No change]

Section 3. Permanently Disabled Employees

[No change]

Section 3.1

[No change]

ARTICLE 15. MILITARY CLAUSE

Section 1. USERRA Rights

[No change]

Section 2. Vacation Restoration

Employees on USERRA-approved military leave shall continue

to accrue vacation to be used upon return as set forth below. To

be eligible for accrual, employees must be (i) employed by UPS

for at least one (1) year, (ii) be a member of the uniformed

services at time of callup, and (iii) be called into active duty (other

than for training) for a period of service exceeding thirty (30)

days pursuant to any provision of law because of a war or national

emergency declared by the President of the United States or

Congress. An eligible employee returning to work as per

USERRA shall be entitled to annual va-cation for the remainder

of that contractual vacation period based on the number of weeks

to which he/she is they are entitled for years of service and the

quarter in the current contractual vacation period in which the

employee returns from eligible military leave, as follows:

7/26/2023

- 10 -

No. Wks Q1 Q2 Q3 Q4

6 6 4 3 1

5 5 3 2 1

4 4 3 2 1

3 3 2 1 1

2 2 1 1 1

In no event shall the employee have less than one (1) week of

vacation available upon his/her their return.

For the next contractual vacation period, the employee shall be

credited with the vacation he they would have accrued while he

was they were on military leave. In no event shall the employee

have less than he is they are entitled to based on total years of

service under the applicable Supplement.

Any time off provided by a Supplement, Rider or Addendum

other than vacation (e.g. option weeks or sick days) similarly

shall continue to accrue while on approved military leave and

will be restored on a pro-rata basis in the same manner as

vacation for eligible employees, depending on the quarter in

which the employee returns to work. Any fractional day will

rounded up to the next whole number.

The treatment of unused vacation and the scheduling of the

vacation, as well as the treatment and scheduling of time off

other than vacation, shall be in accordance with the applicable

Supplemental Supplement, Rider or Addendum.

Section 3. Notification of Leave

[No change]

Section 4. Spousal Transfer Rights

[No change]

ARTICLE 16. LEAVE OF ABSENCE

Section 1.

[No change]

Section 2.

[No change]

Section 3. Loss of License

Section 3.1 Leave of Absence

[No change]

Section 3.2 Alternate Work (Other than Alcohol/Controlled

Substance)

[No change]

Section 3.3 Alternative Work (Alcohol/Controlled Substance)

When an employee, in any job classification requiring driving,

has lost his/her their license for driving under the influence of

alcohol or a controlled substance he/she they will be offered

available inside work of one (1) full-time or two (2) part-time

openings, not to exceed two (2) years provided that the employee

is assessed by a Substance Abuse Professional (SAP) and is

released to return to work by the SAP. The SAP shall establish

the terms upon which the employee may return to work. The

employee must also enter a rehabilitation program, if required by

the SAP, within one (1) month of the SAP’s assessment. The

employee shall be returned to driving once he/she they

successfully completes complete the rehabilitation program,

provided his/her their driving privileges have been restored. The

employee shall receive the appropriate rate of pay for the job

performed based on his/her their seniority. Coverage for benefits

shall continue for the length of the leave of absence or for the job

duration, up to two (2) years.

Any driver cited for Driving Under the Influence who does not

have his/her their license suspended, or who has limited driving

privileges, shall be assessed by a SAP within five (5) working

days of the citation. If the SAP determines the driver does not

require rehabilitation, then he/she they shall be allowed to return

to driving. Until the assessment is completed, the driver shall be

allowed to work at his their hourly wage and guarantee. If

rehabilitation is required, the above paragraph shall also be

applicable. The right to rehabilitation provided in Article 35,

Section 4.11 shall not be applicable to a driver who completes a

rehabilitation program under this paragraph, unless, as a result of

the DUI citation, the driver is convicted or loses his/her their

license for driving. If a citation later results in a non-

conviction, the SAP will determine whether the employee

needs to complete or immediately be released from the

rehabilitation and/or aftercare treatment program.

This Section does not apply to the employee that has lost his/her

their license for being disqualified for testing positive for

controlled substances.

Section 3.4 CDL Qualification

[No change]

Section 4. Maternity and Paternity Leave

It is understood that maternity leave for female employees shall

be granted with no loss of seniority for such period of time as her

their doctor shall determine that she is they are physically or

7/26/2023

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mentally unable to return to her their normal duties and maternity

leave must comply with applicable state and federal laws.

The Employer shall provide a place, other than a bathroom,

that is shielded from view and free from intrusion from

coworkers and the public, which may be used by an employee

to express breast milk. A reasonable break time for an

employee to express breast milk for such employee’s nursing

child shall be considered hours worked if the employee is not

completely relieved from duty during the entirety of such

break.

A light duty request, certified in writing by a physician, shall be

granted in compliance with state or federal laws, if applicable.

Light duty requests shall also be made through the Employer’s

“Light Duty for Pregnant Workers” program.

Paternity leave shall be granted in accordance with Section 6 of

this Article with the exception of employees not able to meet the

qualifications set out in Section 6, who shall be granted leave not

to ex-ceed one (1) week.

Notwithstanding any provision to the contrary in any

Supplement, Rider, or Addenda, an employee shall be allowed to

designate in any vacation year paid time off up to twenty (20)

days, to be used in the next vacation year, in accordance with this

paragraph. Any paid time off that is provided on a weekly basis

can only be banked in weekly increments. The accrued paid time

off may be used in the next vacation year to cover any period of

time that (1) the employee is determined to be unable to perform

her their job due to pregnancy (for the father, time off is

requested due to the birth) and (2) is not covered by the FMLA,

existing disability plans or other paid time off. If the accrued time

off is not used in that year, it will be paid to the employee within

two (2) weeks of the request. If the vacation is not used as part of

the leave, and it would have originally been taken in that vacation

year, the employee shall also have the option of rescheduling the

unused vacation as time off in accordance with local practice.

Section 5. Rehabilitation Program—Leave of Absence

[No change]

Section 6. Family and Medical Leave Act (FMLA)

All employees who have worked for the Company for a minimum

of twelve (12) months and worked at least 1250 hours during the

past twelve (12) months are eligible for unpaid leave as set forth

in the Family and Medical Leave Act of 1993.

Additionally, any employee not covered above, that has worked

for the Company for a minimum of thirty-six (36) months and

accrued at least 625 paid hours during the past twelve (12) months

is eligible for unpaid leave as set forth below, except that the

amount of leave allowed will be computed at one half (1/2) of the

time provided by the FMLA.

Eligible employees are entitled up to a total of 12/6 weeks of

unpaid leave during any twelve (12) month period for the

following reasons:

1. Birth of a child;

2. Adoption or placement for foster care;

3. To care for a spouse, child, or parent of the employee due to a

serious health condition;

4. A serious health condition of the employee.

The employee’s seniority rights shall continue as if the employee

had not taken leave under this section, and the Employer will

maintain health insurance coverage during the period of the leave.

The Employer may require the employee to substitute accrued

paid vacation or other paid leave for part of the 12/6 week leave

period. Employees shall be allowed to retain up to two (2)

weeks of accrued paid vacation that will not be substituted for

part of the 12/6 week leave period.

The employee is required to provide the Employer with at least

thirty (30) days advance notice before FMLA leave begins if the

need for leave is foreseeable. If the leave is not foreseeable, the

employee is required to give notice as soon as practicable. The

Employer has the right to require medical certification of a need

for leave under this Act. In addition, the Employer has the right

to require a second (2nd) opinion at the Employer’s expense.

The provisions of this section are in response to the Federal Act

and shall not supersede any state or local law, which provides for

greater employee rights.

Section 7. Disability

[No change]

ARTICLE 17. PAID FOR TIME

All employees covered by this Agreement shall be paid for all

time spent in service of the Employer. Rates of pay provided for

by this Agreement shall be minimums. Time shall be computed

from the time that the employee is ordered to report for work and

registers in and until the employee is effectively released from

duty. All time lost due to delays as a result of overloads or

certificate violations involving federal, state or city regulations,

which occur through no fault of the driver, shall be paid for by

the Employer.

The Employer will not allow employees to work prior to their

start time without appropriate compensation.

7/26/2023

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Wages for properly selected vacations, in all instances, will be

paid to the employees no later than the workday prior to their

vacation. If the employee does not receive his/her their vacation

check, the Employer will make all reasonable efforts to provide

the check the following day including delivery by Saturday or

Next Day Air. If the employee requests to see his their vacation

check on the Monday as permitted below and the Employer fails

to make the vacation payment available by Saturday following

the employee’s regular scheduled pay day, the employee shall be

paid an additional amount equal to one-half (1/2) of his or her

their daily guarantee at his or her their regular hourly rate of pay

for every subsequent pay period until the shortage is corrected.

Other shortages involving more than fifty ($50.00) dollars for

full-time employees, and twenty-five ($25.00) dollars for part-

time employees, will be corrected and the payment will be made

available to the employee at his/her their reporting location on

his/her their second scheduled workday after reporting the

shortage. If the Employer fails to make the payment available on

the a full-time employee’s second scheduled workday and the

shortage was the result of the Employer’s error, the full-time

employee will be paid an additional amount equal to one-half

(1/2) of his/her their daily guarantee at his/her their regular

hourly rate for every full pay period in which the shortage is not

paid after the second (2nd) scheduled work day, until corrected.

If the payroll error for a full-time employee is not corrected

within two (2) pay periods, the payroll error penalty

described above shall be increased to the full-time employee’s

full daily guarantee.

If the payroll error involves a part-time employee, the penalty

paid for shortages described above which are not paid on the

second (2

) scheduled work day shall be equal to four (4)

hours times the part-time employee’s regular hourly rate.

The four (4) hour payroll error penalty for a part-time

employee shall continue to be paid for every full pay period

in which the shortage is not corrected.

Within thirty (30) days of the implementation of the

Employer’s new payroll processing system, but no later than

January 1, 2026, the following shall apply: The payroll error

penalty described above for full-time employees shall be

increased to the employee’s full daily guarantee for every full

pay period in which the shortage is not paid after the second

) scheduled work day, until corrected. For part-time

employees, the payroll error penalty shall remain at four (4)

hours pay. If the payroll error is not corrected for a part-time

employee within two (2) pay periods, the penalty shall be

increased to five (5) hours.

Errors of less than fifty ($50.00) dollars for full-time employees

or twenty-five ($25.00) dollars for part-time employees and

overages will be corrected in the following weekly paycheck. The

Union and Employer shall have the authority at any level of the

grievance procedure to award a penalty up to the amount

specified in the prior paragraph for any violation of the provision.

If an employee works in different classifications during a shift

that are paid at different rates, the different hours and rates shall

be available for review electronically by an employee on a

Company maintained website. Any grievance payments included

on a paycheck will also be available for review by affected

employees electronically with the applicable identifying

grievance number on a website maintained by the Employer.

Nothing in this paragraph is intended to eliminate any local

practices regarding availability of data regarding grievance

settlements.

Any grievance settlement not paid within ten (10) working days

of the settlement shall entitle the grievant(s) to a penalty payment

as outlined above. The ten (10) working day period shall begin to

run when the management Labor Department representative

agrees to the settlement, or is notified by the Union or

management team of the settlement. The Employer shall pay a

maximum of one penalty payment for a multi-grievant grievance,

which shall be subject to the additional penalties set forth above

for untimely payment, until corrected.

When an employee notifies the Employer in writing of any

ongoing overpayment, the employee’s increasing liability will

cease five (5) working days after the date of the written

notification. The notification shall be provided to the employee’s

immediate supervisor or manager.

All employees must receive their vacation pay in a separate check

before taking vacation. Vacation checks for an employee, who is

taking a properly scheduled vacation in accordance with the

applicable Supplement, Rider or Addendum, will be at the

operating center on Monday of the week prior to the employee’s

vacation week(s). This is to ensure that the employee receives

his/her their pay prior to taking his/her their vacation. The

employee will be shown his/ her their check upon request, but

will not receive the check until the regular scheduled pay day.

All green checks will be taxed at the employee’s regular

withholding tax rate.

Paycheck stubs will show the year-to-date vacation, sick and

personal leave balances.

ARTICLE 18. SAFETY AND HEALTH EQUIPMENT,

ACCIDENTS AND REPORTS

Preamble

[No change]

Section 1. Employees' Rights—Equipment, Vehicles and

Conditions

7/26/2023

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[No change]

Section 2. Out of Service Equipment and Vehicle Reports

[No change]

Section 3. Accidents and Reports

[No change]

Section 4. Seats

[No change]

Section 5. Sun Visors

[No change]

Section 6. Building Heat

[No change]

Section 6.1 Indoor Air Pollution

[No change]

Section 7. Trailer Configuration

The Employer will make every effort to have the heaviest loaded

trailer as the lead trailer. If the percent of load in one (1) trailer

exceeds the other by twenty-five percent (25%) or more, such

trailer shall be the lead trailer, except when state or federal

regulations require otherwise. However, if the driver feels the

percentage exceeds twenty-five percent (25%) in the rear trailer

or the unit does not handle properly, he/she they may contact

management and will be authorized to switch the unit and be paid

for such time. If there is a dispute over the load(s) the

Company will remove the seal(s) to confirm the percentage(s)

while on UPS property. Air Container loads are excluded.

Section 8. Radios

[No change]

Section 8.1 Distracted Drivers

[No change]

Section 8.2 Non-Driving Employees

The use of handheld devices by non-driving employees will be

allowed with the approval of the Employer. in accordance with

the facility’s current security practice.

Section 9. Tires

[No change]

Section 10. Shocks

[No change]

Section 11. Mirrors

All vehicles shall be equipped with regular mirrors and a convex

mirror.

New feeder road equipment shall be equipped with heated

mirrors. Any feeder road equipment not presently equipped shall

be equipped with heated minors mirrors when the mirrors

require replacement.

The Employer shall continue to install and maintain the agreed to

camera monitor backing system devices in all package cars for

the furtherance of safety while backing. If technological advances

would allow a more effective system or enhancements in the

current system, the Employer shall meet with the Union to discuss

and review any potential changes. Where available, the

Employer will lease or rent vehicles with camera monitor

backing system devices or a cross view back up mirror.

Upon request, cab-over tractors with a lower window on the right

side door will be equipped with a convex mirror on the door.

Section 12. Dollies

[No change]

Section 13. Exhaust System

All new diesel tractors added to the fleet after January 1, 1994,

shall be equipped with a vertical exhaust stack. Recognizing the

advances made in the reduction of diesel emissions, the chairmen

of the National UPS/IBT Safety and Health Committee shall meet

to discuss a pilot program involving alternative tractor exhaust

systems. Recognizing the advances made in the reduction of

diesel emissions, the Company may introduce alternate

exhaust systems in all new tractors acquired after January 1,

2024. Package car exhaust systems, when replaced, shall exit to

the side of the vehicle.

Section 14. Package Cars And Other Vehicles

All new package cars, P-32 and larger, added to the fleet shall be

equipped with package compartment venting. Upon ratification

of this Agreement, the Climatic Conditions Committee shall meet

to evaluate and, if needed, recommend appropriate method(s) for

venting the package compartments. The installation of cab

com-partment fans will be determined by individual districts. P-

7/26/2023

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200 through P-470 vans purchased after January 1, 2024 shall

be equipped with in-cab air conditioning systems. In addition,

pushbacks and fuel trucks purchased after January 1, 2024

shall be equipped with in-cab air conditioning. All new

package cars, P-500 and larger, shifting units, and twenty-

four (24) foot box vans purchased after January 1, 2024 shall

be equipped with in-cab air conditioning systems. All air

conditioning systems will be repaired as needed. A single fan

will be installed in the cab of every existing package car, P-

500 and larger, no later than thirty (30) days following

ratification of this Agreement. A second fan will be installed

in the cab of every existing package car, P-500 to P-1200, by

no later than June 1, 2024.

In order to expedite the replacement of existing vehicles with

new vehicles equipped with air conditioning, the Employer

shall make reasonable efforts to prioritize the allocation of

package cars purchased after January 1, 2024 to Zone 1 until

such time as all package cars in Zone 1 are equipped with air

conditioning. The Company then shall use reasonable efforts

to prioritize Zone 2 and then Zone 3. The allocation of

package cars may take into account factors that include, but

are not limited to, state emissions and efficiency standards,

existing vehicle retirement schedules, and business growth

levels. The Employer may, if it so desires, redistribute

displaced vehicles for use in other Zones until such time as

they are replaced by new vehicles equipped with air

conditioning.

All new non-electric package cars and vans that are model

year 2023 and later shall be delivered with factory installed

exhaust heat shields. P-500 to P-1200 package cars model

year 2023 and later also shall be equipped with air induction

vents for the package compartment. With eighteen (18)

months following ratification of this Agreement, all non-

electric package cars P-500 and larger shall be retrofitted

with exhaust heat shields. Within eighteen (18) months

following ratification of this Agreement, package cars P-500

to P-1200 shall be retrofitted with an air induction vent scoop.

Within ten (10) days of ratification of this Agreement, an

IBT/UPS Package Car Heat Committee will be created,

consisting of three (3) individuals appointed by the Union and

three (3) individuals appointed by the Employer, and shall

meet to begin discussing appropriate methods for venting and

insulating the package car cargo compartments. The

Committee also shall identify potential venting and insulation

solutions for evaluation and field testing, including, but not

limited to, the installation of an insulation product on the

floor of package car cargo compartments. By October 1,

2024, the Committee shall issue its determination as to an

additional appropriate venting and/or insulation solution(s)

to reduce the temperature in package car cargo

compartments. Should the Committee be unable to agree by

that date, the matter shall immediately be referred to the

Union and Employer Chairs of the National Negotiating

Committee for resolution. If they are unable to reach

agreement, the matter shall be resolved pursuant to Article 8,

Section 6.

All requests for door handle shields coverings will be complied

with in a timely manner.

When requested, package cars larger than a P-32 will have grab

handles located on the curb side of the package car and mounted

on the inside, and will be equipped with mounting brackets to

secure hand carts. The Employer will make every effort to require

all new package car designs to have lower cab entry steps. All

new package cars shall be equipped with step tread plates on both

the driver and passenger sides. All package cars added to the

fleet prior to January 1, 2009, shall have traction tape

installed on the floor upon request.

Gear shift extensions shall be addressed on a case-by-case basis.

All new package cars placed into service shall be equipped with

power steering.

The Employer will replace at least 28,000 package cars and vans

during the life of this Agreement. at a rate no less than the

percent replaced over the duration of the prior contract that

expired July 31, 2018. The Union will be notified if the Employer

cannot meet this schedule because of volume downturns.

A package car will be equipped with a hand cart at the driver’s

request.

Section 14.1 Driver Safety and Security

[No change]

Section 15. Heaters and Defrosters

[No change]

Section 16. Noise Abatement

All new package cars and feeders, will be ordered to comply with

Federal Motor Carrier Safety Regulations (FMCSR), regarding in

cab noise levels.

Occupational noise assessment shall be conducted to evaluate

employee noise exposure in all new or retrofitted automated

facilities.

Section 17. Vehicle Integrity

[No change]

Section 18. Vehicle and Personal Safety Equipment

7/26/2023

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All automotive vehicles shall be equipped with a manufacturer

certified seat belt restraint system. Jump seats shall be equipped

with a safety belt. Three-point shoulder harness safety belts shall

be provided on the driver’s side of all new vehicles, and on the

jump seat for all new P-32 through P-120 vehicles and all new

24-foot vans. It shall be required that the driver’s seat belt and the

jump seat safety belt be worn at all times when the vehicle is

moving. Feeder tractor door locks, where provided as original

equipment, shall be maintained in working order.

Golf cart usage will comply with applicable federal, state and

local regulations.

Within one-hundred and twenty (120) days of ratification of

this Agreement, the IBT/UPS National Safety and Health

Committee shall meet to create an educational program and

develop a solution for preventing dog bites.

Section 19. Qualification on Equipment

[No change]

Section 19.1. Clerical Areas

[No change]

Section 20. National UPS/IBT Safety and Health Committee

Section 20.1 National UPS/IBT Safety and Health

Committee—Safety, Health and Equipment Issues

[No change]

Section 20.2—National UPS/IBT Safety and Health

Grievance Committee

[No change]

Section 20.3 Climatic Conditions Committee

[No change]

Section 20.4 Safety and Health Committees

[No change]

Section 21. Hazardous Materials Handling Program

[No change]

Section 22. Incompatible Package Handling

The Employer agrees that all irregular or incompatible packages

such as bars, buckets, exposed metal parts, tire rims, etc., shall be

given special handling in accordance with UPS handling methods

and local conditions. Under no circumstances shall irregular,

incompatible, or over 70lb packages be comingled with

regular packages on a moving belt or slide.

Section 23. Union Liability

[No change]

Section 24. Egress

The Employer and Union shall monitor conditions in and

around all work areas including but not limited to sort aisles and

areas where vehicles are loaded or unloaded to ensure that

temporary impediments created by placed or fallen packages are

minimized. The Employer shall not permit packages, materials,

or equipment to be placed permanently or temporarily within the

28in wide exit access in front of an exit door or at the top or

bottom of a stairway that is part of an exit access point.

Section 25. Building Security

[No change]

Section 26. Recording Devices

[No change]

Section 27. Heat-related Injury and Illness Prevention

The employer shall establish and implement a heat illness

prevention plan. The plan shall be made available for

viewing by employees and the Union. Employees shall be

trained on the contents of the Employer’s heat illness

prevention plan.

The Employer shall monitor environmental conditions as

close to the individual worksite as possible, including a daily

check of the US National Weather Service or use of the

OSHA.gov or similar source of temperature data.

The Employer shall:

1. Provide each building with an adequate amount of

potable drinking water sufficient for the number of

employees working on each shift.

2. Provide, on a one-time basis, to each regular

package car driver a one-gallon durable insulated

container, who has not received an insulated water

jug from the Company.

3. Provide each building with an adequate number of

ice machines sufficient for the number of employees

working on each shift, which are maintained in

good working order, clean, and in sanitary

condition or have ice delivered and available.

4. Train employees to report heat-related symptoms

and request emergency assistance.

7/26/2023

- 16 -

5. Designate one or more employees in each building

per shift, who are dedicated to heat-related injury

and illness prevention and who are authorized to

call for emergency medical services. Other

employees shall be able to call for emergency

services when no designated employee is available.

6. Provide a graduated workload to new Employees

for purposes of acclimatization for the first five (5)

to seven (7) working days and monitor for signs and

symptoms of heat injury and illness.

7. Install additional (minimum of 18,000) fans to

improve air circulation throughout the buildings

during the 2023-2028 CBA.

8. Install additional (minimum of 2,500) water

fountains throughout the buildings during the 2023-

2028 CBA.

9. Allow overhead doors to be opened, where security

and weather conditions allow, to induce cross

ventilation.

10. Monitor employees for heat-related illness and

injury.

11. Communicate heat related injury and illness events

during the pre-shift communication (PCM)

meetings to review prevention steps.

12. Identify areas that can be used for shade or cool

zones.

13. Employees shall be allowed to follow best practices

as outlined in the employer’s heat stress training.

ARTICLE 19. POSTING

[No change]

ARTICLE 20. EXAMINATION AND IDENTIFICATION

FEES

Section 1. Required Examination

[No change]

Section 2. Return to Work Examination

[No change]

Section 3. Third Doctor Procedure

[No change]

Section 4. Disqualified Driver—Alternative Work

[No change]

Section 5. Identification

Should the Employer find it necessary to require employees to

carry or record full personal identification, such requirements

shall be complied with by the employees. The cost of such

personal identification shall be borne by the Employer.

Employees, other than applicants, shall be paid up to two (2)

hours at their current straight time hourly rate of pay for

their time in the process of obtaining an airport badge. This

includes obtaining the initial badge and any recertification

badge. Provisions in Supplements, Riders or Addenda that

are superior shall prevail.

All management personnel shall wear an ID badge or nametag

identifying them as supervision while on duty and shall provide

their name upon request.

ARTICLE 21. UNION ACTIVITY

[No change]

ARTICLE 22. FULL-TIME COMBINATION AND PART-

TIME EMPLOYEES

Section 1.

[No change]

Section 2.

[No change]

Section 3.

The parties agree that providing part-time employees the

opportunity to become full-time employees is a priority of this

Agreement. Accordingly, the Employer commits that during the

life of this Agreement, it will offer part-time employees the

opportunity to fill at least twenty-two thousand five hundred

(22,500) (20,000) permanent full-time job openings throughout

its operations covered by this Agreement.

This commitment shall include the obligation to create at least

seventy-five hundred (7500) five thousand (5000) new full-time

jobs from existing part-time jobs during the last three four years

of this Agreement throughout its operations covered by this

Agreement; one thousand (1000) in the third year of the

contract; three thousand (3000) in the fourth year; and thirty-

five hundred (3500) in the fifth year of this Agreement. five

hundred (500) in the second contract year and fifteen hundred

(1500) in each of the last three years of this Agreement. In

creating these jobs, the Company shall be allowed up to one and

one half (1.5) hour gap between jobs in a workday

notwithstanding any provision in any Supplement, Rider or

Addendum that is more limiting. Any disagreements will be

referred to the Chairs of the National Negotiating Committee for

resolution.

7/26/2023

- 17 -

The number of full-time jobs created under Article 22, Section 3

of the 1997-2002, the 2002-2008, and the 2013-2018 and the

2018-2023 Agreements shall not be reduced. Within sixty (60)

days of the ratification of this Agreement the Employer shall

provide the International Teamsters Union a report detailing and

identifying the full-time jobs which will need to be maintained

pursuant to this paragraph.

Section 4.

Section 4. (a)

Part-time employees shall be given the opportunity to fill full-

time jobs before hiring from the outside on a six for-one basis (six

(6) part-time to every one (1) outside hire).

The following will be incorporated into the job selection

procedures in the applicable Supplement, Rider or Addendum:

The Employer will fill all vacancies and permanent new jobs for

part-time employees from the part-time selection list in all

months except November and December.

Part-time employees with six (6) months or more seniority shall

have the right to place their name on the list of employees waiting

to be moved to a preferred job within their building. Such

preferred jobs shall include, but not be limited to: Preload, Sorter,

Clerical, Irregular Train, Designated Responder, Carwasher,

Loader and Unloader. Employees do not have the right to select

any specific unit, load or workstation unless a prior past practice

has been established.

Part-time employees with less than six (6) months seniority shall

have the right to bid a preferred job prior to the Employer hiring

from off-the-street.

A maximum of twenty-five percent (25%) of the employees on a

shift shall be allowed to change shifts in any one (1) calendar

year. The employee obtaining the new position shall remain on

that shift for at least six (6) months.

Section 4. (b). Full-Time Combination Drivers

All existing regular full-time package car drivers (RPCD) shall

be considered RPCD drivers for the purpose of this Section. The

Union and Company commit to protect existing RPCDs from

being scheduled or forced to perform weekend delivery work and

increasing the number of full-time opportunities for part-time

employees. To achieve these objectives, the Company may create

full-time 22.4 combination driving jobs. Such jobs may include

inside work. In the event the Company utilizes this classification,

the following shall apply only to those buildings that include

Saturday or Sunday delivery.

1. The number of RPCDs working a Monday through Friday

schedule in each building, shall be verified and agreed to by each

Local Union and the Company Labor Representative, as of

August 1, 2018 and shall be protected jobs. “Protected jobs” shall

include RPCDs that will continue to be replaced by employees

covered under Article 41, Section 2. In the event the Company

does not begin Saturday or Sunday delivery at a building until

after August 1, 2018, the number of RPCD jobs in existence at

the time of implementation shall be included as “protected jobs.”

A copy of the verification shall be given to the Package Division

and to Corporate Labor. Any disputes shall be determined no later

than the October 2018 National Grievance Panel by the Director

of the IBT Package Division and the President of Corporate

Labor or their designee(s).

RPCDs working a Monday through Friday schedule shall be

guaranteed five (5) consecutive days of eight (8) consecutive

hours per report and forty (40) straight time hours of straight time

pay each week, if reporting each day as scheduled, as long as

work is available.

Those RPCDs currently working Tuesday through Saturday shall

be red circled by name and shall continue to be covered under

Article 41, Section 2.

2. It is the commitment of the parties that RPCDs work a Monday

through Friday schedule. To that end the parties agree that all

RPCDs currently working a Tuesday through Saturday schedule

will transition to a Monday through Friday schedule as soon as

practicable, within eighteen (18) months of ratification. The

Company shall have an additional six (6) months for drivers hired

directly into a Tuesday through Saturday schedule.

3. The number of protected RPCD jobs in each building as

outlined in this Article 22.4 (1) above, shall be guaranteed from

replacement by 22.4 combination drivers or from any part-time

drivers as allowed by any Supplement, Rider or Addendum. In

the event a protected job moves to another building or jurisdiction

as a result of a change of operations or otherwise, the protected

status shall follow the job. The number of 22.4 combination

drivers shall not exceed twenty-five (25%) of the total number of

RPCDs in the building. If the amount of regular Saturday or

Sunday volume in a building consistently requires RPCD drivers

to work Saturday or Sunday because of the twenty-five percent

(25%) limit, the Package Division Director and UPS President of

Labor Relations shall be allowed to adjust the limit based on

demonstrated service need.

4. No RPCD shall be laid off or displaced from the classification

while 22.4 combination drivers are working in the building.

5. All 22.4 combination drivers shall be guaranteed eight (8)

consecutive hours of straight time pay per day, if reporting as

scheduled. All 22.4 combination drivers shall work a five (5)

consecutive day schedule of Tuesday through Saturday or

Wednesday through Sunday. This paragraph shall supersede any

Supplement, Rider, or Addendum on the same subject.

7/26/2023

- 18 -

6. When the new job includes inside work, the Company shall be

entitled to establish up to a one-and-one-half hour (1.5) gap, to

include the meal period, between jobs in a workday. All other

working conditions not set forth herein, including, but not limited

to, the work available for combination with driving, bidding

procedures, holidays, vacations, etc. shall be set forth in the

Supplements, Riders and Addenda.

7. 22.4 Combination drivers shall be paid in accordance with

Article 41.4.

8. In the event the Company needs additional staffing to cover

Saturday or Sunday ground deliveries, such work shall first be

offered to RPCDs as set forth above, then to Article 22.4

combination drivers on their scheduled off day, then to part-time

utility/cover/casual employees as permitted in the Supplement,

Rider or Addendum. If sufficient volunteers are not obtained, the

Company may force in reverse order in accordance with the

applicable Supplement, Rider or Addendum.

9. No 22.4 combination driver shall be required to complete more

than one (1) qualification period or progression. Any 22.4

combination driver in progression who successfully bids any

other full-time position shall slot in at the appropriate rate for the

classification.

10. In the event a protected RPCD position becomes available, it

shall be filled in accordance with the Supplement, Rider or

Addendum, provided, however that no RPCD position shall be

filled by an outside hire unless the job remains unfilled after

exhaustion of the applicable bidding procedure.

11. Newly created 22.4 combination driver positions shall count

toward the newly created 22.3 jobs required by this Agreement.

12. Article 37, Section 1 (b) and (c) shall not apply to 22.4

combination drivers. In those buildings in which the Company

creates 22.4 combination jobs to cover weekend deliveries,

Article 37 Section 1 (c) 9.5 protections shall apply to all seniority

RPCDs regardless of the route they hold or number of years of

seniority.

Sections 5. Wages

(a) Part time Employees

(1) All part-time employees who have attained seniority as of

August 1, 202318 will receive the following general wage

increases for each contract year. but will in no case receive less

than the hourly start rate specified on August 1

2018-2022 as set

forth in b. below. The total wage increase for each year will be as

follows:

2018 seventy cents ($0.70)

2019 seventy-five ($0.75)

2020 eighty cents ($0.80)

2021 ninety cents ($.90)

2022 one dollar ($1.00)

2023 two dollars and seventy-five ($2.75)

2024 seventy-five cents ($0.75)

2025 seventy-five cents ($0.75)

2026 one dollar ($1.00)

2027 two dollars and twenty-five cents ($2.25)

(2) Any seniority part-time employee below twenty-one

dollars ($21.00) after the application of the general wage

increase shall be raised to the minimum of twenty-one

dollars ($21.00) and shall thereafter be eligible for the above

general wage increases and the one-time longevity increase

below.

(3) After application of the GWI and the minimum twenty-

one dollar ($21.00) rate, the following one-time longevity

increases shall become a part of the applicable employee’s

base wage rate, based on their original hire date:

Five (5) up to ten (10) years of service (YOS)-fifty cents

($0.50) per hour

Ten (10) up to fifteen (15) YOS–one dollar ($1.00) per

hour

Over fifteen (15) YOS-one dollar and fifty cents ($1.50)

per hour.

The applicable longevity increase will be applied for each

eligible employee on August 1, 2023.

For example, if an employee’s date of hire is August 1, 2002,

effective August 1, 2023 the employee will receive the two

dollar and seventy-five cent ($2.75) general wage increase and

the one dollar and fifty cent ($1.50) per hour longevity wage

increase based on the accrued twenty-two (22) years of

service.

(b) Newly hired part-time employees

In recognition of the fact that all of the Company’s part-time jobs

require skills and to eliminate the two (2) tier progression existing

in prior contracts, the parties have agreed to establish one uniform

hourly rate for part-time employees who would have been subject

to a progression. As such, aAll part-time employees, who are

hired or reach seniority after August 1, 202318 will be paid

according to the following progression wage schedules:

August 1, 2018 $13.00

August 1, 2019 $14.00

August 1, 2020 $14.50

August 1, 2021 $15.00

August 1, 2022 $15.50

Start $21.00

Twelve (12) months $21.50

Twenty-four (24) months $22.00

7/26/2023

- 19 -

Thirty-six (36) months $22.50

Forty-eight (48) months $23.00

The start rate for part-time employees hired after August 1,

2027 shall be increased to twenty-three dollars ($23.00).

Employees already in progression shall be raised to twenty-

three dollars ($23.00) on August 1, 2027.

be a minimum.

(d) All part-time employees governed by this Article shall be

provided a minimum daily three and one-half (3-1/2) hour

guarantee.

(e) Seniority part-time employees who are receiving an hourly

rate higher than set forth above in Section (b), as a result of a

Market Rate Adjustment, shall not have their hourly rate reduced

due to the implementation of this Article.

Section 6. Part-Time Employee Transfer

Part-time employees who wish to transfer to another location for

educational purposes may submit a written request to the

Employer. In addition, part-time employees who wish to

transfer to another location for non-educational purposes

may submit a written request to the Employer provided the

facilities in question are more than fifty (50) miles apart. If

approved Tthe transfer shall be allowed subject to the following

conditions:

A. A part-time opening exists at the desired location.

B. Employees must have attained seniority and been employed

by the Employer for at least one (1) year.

C. Job Classification Seniority shall be end-tailed.

D. Company seniority shall be retained for the purpose of number

of weeks of vacation, and number of holidays in accordance with

the applicable Supplement at the new location.

E. Any expenses, including moving expenses associated with an

approved transfer, shall be the responsibility of the employee.

F. It is the Employee’s responsibility to verify all benefits

including, but not limited to, medical, dental, vision, retiree’s

medical coverages and pensions at the requested transfer

location.

G. The Employer shall be required to notify the Local Union

that has jurisdiction over the requested transfer location that

the employee has been transferred to that location.

Section 7. Benefit Entitlements

[No change]

Section 8. Part-Time UPS Cartage Services, Inc. (CSI)

Employees

[No change]

ARTICLE 23. SEPARATION OF EMPLOYMENT

[No change]

ARTICLE 24. INSPECTION PRIVILEGES

[No change]

ARTICLE 25. SEPARABILITY AND SAVINGS

[No change]

ARTICLE 26. COMPETITION

Section 1.

The Union recognizes that the Employer is in direct competition

with the United States Postal Service and other firms engaging in

the distribution of express letter, parcel express, parcel delivery,

and freight, both air and surface. In order to meet that competition

and thereby protect and, if possible, increase the number of

bargaining unit jobs, it is agreed that any provisions in this

Agreement to the contrary notwithstanding, the Employer:

(a) may use substitute means of transportation (such as airplane,

helicopter, ship or T.O.F.C.) in its operations; provided, however,

that no feeder driver with more than three (3) years of seniority

in the feeder driver classification will be laid off or displaced

from a feeder classification as a result of a run being placed on

the rail. However, the Employer shall not be required to remove

loads from the rail to provide work for employees whose ground

loads were eliminated or temporarily discontinued. Any claimed

abuse of this Section by any of the Local Unions shall be subject

to immediate review by the National Grievance Committee.

Merchandise that has been tendered by United Parcel Service to

the railroad and moved by T.O.F.C. will not subsequently be

moved by the railroad, on the ground, to its final destination. Any

exception to the above language will be in cases of an emergency

or cases where the railroad must ground the merchandise early to

meet the company’s service commitment. In these cases, every

effort will be made to use UPS employees. The destination Local

Union will be notified if UPS employees cannot be used.

In order to expand the work opportunities for members of the

bargaining unit, the Employer will consider removing additional

loads from the railroad or the other substitute means of

transportation specified in this Article. When the Employer

7/26/2023

- 20 -

removes loads on other than a temporary basis, it shall notify the

Union of the number of new runs to be created as a result of

moving such loads on the ground. After ratification of this

agreement, the Company may bring service enhancement

projects to the Premium Services Committee for review and

approval. The Company may not implement any proposed

enhancements without the approval of the Premium Services

Committee. Agreement on plans shall not be unreasonably

withheld.

Temporary shall be limited to one (1) year six (6) months unless

there are circumstances beyond the Company’s control. The one

(1) year six (6) month period will not be exceeded unless the UPS

President of Labor Relations and Package Division Director

mutually agree. Agreement will not be unreasonably withheld.

The Employer and the Union shall agree on the most expeditious

method to obtain additional personnel and/or equipment, if

necessary, for the new runs to be operated by bargaining unit

members. If the equipment or employees are not available, the

Employer may use subcontractors for a reasonable start-up

period, not to exceed thirty (30) days. The subcontracting can

exceed thirty (30) days with the Union’s agreement if there are

problems obtaining additional personnel or equipment.

Agreement under this paragraph will not be unreasonably denied

by the Union. All feeder positions created as a result of returning

loads to the ground shall be counted toward the Employer’s

obligation to create full-time jobs under Article 22.3 of this

Agreement.

Bargaining unit employees will move scheduled T.O.F.C. loads

from the rail yards to UPS locations except during peak season.

During peak season, the Employer will make every reasonable

effort, in accordance with the appropriate Supplement, Rider or

Addendum, to use current UPS employees and hire a sufficient

number of employees to handle peak volume. After doing so, the

Employer may use alternate means of transporting packages

during peak season and will utilize union carriers whenever

possible. Plans to utilize outside carriers will be reviewed and

agreed with the Local Union. Such agreement will not be

unreasonably withheld.

No seniority feeder driver will be removed from his their bid run

at Peak and have that same route covered by an outside trucking

carrier. Rescheduled routes which may be covered by an outside

carrier will only occur if necessary to protect service.

UPS shall provide its plan to the affected Local Union by October

15th of each year. This shall not preclude UPS from making

subsequent alterations to the plan which shall also be reviewed

with the Union.

The Company will establish designated areas year-round for

outside carriers to drop-off and pick-up their designated

loads and shall review those areas with the Local Union.

Outside carriers shall only remain on property in the

designated areas for a reasonable amount of time, not to

exceed one (1) hour after their arrival time. From the Monday

prior to Thanksgiving until December 30

, outside carriers

shall not exceed four (4) hours on property. If a contractor

exceeds the timelines, they must leave the UPS property. All

outside carriers shall adhere to UPS safety regulations and

local yard rules. Any violations of these regulations and rules

will be addressed immediately by management. This

language will not supersede any superior benefit or

agreement in any Supplement, Rider or Addendum.

No package car driver shall be forced to use his or her their

personal vehicle to deliver packages.

(b) may drop loaded or empty trailers at locations designated by

it, its customers or consignees for customer or consignee loading

or unloading. It is understood that customers and consignees will

not move trailers for loading and/or unloading other than on their

premises. It is further understood that dropping and picking up

these trailers shall be done by members of the bargaining unit.

locations will be done by UPS bargaining unit employees.

(d) The Employer may not subcontract work within a local

union’s feeder jurisdiction for the purpose of avoiding

overtime. The Employer may not subcontract work in the

feeder classification if any employee on the applicable feeder

board who is qualified to perform such work is available to

cover the work, is displaced from the classification, or is on

layoff.

(e) The Employer may transition to a seven (7) day delivery

operation at locations that currently only utilize five (5) or six

(6) day operations. The Employer agrees that prior to any

transition to a seven (7) day operation, it shall notify the

Package Division and the affected Local Union(s) in writing

with the specific details and information then available and

then meet jointly with them to inform them of the proposed

change and to resolve questions raised in connection with the

effects of the proposed change. During the joint meeting, the

Employer and the Union shall reduce to writing all agreed

upon issues and both parties shall sign the written document

in acknowledgment of such agreement. The parties shall also

reduce to writing all unresolved issues, if any. This meeting

shall be completed where practical at least forty-five (45) days

prior to the implementation of the seven (7) day operation.

The seven (7) day operation may not be implemented until

the forty five (45) days’ notice is provided and the meeting is

completed. The Package Division and the affected Local

Union(s) shall not unreasonably delay the scheduling or

completion of the requested meeting. Any unresolved issues

which have been reduced to writing, will be resolved

pursuant to Article 8.

7/26/2023

- 21 -

(f) Notwithstanding any Supplement, Rider or Addendum,

the provisions in this Section 1(f) shall apply to Peak delivery

operations where employees utilize their personal vehicles.

Existing part-time employees shall be allowed to sign an

interest list between August 15th and September 15th each

year to perform this work between November 1st and the end

of the seasonal period in the applicable Supplement, Rider or

Addendum. Existing part-time employees who have signed

the intent list shall perform work covered by this Section

before the new hires referenced below. Existing part-time

employees who have signed the intent list shall be offered the

work opportunities in accordance with the provisions of the

applicable Supplement, Rider or Addendum.

Part-time employees shall be paid their inside rate or the

RPCD start rate, whichever is higher. Part-time employees

performing their inside job and seasonal package deliveries

using their own vehicle shall have an eight (8) hour daily

guarantee, but shall be obligated to complete their inside job

in addition to performing seasonal support work. Prior to

offering the work covered by this Section, existing Temporary

Cover drivers and other similar part-time cover

classifications (e.g., regular, temporary or utility drivers)

shall, however, maintain the first right to perform this

delivery work in accordance with the terms of the applicable

Supplement, Rider or Addendum.

If Peak delivery needs are not met by existing part-time

employees or cover drivers, the Employer may hire seasonal

support drivers who use their personal vehicles to deliver

packages between November 15th and December 26th each

year. Seasonal support drivers will be part-time seasonal

hires, W-2 employees and Union members in accordance with

Article 3, Section 2. The Union shall be provided access to

these employees for the purpose of encouraging them to join

the Union. These employees will receive a three (3) hour daily

guarantee. Such employees shall be entitled to all privileges

and benefits that may be provided in the applicable

Supplement, Rider or Addendum.

Both existing and Seasonal Support Drivers covered by this

Section shall be reimbursed at the applicable IRS rate for all

miles driven to perform deliveries and be provided insurance

coverage for their vehicle while performing work.

In no event shall the implementation of this Section serve to

diminish the overtime opportunities for RPCDs not using the

protections of Article 37, Section 1(c) as of September 1st of

that year, or alter bid delivery area routes for RPCDs.

Section 2.

A Joint UPS/IBT Competition Committee shall be created with

an equal number of Employer and Union representatives. The

Committee shall meet upon written request by either party for the

purpose of discussing and evaluating proposals which, if adopted

by the Committee, could create additional bargaining unit jobs,

enable the Employer to more effectively compete with other

companies, implement new services and products, or change

existing services. Nothing within this provision or Agreement

shall require the Employer to offer or maintain any particular

service or product.

In addition, the Joint UPS/IBT Competition Committee shall

have the authority to review line haul runs that may be proposed

by UPS Freight to create a two way run. UPS and the Union also

agree to review and approve proposed runs that may be inclusive

of runs currently being performed by vendors. In the event the

parties do not agree, the runs shall not be implemented.

Section 3.

[No change]

Section 4. Surepost

1) In order to retain existing commercial customers that are

solicited by a competitor offering services similar to those

described herein, or to attract new commercial customers, the

Company may offer service contracts that include the delivery of

packages by the USPS. Packages eligible for such delivery will

normally be less than ten (10) pounds in weight and less than two

(2) three (3) cubic feet in size, in accordance with paragraph (2)

below. The Company shall employ technology, prior to the

applicable preload operation, which identifies packages in

excess of ten (10) pounds or two (2) cubic feet shipped via

Surepost, so that they are redirected to bargaining unit

drivers. Further, UPS agrees that the Surepost will not be

presented as a general service offering except at UPS stores. This

service will only be offered for shipping from a business to a

residential customer. The Company agrees that it will not use

Surepost as a basis to diminish the size of the bargaining unit.

Notwithstanding any provision to the contrary, UPS agrees

that it will increase, as provided below, the number of

Surepost packages redirected to the bargaining unit on a

contract year basis as measured by the national average daily

volume (ADV). The redirected volume will be increased by

two (2) percent as compared to the national ADV for calendar

year 2022 (i.e. 42%) for the contract year beginning August

1, 2023. For each of the following contract year ending dates

the percentage of volume redirected shall be as follows: 8-1-

2024 (44%); 8-1-25 (45%); 8-1-26 (46%); 8-1-27 (48%); and

8-1-28 (50%).

2) The Company will continue to use technology that identifies

two or more Surepost packages to be delivered to the same

address and/or any combination of Surepost package(s) and

ground package(s) to be delivered to the same address. In such

circumstances, all of the Surepost package(s) and ground

7/26/2023

- 22 -

package(s) will be delivered by package drivers. The Company

will maintain and update the technology that identifies multiple

addresses in close proximity, defined as within one hundred

(100) feet, to which any combination of Surepost and ground

packages are to be delivered. The Company will monitor and

test the technology used for redirect to ensure it is operating

in accordance with the parameters of this Section not less

frequently than annually and shall provide evidence of the

testing to the Union’s Director of the Package Division. The

Company shall meet with the Competition Committee to review

any potential expansion of the volume to be redirected and

determine if it is economically feasible to handle in UPS’

operations.

The Company shall not deactivate or interfere with the operation

of the technology that redirects Surepost volume to the Company

unless volume is being rolled in a building due to delivery

constraints. In such event, redirect will only be deactivated for the

affected building(s). The redirect technology shall be

maintained to ensure that it is impossible for any local

Employer operations representative to suspend its operation.

The UPS President of Labor Relations, or his their designee, will

provide written notice to notify the Union’s Director of the

Package Division of any the building in which the deactivation

is taking place.

3) The Joint UPS/IBT Competition committee will meet on a

quarterly basis to review the progress of this service and discuss

potential technological enhancements that will allow Surepost

volume to be placed back in the UPS system for final mile

delivery. Any issues or disputes related to the Surepost service

that cannot be resolved by the Competition Committee shall be

referred directly to the Chairs of the Union and the UPS National

Negotiating Committees for discussion and resolution. In

addition, the Union may notify the Employer of any opportunities

to include additional addresses.

(4) If a driver or inside employee identifies a package designated

for Surepost that is clearly more than ten (10) pounds and/or

larger than three two (2) cubic feet, the package shall can be

removed from the system and redirected for delivery by a package

driver unless the Employer cannot deliver to the specified

address. The Employer shall ensure its employees are made

aware of the opportunity to redirect packages in excess of the

limits set forth in this Section. The Company will maintain an

Exception Resolution Application to ensure that, once a

package is identified, a clerk shall redirect the package(s) to

the appropriate package driver. No employee shall be

disciplined for redirecting a package pursuant to this

paragraph.

Section 5. DOT Hours of Service

The Company shall not change the DOT sixty (60) hours in seven

(7) days to the seventy (70) hours in eight (8) days rule for

package drivers except at Peak. With prior approval of the

Company’s President of Labor Relations and the Teamster’s

Package Division Director, the DOT standard may also be

changed if required due to Acts of God or emergencies creating

service disruptions. When the Company changes the sixty (60)

hour rule it shall first solicit volunteers to work in excess of sixty

(60) hours from all package car drivers in the center. If sufficient

volunteers cannot be obtained to cover the over sixty (60) work

hours, the Company will first force seasonal package car drivers,

non-seniority package car drivers, and then part-time cover

driver classifications and, then Article 22.4(b) drivers. Seniority

package car drivers will only be forced after exhausting the

seasonal, non-probationary drivers force process, part-time cover

driver classifications and Article 22.4(b) drivers. No regular

package car driver red circled under Article 22.4(b) will be forced

to work on a day off and exceed sixty (60) hours unless he has a

full eight (8) hours of duty available. Any regular or Article 22.4

package car driver who volunteers or is forced to work over sixty

(60) hours in a week pursuant to this paragraph will be

compensated at double-time for those hours. This paragraph

supersedes any provision in any Supplement, Rider or Addendum

which addresses this subject. This Section is not intended to give

the Company the right to force seniority package car drivers to

work on a weekend unless permitted by the applicable

Supplement, Rider or Addendum.

Section 6. Removal of Loads from Rails

In order to enhance employees’ opportunities to obtain a full-time

job and improve the Company’s ability to reduce time-in-transit

and improve service, the following provisions will apply:

1. The Company commits that the number of new drivers needed

to remove loads from the rail shall be, at least, two thousand

(2000), over the life of the current contract. The Company shall

be required to train or hire, at least two hundred (200) drivers by

December 31, 2019 and twenty-five percent (25%) of the

remaining needed drivers each calendar year thereafter. As long

as the Company satisfies these hiring/training obligations, it shall

have the right to cover these runs with substitute means of

transportation. The Employer shall provide the Union a report

identifying the loads covered by this Section. The Company shall

meet with the Union to resolve any issues which may arise if

circumstances beyond the Company’s control preclude the

Company from training or hiring needed drivers in any area. The

Company shall train or hire a sufficient number of drivers to

cover these runs by the end of the current labor agreement.

2. The Company shall provide the Package Division Director its

initial plans to remove and cover these loads. In addition, upon

request, the Company will review with the Package Division

Director, or his designee, the Company’s progress in

implementing this Section. The review shall include the

Company’s hiring and training of drivers to ensure that

reasonable efforts are being made to staff the runs with

7/26/2023

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bargaining unit employees and eliminate the vendors, as soon as

practical. If the Company is not making reasonable progress in

training the drivers necessary to replace vendors in any area,

UPS’ President of Labor Relations and the IBT Package Division

Director shall have the authority to determine how and where

training will be accomplished.

3. Article 43 shall apply to these runs except for the approval

process.

4. No seniority employee in the feeder driver classification as of

August 1, 2018 shall be displaced from the classification or laid

off as result of the use of substitute transportation pursuant to this

Section.

ARTICLE 27. EMERGENCY REOPENING

1. In the event of war, declaration of emergency, imposition of

mandatory economic controls, the adoption of a National Health

Program or any Congressional or Federal Agency action which

has a significantly adverse effect on the financial structure of the

Employer, during the life of this Agreement, either party may

reopen the same upon sixty (60) days’ written notice and request

renegotiation of the provisions of this Agreement directly

affected by such action. There shall be no limitation of time for

such written notice. Upon the failure of the parties to agree in

such negotiations, within sixty (60) days thereafter, either party

shall be permitted all lawful economic recourse to support its

request for revisions. If governmental approval of revisions

should become necessary, all parties will cooperate to the utmost

to attain such approval. The parties agree that the notice provided

herein shall be accepted by all parties as compliance with the

notice requirements of applicable law, so as to permit economic

action at the expiration thereof.

2. In the event of the declaration of a National Emergency due

to a Pandemic, either the Union through its Package Division,

or the Company through its President of Labor Relations,

may serve notice to engage in bargaining on a national basis

over the effects of the Pandemic. The parties shall meet within

five (5) business days of either party serving notice under this

section. However, there shall be no modifications of this

Agreement under this provision without approval of the

Teamsters UPS National Negotiating Committee.

ARTICLE 28. SYMPATHETIC ACTION

[No change]

ARTICLE 29.

Section 1. Jury Duty

[No change]

Section 2. Funeral Leave

[No change]

Section 3. Tax Deferred Savings Plan 401(k)

[No change]

Section 4. Martin Luther King Jr. Holiday

The Martin Luther King Jr. holiday will be added

as a named holiday in the Supplements, Riders or Addenda,

effective upon ratification of this Agreement.

ARTICLE 30. JURISDICTIONAL DISPUTES

[No change]

ARTICLE 31. GARNISHMENTS

[No change]

ARTICLE 32. SUBCONTRACTING

[No change]

ARTICLE 33. COST-OF-LIVING (COLA)

All seniority employees who have completed their appropriate

wage progression schedule shall be covered by the provisions

of a cost-of-living allowance, as set forth in this Agreement.

Employees who have not completed their appropriate wage pro-

gression on the effective date of a COLA increase, shall receive the

adjustment on a prospective basis on the date they complete their

wage progression schedules.

The amount of the cost-of-living allowance shall be determined

as provided below on the basis of the "Consumer Price Index for

Urban Wage Earners and Clerical Workers, CPI-W (Revised Series

using 1982-1984 Expenditure Patterns), All Items (1982-84 = 100),

published by the Bureau of Labor Statistics, U.S. Department of

Labor" and referred to herein as the "Index".

Effective August 1, 2019 2024 and every August 1, thereafter

during the life of the Agreement, a cost-of-living allowance will be

calculated on the basis of the difference between the Index for

May 202419 (published June 202419) and every May thereafter,

and the base Index for May 202318 (published June 202318) and

every May thereafter, as follows:

For every two tenths (0.2) point increase in the Index, over and

above the base (prior year's) Index plus three percent (3.00%)

there will be a one (1) cent increase in the hourly wage rates

payable on August 1, 202419 and every August 1 thereafter.

These increases shall only be payable if they equal five cents

($.05) in a year.

7/26/2023

- 24 -

All cost-of-living allowances paid under this Agreement will

become and remain a fixed part of the base wage rate for all job

classifications. A decline in the Index shall not result in the reduc-

tion of classification base wage rates.

Mileage paid employees will receive cost-of-living allowances on

the basis of .25 mills per mile for each one (1) cent increase in

hourly wages, subject to the threshold set forth above.

In the event the appropriate Index figure is not issued before the

effective date of the cost-of-living adjustment, the cost-of-living

adjustment that is required will be made at the beginning of the first

) pay period after the receipt of the Index.

In the event that the Index shall be revised or discontinued and in

the event the Bureau of Labor Statistics, U.S. Department of Labor,

does not issue information which would enable the Employer and

the Union to know what the Index would have been had it not been

revised or discontinued, then the Employer and the Union will

meet, negotiate, and agree upon an appropriate substitute for the

Index. Upon the failure of the parties to agree within sixty (60)

days, thereafter, the issue of an appropriate substitute shall be

submitted to an arbitrator for determination. The arbitrator's

decision shall be final and binding.

ARTICLE 34. HEALTH & WELFARE AND PENSION

Section 1.

(a)(i) Except as set forth in this Section 1(a), Health & Welfare

and/or pension contributions shall be increased by forty dollars

($40.00) per week on August 1, 2018 2023 and on each

subsequent August 1st during the life of the contract. Where the

employees are covered by both Teamster Health & Welfare and

Pension Funds in a Supplement, Rider or Addendum, the weekly

health & welfare and pension contributions shall be allocated by

the respective Joint Supplemental Area Negotiating Committees,

subject to the approval of the Joint National Negotiating

Committee.

(ii) 1) In those Supplements, Riders or Addenda, where the full-

time or part-time employees are covered by TeamCare and a

pension plan sponsored by the Employer, the hourly increase to

be allocated for Health & Welfare for these full-time employees

as follows:

August 1, 2023 2018 ($0.50)

August 1, 2024 2019 ($0.50)

August 1, 2025 2020 ($0.50)

August 1, 2026 2021 ($0.50TBD based on TeamCare costs

not to exceed $0.70)

August 1, 2027 2022 ($0.50TBD based on TeamCare costs,

not to exceed $0.70)

The rates shall be as follows for covered part-time employees:

August 1, 2023 2018 (not to exceed $0.50 30)

August 1, 2024 2019 (not to exceed $0.50 30)

August 1, 2025 2020 (not to exceed $0.50 30)

August 1, 2026 2021 (TBD based on TeamCare costs,

not to exceed $0.50)

August 1, 2027 2022 (TBD based on TeamCare costs,

not to exceed $0.50)

2) For years 2018 through 2021, the remaining fifty cents ($0.50)

will be allocated to the applicable Taft-Hartley Pension Plan or

the UPS/IBT Pension Plan, as applicable. Part-time employees

in the Teamsters Western Region & Local 177 Health Care Plan

who are covered by the UPS Pension Plan shall be treated the

same as a part-time employee in TeamCare and the UPS Pension

Plan. The health and welfare contribution increases in 2021 and

2022 will be based on Team-Care’s actual costs. In those two

years, the applicable Taft-Hartley Pension Plan or the UPS/IBT

Pension Plan, as applicable, will receive for a pension allocation

the differential between the in-crease to TeamCare and one dollar

($1.00). This paragraph shall be applied to the part-time

employee contributions in the same manner except in the first

three (3) years the remaining amount shall be seventy cents

($0.70). For part-time employees the differential in the last two

(2) years will be determined based on the fifty cent ($0.50)

maximum.

(iii) [Reserved]

(iv) The increases accrued under this Article on August 1st, of

each year, can only be allocated to health & welfare and/or

pension except as provided within this Article. Any dispute

concerning the allocation of health & welfare and pension money

shall be determined and/or resolved by the Joint National

Negotiating Committee.

(v) (1) If, in accordance with a duly adopted funding

improvement plan or rehabilitation plan, an IBT Pension Fund is

required to issue a schedule pursuant to ERISA Section 305

(added by the Pension Protection Act of 2006) that requires

contributions in excess of those contained within this Article, the

Union and the Employer shall promptly meet to negotiate

changes in the Agreement to generate sufficient savings to cover

the cost of the increased contributions. Agreement shall not be

unreasonably withheld. Once completed, the applicable Fund

shall be obligated to accept the schedule as if it was the beginning

of the term of a new labor agreement.

(2) In those areas with IBT Pension Funds that do not have a

duly adopted funding improvement plan or rehabilitation

plan that requires contribution rate increases, the maximum

amount available under (a)(i) above for August 1 of 2023,

2024, 2025, 2026 and 2027 shall be twenty dollars

($20.00).This amount shall be available first for use on H&W,

with any remaining amount being available for pension only,

notwithstanding Section 4 below. The additional twenty

dollars ($20.00) referenced in (a)(i) above on August 1 of each

of these years may only be used to satisfy the requirements

of a duly adopted funding improvement plan or

rehabilitation plan in those areas with such IBT Pension

Plans.

7/26/2023

- 25 -

(b) Monthly, daily and hourly health & welfare and pension

contributions shall be converted from the weekly rate increases

in accordance with past practice.

to make applicable contributions to all IBT Health and Welfare

Funds and all IBT Pension Funds (or the successor funds in case

of merger of funds) for full-time and/or part-time employees in

all Supplements, Riders and Addenda where the Employer was

making contributions for full-time and/or part-time employees on

May 1, 1982, unless stated to the contrary in this Article or

changes placing these employees in UPS plans are negotiated and

agreed to by the National Negotiating Committee.

(d) In those Supplements, Riders and Addenda where the

Employer was providing health & welfare and/or pension benefit

coverage to employees (either full-time or part-time) on May 1,

1982, the Employer will continue to provide health & welfare

and/or pension benefit coverage under the Company plan(s), with

funding under the related trust(s) established by the Employer for

this purpose, for the life of this Agreement unless specified

otherwise in the applicable Supplemental Agreement, Rider,

Addendum or this Article. However, this paragraph will only

apply through December 31, 2013, as it relates to health &

welfare coverage.

(e) All contractual provisions relating to pensions shall be

provided in the respective Supplemental Agreements, Riders and

Addenda. References to Company provided health & welfare are

being deleted from the Supplements, Riders and Addenda

because the Company will no longer be providing medical

coverage after December 31, 2013.

(f) The agreements on Maintenance of Benefits for Teamster

Health and Welfare Plans in the Western Region of Teamsters

Supplemental Agreement and in the Northern California

Supplement Agreement shall continue in full force and effect

during the life of this Agreement. The increase in any

Supplement, Rider or addendum as a result of a Maintenance of

Benefit increases shall be allocated as follows: the hourly

increase in Health and Welfare in each year of the contract

necessary to maintain benefits will be determined by the Trustees

of each individual Health & Welfare Plan. The remainder of the

contribution increase set forth in Section 1.(a), if any, will be paid

into pension. The Employer’s total annual increase in

contributions to the Taft-Hartley Pension and/or Pension Fund

equal at least the amount set forth in Section 1(a) above.

The portion of the increased amount set forth in paragraph 1(a)

above to be allocated to the Teamsters Western Region & Local

177 Health Care Plan each year will be determined by the

Trustees of that Plan. The remainder of the annual contribution

increase set forth in Section 1(a), if any, shall be paid into

pension. This paragraph shall not apply if the Western

Conference of Teamsters Pension Fund becomes subject to a

funding improvement or rehabilitation plan.

(g) The Employer shall not be required to contribute to any

jointly trusteed health and welfare plan, consistent with the

practices and rules and regulations of such plan in effect as of

August 1, 2018 2023 an amount greater than the amount it

contributed on July 31, 2018 2023 plus the increases required by

this Master Agreement, except as may be required by law

notwithstanding any language to the contrary in any Trust

Agreement, Participation Agreement or similar document. The

only exception to the above is the Maintenance of Benefits

provision in paragraph (f) above.

(h) In the event that there is any change in the existing national

health care legislation or if new legislation is enacted, the parties

agree to meet and discuss any ramifications of that legislation on

the provisions of this Article. In the event an IBT Pension Plan

is unable to maintain its current zone status under ERISA

Section 305 (added by the Pension Protection Act of 2006)

during the term of this Agreement at existing contribution

rates because of the limits described in (a)(v)(2) above, the

parties similarly agree to meet and discuss those

circumstances and any ramifications on the provisions of this

Article.

(i) UPS Part-time Pension Plan

(1) The UPS Pension Plan will be improved to provide monthly

benefits for part-time employees not covered by Teamster

Pension Plans as follows: The benefit formula in the UPS Pension

Plan for current or future part-time employees who are

participants will be increased effective August 1, 2004 to fifty-

five dollars ($55.00) for each year of past and future Credited

Service to a maximum of thirty-five (35) years of Credited

Service. The benefit formula in the UPS Pension Plan for current

or future part-time employees who are participants will be

increased solely for purposes of the monthly accrued benefit,

effective August 1, 2008 to sixty dollars ($60.00) for each year of

future Credited Service to a maximum of 35 years of Credited

Service. If a participant is in Covered Employment on August 1,

2008, he they shall receive the sixty dollars ($60.00) benefit

formula for the entire 2008 plan year.

Effective August 1, 2023 the benefit formula in the UPS

Pension Plan for current or future employees will be

increased to sixty-five dollars ($65.00) for each year of future

Credited Service to a maximum of 35 years of Credited

Service. If a participant is in Covered Employment on August

1, 2023, they shall receive the sixty-five dollars ($65.00)

benefit formula for the entire 2023 plan year.

The total monthly service pension benefit will be equal to the

following provided the employee meets the Credited Service

requirement.

$2275 $2450 for retirement at any age after 35 years of part-time

Credited Service

$1950 $2100 for retirement at any age after 30 years of part-time

Credited Service

$1625 $1750 for retirement at age 60 with 25 years of part-time

Credited Service

7/26/2023

- 26 -

$1325 $1450 for retirement at any age with 25 years of part-time

Credited Service (based on $58.00 $53.00 per year of Credited

Service)

(2) Part-time employees will receive one (1) year of Credited

Service for seven hundred fifty (750) or more paid hours. (Six (6)

months of part-time Credited Service will be granted for three

hundred seventy-five (375) to five hundred (500) hours worked

in a calendar year, and nine (9) months of part-time Credited

Service will be granted for five hundred one (501) to seven

hundred forty-nine (749) hours worked in a calendar year.) This

paragraph will also be applied to determine Credited Service for

all full-time employees on the payroll on August 1, 2002 who

were formerly participants in the UPS Pension Plan.

(3) The Employer will be responsible for funding the UPS

Pension Plan as required to provide the benefits described above

and will be responsible for maintaining the plan.

(4) The UPS Pension Plan will be governed by the terms of the

Plan document.

(5) Effective August 1, 2002, the Employer will grant additional

years of Credited Service in accordance with the terms of the Plan

to all full-time and part-time employees on the payroll on August

1, 2002, who worked for UPS after they were twenty-one (21) but

were denied Credited Service solely because the UPS Pension

Plan required that an employee be age twenty-five (25) or older

to participate in the UPS Pension Plan.

(6) For those multi-employer pension plans with which the UPS

Pension Plan does not have reciprocity, the UPS Pension Plan

will execute a mutually agreeable reciprocity agreement with

those plans.

(7) The Company will amend the UPS Pension Plan to allow an

employee with an hour of service in covered employment on or

after August 1, 2013 to become a participant on the January 1 or

July 1 (whichever is earlier), after reaching age 21 and

completing a 12 month period of employment beginning on their

hire date, or any subsequent calendar year, in which they earned

at least 375 hours of service. In addition, in order to receive any

retroactive benefit service as a result of the change, the

employee’s primary job as of August 1, 2013 must be a part-time

position. The Pension Plan will also be amended to reduce the

number of hours of service required to earn a vesting year from

750 to 375. This paragraph does not change how benefit service

is accrued.

(j) Long-Term Disability

(1) Full-time seniority employees will become eligible for long-

term disability (LTD) after six (6) months of employment for

non-occupational illnesses or injuries that last longer than twenty-

six (26) weeks.

(2) Long-term disability benefits will equal sixty percent (60%)

of the employee’s base weekly pay to a maximum of eight

hundred dollars ($800) per week for up to five (5) years. Long-

term disability benefits begin when short-term disability coverage

ends or after twenty-six (26) weeks from date of disability,

whichever is later.

(3) Average weekly base pay is computed by averaging paid

hours (maximum of forty (40) hours per week) each week during

the last full calendar quarter the employee worked and

multiplying that by the hourly rate of their base job. Weeks of

unemployment in the prior quarter will not be counted in the

calculation. If there were substantial weeks of unemployment, the

prior full calendar quarter may be used for the calculation.

(4) The definition of disability, termination of eligibility, offsets,

exclusions, limitations, claim procedures and any other related is-

sues will be controlled by the Summary Plan Description.

(5) The long-term disability coverage will become effective on

August 1, 2004 for eligible employees who become disabled after

that date. However, pre-existing conditions will not affect the

employee’s eligibility for LTD.

(6) In those situations where a Teamster Health and Welfare

Fund provides a short term disability benefit, the employee

receiving such benefit shall provide the UPS National LTD Plan

sixty (60) days advance notice of the estimated termination date

of the short term disability. If such notice is not provided, the UPS

National LTD Plan shall have the right to delay the

commencement of LTD payments.

(7) Any employee receiving LTD benefits pursuant to this Plan

shall be entitled to receive health care coverage in accordance

with the SPD for up to twelve (12) months only. An employee

will not be denied LTD benefits under this Section based on a

failure to qualify for Social Security Disability Benefits.

(8) Notwithstanding any Supplement, Rider or Addendum all

full-time UPS CSI employees will be provided long term

disability benefits through this Section.

(k) Part-time Retiree Coverage

(1) Effective August 1, 2002 the Employer began providing

health insurance coverage to all part-time employees, not covered

by a Union plan, who retire on or after that date. This section will

not apply to any employee who retires on or after January 1, 2014.

To the extent coverage would have been available under this

section 1(k), the employee instead shall be eligible for retiree

coverage through the Central States Health & Welfare Plan.

(2) To be eligible for the coverage, the part-time employee must

(i) not be eligible for Medicare; (ii) meet the same age and service

requirements as that of a full-time employee in the same

Supplement, Rider or Addendum and at a minimum, be at least

fifty-five (55) years of age with a minimum of twenty-five (25)

years of part-time service as defined in the UPS Pension Plan;

(iii) be covered as an active employee by a UPS-administered

health care plan for part-time employees at the time of retirement

and; (iv) not a part-time employee because of a voluntary bid to

part-time status in the five (5) years prior to retirement.

7/26/2023

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(3) A retiree’s legal spouse is also eligible for coverage if he or

she is they are not eligible for Medicare and is under age sixty-

five (65).

(4) Coverage and benefit levels shall be as specified in the

Summary Plan Description.

(5) Eligibility for coverage for retiree and spouse begins on the

first (1st) day after the employee’s active coverage ends.

(6) For active retirees as of December 31, 2013, the contribution

rates shall be as specified in the Summary Plan Description.

(l) Jointly Trusteed UPS/IBT Full-Time Pension Fund

The following provisions pertain to the UPS/IBT Full-Time

Employee Pension Plan (hereinafter “UPS/IBT Plan”) was

created for employees who participated in the Central States

Southeast and Southwest Areas Pension Fund (“CS Plan”) and

for future employees who would have participated in the CS Plan

absent this agreement who have one hour of service in Covered

Employment on or after January 1, 2008.

(1) Effective January 1, 2008 the Employer and the Union

established a new, single employer, jointly trusteed and

administered de-fined benefit plan within the meaning of 29

U.S.C. Section 302 (c) (5) for full-time employees who under the

prior agreement would have participated in the CS Plan. As of

December 26, 2007, the Employer will cease to have an

obligation to contribute to the CS Plan and will have no other

obligation to provide such employees with future benefit accruals

under the CS Plan.

(2) The benefit formula for current or future full-time employees

who are participants in the UPS/IBT Plan will be as set forth

below for each year of future service (hours worked in Covered

Employment on or after the effective date) up to a maximum of

thirty-five (35) years of Credited Service (such limitation is only

applicable to service pensions). This benefit is unreduced if

payable at Normal Retirement Age (age 65) and 5 years of vesting

service or at age 62 with 20 years of Credited Service. Benefit

payments may begin as early as Early Retirement Age (age 50

with five years of vesting service) and are reduced 6% per year

for each year and partial year prior to Normal Retirement Age.

There shall be no reduction or change in the level of benefits

described herein unless negotiated and agreed to by the Union.

Calendar Year Beginning Monthly Benefit

January 1, 2019 2024 $175.00 185.00

January 1, 2020 2025 $175.00 185.00

January 1, 2021 2026 $175.00 185.00

January 1, 2022 2027 $175.00 185.00

January 1, 2023 2028 $175.00 185.00

(3) Eligible employees become participants on the first day of

the month coincident with or immediately following the date the

employee completes one year of service with 750 hours of service

(upon becoming a participant, service credit will accrue

beginning with the very first hour of service that had been

performed when the participant began working in Covered

Employment). Employees already participants in the CS Plan at

the date this plan is established will be immediately eligible to

participate in the UPS/IBT Plan. No benefits are payable unless

the participant has at least 5 years of vesting credit or has reached

Normal Retirement Age while an employee. One year of vesting

credit is earned for each calendar year in which the participant

works 750 or more hours. The Employer will grant vesting credit

for those employees employed by the Employer before the

effective date of the UPS/IBT Plan based on the employment

records of the Employer or records of the CS Plan.

(4) Full-time employees will receive one (1) year of Credited

Service for each 1801 paid hours in Covered Employment in a

calendar year beginning on or after January 1, 2008. Employees

will receive partial years of Credited Service in monthly

increments (i.e., one month if employee worked 150 or more

hours in Covered Employment in that month). For purposes of

earning service credit for the service pensions only, full-time

employees will receive one week of service credit if he has they

have one hour of service in Covered Employment. For service

pensions only, if an employee has 0-19 weeks of service credit,

he they shall not receive any service credit for that calendar year.

If he has they have 20-39 weeks of service credit, the amount of

credit for that year will be equal to a fraction the numerator of

which is the number of weeks of credit and the denominator is

40. If the employee has 40 weeks of service credit for that

calendar year, he they shall receive one year of service credit.

(5) The Employer will be responsible for funding the UPS/IBT

Plan as required by applicable law.

(6) In addition to the normal benefit provided in paragraph (2)

above, there shall be a service benefit payable after twenty (20),

twenty-five (25), thirty (30) and thirty-five (35) years of full-time

service. There is a twenty (20) year benefit for anyone who has

reached age 50 and the amount will vary based on the person’s

age. There is a twenty-five (25) year service retirement benefit

for anyone who has twenty-five years of service regardless of age,

which shall be $2,000 per month if less than age 57 when benefits

commence and $2,500 per month if at least 57 when benefits

commence. The benefit for the thirty (30) year service retirement

shall be $3,400 per month regardless of the age of the retiring

employee. The benefit for thirty-five (35) years’ service

retirement shall be $3,900 per month regardless of the age of the

retiring employee. The plan document shall specify the amounts

for the 20 year service pension, eligibility criteria and how the

benefits are calculated.

Years of Service Age Monthly Service Pension

Credit

35 years Any age $3,900

30 or more years Any age $3,400 plus $100/yr of service

for years over 30 up to $3,900

25 years Any Age $2,000 up to age 57

25 Years 57 or older $2,500 plus $100/yr of

service

for years over 25 up to $3,500

maximum.

7/26/2023

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Effective January 1, 2024 2020, the following enhancements will

be implemented:

35 years, any age—$4,700 4,300

30 or more years, any age—$4,200 3,800 plus $100/yr of service

for years over 30 up to $4,700 4,300

25 years, any age up to age 57—$2,400

25 years, age 57 or older—$2,900 plus $100/yr of service for

years over 25 up to $4,700

For employees who reach the following age and years of

service milestones on or before July 31, 2028, the following

additional enhancements shall apply. These additional

enhancements shall become part of the employee’s vested

benefit and shall apply even if the employee retires after July

31, 2028:

35 years, age 55 or older—$5,300

30 or more years, age 55 or older—$4,800 plus $100/yr of

service for years over 30 up to $5,300

25 years, any age up to age 57—$3,000

25 years, age 57 or older—$3,500 plus $100/yr of service for

years over 25 up to $5,300

The UPS/IBT Plan will recognize full-time service in the CS Plan

for determining eligibility for the benefits in this section and will

offset at Normal Retirement Age the benefits accrued from the

CS Plan commencing at Normal Retirement Age. If the benefit

paid from the CS Plan is reduced as permitted or required by law,

the amount of such reduction shall not be included in this offset.

(7) The UPS/IBT Plan will also provide eligible employees with

a monthly disability benefit or lump sum disability benefit (based

on age and years of service).

(8) The UPS/IBT Plan will be governed by the terms of the plan

document and trust agreement, both of which are incorporated

herein by reference. Any claims for benefits are subject to

resolution solely through the UPS/IBT Plan administrative claims

process.

(9) All applicable Local Unions will be provided with a

competent and knowledgeable Company contact person with

a working phone number to assist employees with questions

and concerns related to the UPS/IBT Pension Plan.

Section 2. TeamCare

(a) Part-time and full-time employees covered by a Teamster

Health and Welfare Fund will continue to be covered by those

funds.

(b) Notwithstanding any provision in any Supplement, Rider or

Addendum, effective January 1, 2014 all full-time and part-time

employees on the payroll at that time and those hired thereafter

who would have had health and welfare coverage provided by an

Employer signatory to this Agreement will instead be provided

coverage through TeamCare regardless of the employee’s work

location. Weekly payments for the covered employees shall be in

accordance with the rules set forth in the applicable Supplement,

Rider or Addendum. If there are none then the rules set forth in

the Central States Supplement shall apply. UPS will be

responsible for making the weekly payments to TeamCare to

provide the medical coverage.

subject in any Supplement, Rider, or Addendum, including those

Supplemental provisions which require part-time benefits to be

equal to or the same as full-time medical benefits.

(d) Notwithstanding any contrary provision in any Supplement,

Rider, or Addendum, (i) individual and dependent/spousal health

coverage will be made available to part-time employees on the

payroll as of or hired after August 1, 2018 after nine (9) months

of active employment.

(e) Any eligible employee covered by this Section who retires

effective January 1, 2014 or thereafter shall be provided retiree

medical benefits through TeamCare.

(i) Any full-time or part-time CSI employee who is a participant

in a Company sponsored health & welfare plan shall be covered

by TeamCare set forth in Section 2 above, effective January 1,

2014.

(ii) The UPS Pension Plan shall be modified to provide a one

hundred and ten dollar ($110.00) accrual effective January 1,

2019 for all years accrued under the UPS Pension Plan.

Section 3. CSI Health and Pension Coverage

(i) Any full-time or part-time CSI employee who is a participant

in a Company sponsored health & welfare plan shall be covered

by TeamCare set forth in Section 2 above, effective January 1,

2014.

(ii) The UPS Pension Plan shall be modified to provide a one hun-

dred and ten twenty-five dollar ($12510.00) accrual effective

January 1, 2024 2019 for all years accrued under the UPS Pension

Plan.

Section 4. Re-allocations of Contributions/Wages

The Teamsters UPS National Negotiating Committee may

reallocate designated increases in Health & Welfare and /or

pension contributions (HWPC) and/or general wage increases

(GWI) provided in this Agreement in accordance with the

following rules:

1. Any portion of any GWI may be re-allocated as an increased

contribution to a Teamster Pension or Health &Welfare Fund.

The re-allocation shall apply to all employees in a Supplement,

Rider or Addendum, as applicable, provided all of the affected

employees (full or part-time, if applicable) are covered by the

same Pension or Health & Welfare Fund.

7/26/2023

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2. Twenty-five cents ($0.25) of a PC may be re-allocated as a

GWI. The re-allocation shall apply to all employees in a

Supplement, Rider or Addendum, as applicable, provided all of

the affected employees (full or part-time, if applicable) are

covered by the same Pension or Health & Welfare Fund.

3. Once a re-allocation becomes effective, it may not be changed.

4. A specified HWPC cannot be re-allocated to a GWI if the

pension fund has been certified as being in endangered or critical

status (as defined in ERISA section 305 (b)(1) or (b)(2).

5. The Employer must be notified of any re-allocation, in writing,

at least thirty (30) days prior to the effective date of the GWI or

HWPC.

Section 5. Substitute Health Plan

In the event the Central States Southeast and Southwest Areas

Health and Welfare Fund does not maintain the benefit coverage

and retiree contribution rate for retiree insurance (including

spousal coverage) in effect on the date of ratification of this

Agreement or in the event requested in writing by either party

to the Agreement, the Union and Employer shall meet to

determine and agree if there is a substitute multiemployer plan

which will provide comparable coverage. If mutual agreement is

reached to provide a substitute plan, the contribution payable by

the Employer pursuant to Article 34 Section 1 (a) shall be paid to

the new plan.

ARTICLE 35. EMPLOYEE'S BAIL, LICENSE,

SUBSTANCE AND ALCOHOL TESTING

Section 1. Employee's Bail And/Or Court Appearance

[No change]

Section 2. Suspension or Revocation of License

[No change]

Section 3. Controlled Substances Testing

[No change]

Section 3.1 Employees Who Must Be Tested

[No change]

Section 3.2 Testing

[No change]

Section 3.3 Screening Test

[No change]

Section 3.4 Confirmatory Test

[No change]

Section 3.5 Laboratory Testing

[No change]

Section 3.6 Types of Testing Required

[No change]

Section 3.7 Pre-Qualification Testing

[No change]

Section 3.8 Reasonable Cause Testing

[No change]

Section 3.9 Post-Accident Drug Testing

[No change]

Section 3.10 Random Testing

[No change]

Section 3.11 Notification

[No change]

Section 3.12 Rehabilitation and Testing After Return To

Duty/SAP and Employer Duties

A positive test specimen as a result of a DOT pre-qualification or

random test will result in a rehabilitation opportunity. An

employee whose test results are reported to the Medical Review

Officer by the HHS certified laboratory and who has been

contacted by the Medical Review Officer or his/her their

designee has seventy two (72) hours to contact the Medical

Review Officer to review the test results. If the review time

schedule is not met, then the Medical Review Officer (MRO) may

report to UPS Management that the test is verified as positive. If

neither UPS nor the MRO, after making all reasonable efforts, as

required by the DOT regulations, is able to contact the employee

within ten (10) days from receiving the laboratory results, the test

will be considered an uncontested positive test result. If the

Medical Review Officer determines a specimen is positive, then

the employee will have five (5) calendar days to evaluate his/her

their situation with an approved Substance Abuse Professional

and then up to fifteen (15) calendar days to enter the rehabilitation

treatment center after approval of a leave of absence as outlined

in Article 16, Section 5 of the National Master UPS Agreement.

UPS will follow the final recommendations of the Substance

7/26/2023

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Abuse Professional as to the appropriate after-care protocol and

post rehabil-itation unannounced drug testing.

The employee will be permitted to return to work after the SAP

has determined that the employee has successfully complied with

prescribed education and/or treatment and the employee has

provided a negative drug test result conducted under direct

observation, as per cutoff levels contained in Section 3.3 or

Section 3.4 of this Article, as applicable, and/or an alcohol test

with an alcohol concentration less than 0.02. The Employer will

make all reasonable efforts to conduct all return-to-work testing,

conference calls, and examinations within five (5) working days

of completion of a rehabilitation program.

It is understood that if the grievance procedure is utilized

contractual time limits on disciplinary action and the employee’s

request for rehabilitation will be suspended until resolution of the

grievance.

Substance Abuse Professional (SAP)

Each Substance Abuse Professional (SAP) must be a licensed

Doctor of Medicine or Osteopathy, or a licensed or certified

psychologist, social worker, employee assistance professional, or

drug and alcohol counselor (certified by the National Association

of Alcoholism and Drug Abuse Counselors Certification

Commission) with knowledge of and clinical experience in the

diagnosis and treatment of alcohol and controlled substance-

related disorders and be knowledgeable of the SAP function as it

relates to Employer interest in safety-sensitive functions and

applicable DOT agency regulations. In addition, the SAP shall

keep current on applicable DOT agency regulations and. comply

with the DOT qualification training and continuing education

requirements.

The SAP is responsible for performing the following functions:

1. Conducting the initial face-to-face clinical assessment and

evaluation to determine what assistance is needed by the

employee to solve problems associated with alcohol and/or drug

use;

2. Referring the employee to an appropriate education and/or

treatment program;

3. Conducting a face-to-face follow-up evaluation to determine if

the employee has actively participated in the education and/or

treatment program and has demonstrated successful compliance

with the initial assessment and evaluation recommendations;

4. Providing the Employer with a follow-up drug and/or alcohol

testing plan for the employee; and

5. Providing the employee and Employer with recommendations

for continuing education and/or treatment.

Follow-up testing shall consist of at least six (6) tests in the first

(1st) twelve (12) months following the employee’s return to duty.

The one (1) year period may be extended as necessary by written

verification of the Substance Abuse Professional. The affected

employee and Local Union shall be notified in writing within

ten (10) days of any extension required by the SAP beyond

the required one (1) year follow-up testing period. Tests shall

be conducted under direct observation.

Employer Responsibilities

Prior to allowing an employee to return to duty, after the

employee has tested positive for the presence of controlled

substances or has refused to submit to a drug test, the employer

shall:

A. Ensure that the employee is “drug free,” based on a drug test

that shows no positive evidence of the presence of a drug or a

drug metabolite in the employee’s system.

B. Ensure that the employee has been evaluated by a Substance

Abuse Professional (SAP) for drug use or abuse.

C. Ensure and confirm with the Substance Abuse Professional

that the employee demonstrates compliance with all conditions or

re-quirements of a rehabilitation program in which he or she they

participated.

Section 3.13 Disciplinary Action

Employees may be subject to discipline up to and including

discharge as provided below if they test positive for drugs

specified elsewhere in this Article.

1. Reasonable Cause Testing

a. A positive test is a dischargeable offense unless the Union and

the Employer expressly agree to a lesser penalty. Any such

agreement will not be precedent setting.

b. Refusal to submit to a reasonable cause drug test is a discharge-

able offense.

c. Non-Driving Reasonable Cause

i. 1

offense – A positive test for cannabis/marijuana

shall result in a warning letter (subject to successful

completion of rehabilitation).

ii. 2

offense – A positive test for cannabis/marijuana

five (5) or more years after the first offense shall

result in a warning letter (subject to successful

completion of rehabilitation).

7/26/2023

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iii. 3

offense – A positive test for cannabis/marijuana is

a dischargeable offense.

2. Post-Accident Testing

a. A positive test is a dischargeable offense.

b. Refusal to submit to a post-accident drug test is a dischargeable

offense.

3. Random Testing

a. 1st offense—A positive test shall result in a warning letter

(subject to successful completion of rehabilitation).

b. 2nd offense—A positive test is a dischargeable offense.

c. Refusal to submit to a random drug test is a dischargeable

offense.

4. Pre-qualification

a. 1st offense—A positive test shall result in disqualification/not

considered for feeder list until the next feeder driver school is

conducted (subject to successful completion of rehabilitation).

b. 2nd offense—A positive test is a dischargeable offense.

5. Other Dischargeable Offenses:

a. Failure to successfully complete rehabilitation.

b. A positive specimen as part of after-care drug testing.

c. Failure to comply with after-care treatment plan.

d. An adulterated or substituted specimen.

Section 3.14 Preparation for Testing

[No change]

Section 3.15 Specimen Collection Procedures

[No change]

Section 3.16 Specimen Shipping Preparations

[No change]

Section 3.17 Medical Review Officer

[No change]

Section 3.18 MRO Determination

[No change]

Section 3.19 Record Retention

[No change]

Section 3.20 Release of Drug Testing Information

[No change]

Section 3.21 Paid For Time

[No change]

Section 4. Alcohol Testing

[No change]

Section 4.1 Employees Who Must Be Tested

[No change]

Section 4.2 Testing

[No change]

Section 4.3 Screening Test

[No change]

Section 4.4 Confirmatory Test

[No change]

Section 4.5 Types of Testing Required

[No change]

Section 4.6 Reasonable Cause Testing

[No change]

Section 4.7 Post-Accident Alcohol Testing

[No change]

Section 4.8 Random Testing—Random Employee Selection

[No change]

Section 4.9 Notification

[No change]

Section 4.10 Rehabilitation and Testing after Return to Duty

7/26/2023

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[No change]

Section 4.11 Discipline

[No change]

Section 4.12 Preparation for Testing

[No change]

Section 4.13 Specimen Testing Procedures

[No change]

Section 4.14 Substance Abuse Professional (SAP)

[No change]

Section 4.15 Record Retention

[No change]

Section 4.16 Release of Alcohol Testing Information

[No change]

Section 4.17 Paid for Time

[No change]

ARTICLE 36. NONDISCRIMINATION

The Employer and the Union agree not to discriminate against

any individual with respect to hiring, compensation, terms or

conditions of employment because of such individual’s race,

color, religion, sex, gender identity, sexual orientation, national

origin, physical disability, veteran status, or age, or any other

class protected by in violation of any federal or state law, or

engage in any other discriminatory acts prohibited by law, nor

will they limit, segregate or classify employees in any way to

deprive any individual employ-ees of employment opportunities

because of race, color, religion, sex, gender identity, sexual

orientation, national origin, physical disability, veteran status, or

age or any other class protected by in violation of any federal

or state law, or engage in any other discriminatory acts prohibited

by law. This Article also covers employees with a quali-fied

disability under the Americans with Disabilities Act.

ARTICLE 37. MANAGEMENT EMPLOYEE

RELATIONS

Section 1.

(a) The parties agree that the principle of a fair day’s work for a

fair day’s pay shall be observed at all times and employees shall

perform their duties in a manner that best represents the

Employer’s interest. The Employer shall not in any way

intimidate, harass, coerce or overly supervise any employee in the

performance of his or her their duties. The Employer shall not

retaliate against employees for exercising rights under this

Agreement. In considering any grievance alleging retaliation for

exercising his their rights under the Agreement, the severity and

timing of the Employer’s actions that modify an employee’s work

assignment or reprimand employees shall be relevant factors to a

determination of motivation. The Employer will treat employees

with dignity and respect at all times, which shall include, but not

be limited to, giving due consideration to the age and physical

condition of the employee. Employees will also treat each other

as well as the Employer with dignity and respect.

The following language is applicable to grievances arising from

Article 37 Section 1(a) which allege intimidation, harassment,

coercion or over supervision:

1. Grievances not resolved by the Local or Area grievance

procedure shall be forwarded to the National Article 37

Grievance Committee. Such Committee shall be comprised of an

equal number of Union and Employer representatives and a

sitting arbitrator who shall decide the merits and penalty of each

case in the event of a deadlock by the Committee. Cases will be

presented and decided in accordance with Article 8 and the

National Grievance Committee Rules of Procedure.

2. The Article 37 Committee shall be empowered to provide a

monetary penalty for each proven violation of this Section up to

a maximum penalty of five (5) three (3) times the employee’s

daily guarantee depending on the severity of the offense.

3. Any individual member of management deemed by the

Committee to have committed two (2) or more violations of this

Section within a two (2) year period shall be required to appear

in person before the Committee for any subsequent grievance(s).

Failure of the management person to appear, absent a legitimate

excuse, shall result in a negative inference.

(b) It is the policy of the Employer to cooperate with a package

car driver who desires to be relieved of overtime, subject to the

understanding that such package car driver will complete his/her

their assignment, and subject to the provisions below.

The Center Manager and the Steward shall process such requests

based on seniority. The Employer shall allow a minimum of ten

percent (10%) of the package car drivers worked in any Center

off on a daily basis. No package car driver’s dispatch will be

adjusted more than two (2) times per month. It is understood that

to accomplish the above the Employer may need to provide an

earlier start time. This subsection applies regardless of whether

the driver has opted in or out pursuant to the provisions of

7/26/2023

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subsection (c) below. Such requests shall not be submitted during

the months of November and December.

An employee who desires to be relieved from overtime on a

particular day must make a written request on a form furnished

by the Employer. Such a request must be submitted no later than

the start of his/her their shift on the third (3

) fifth (5th) calendar

workday day preceding the day being requested. A signed copy

of the request form stating approval or disapproval shall be

returned to the employee by the end of the employee’s next

working day. Such request shall be granted or denied in

accordance with the terms of this subsection. If a request is denied

on the above referenced form, the employee shall receive a two

(2) hour penalty payment at his/her their double straight time

rate if the request should have been granted at this time based on

the criteria set forth in this sub-section. This two (2) hour payment

shall also apply if the Employer approves the request and later

informs the employee he/she they cannot be relieved of overtime,

provided the request continues to meet the criteria set forth in this

sub-section.

In addition, if an employee’s request is granted but the Employer

fails to adjust the driver’s dispatch prior to, but no later than,

their scheduled start time so as to provide an amount of work

that can reasonably be completed within eight (8) hours which

then causes the driver to work in excess of eight and one-half

(8.5) hours to complete his/her their route, the driver shall be

entitled to a two (2) hour penalty payment at his/her their straight

double time rate and the driver will retain the eight (8) hour

request for later use. No penalty shall be due if the employee

exceeds the eight and one-half (8.5) hour threshold as a result of

events beyond the Employer’s control.

The Center Manager and the Steward shall process such requests

based on seniority. The Employer shall allow a minimum of ten

percent (10%) of the package car drivers worked in any Center

off on a daily basis. No package car driver’s dispatch will be

adjusted more than two (2) times per month. It is understood that

to accomplish the above the Employer may need to provide an

earlier start time. This subsection applies regardless of whether

the driver has opted in or out pursuant to the provisions of

subsection (c) below. Such requests shall not be submitted during

the months of November and December.

Any employee whose request is granted shall not be required

to work more than eight (8) hours on the approved day. If the

driver’s dispatch for whatever reason was not adjusted, the

work will be removed prior to departing the building. While

on the route, if the driver determines that they will not be able

to finish within eight (8) hours, the driver will notify

management who shall have the responsibility to make the

necessary arrangement to ensure the driver is off in the

requested eight (8) hours. Drivers shall notify management

no later than 1:00 P.M. if they cannot complete their assigned

work within eight (8) hours. No employee shall be threatened,

harassed, or disciplined by management in the exercising of

this right.

package drivers who wish to be covered by the provisions of this

Section twice once each year. These lists This list shall be

provided to the Company by January 5th and June 5th of each

year. The Employer shall make a reasonable effort to reduce

package car drivers’ workdays below nine and one half (9.5)

hours per day for those on the list. If a review indicates that

progress is not being made in the reduction of assigned hours of

work, (i.e the package driver has worked more than 9.5 hours on

three (3) days in a work-week), the following language shall

apply, except for the period from November 15th through January

15th of the following year:

Employees within the full-time driver classification shall be

eligible for the protection of this Section provided: (1) the

employee covers a route for a full week; (2) the employee bids or

is assigned to cover a route for a full week but is prevented from

completing that bid or assignment due to reassignment by the

Employer; or (3) an employee with four (4) years of seniority as

a full-time package driver.

Drivers who choose to opt-in on the 9.5 list shall have the right to

file a grievance if the Employer has continually worked a driver

more than nine and one half (9.5) hours per day for any three (3)

days in a workweek. The Company will not assign excessive

over-time on the two (2) remaining days within the workweek in

order to retaliate against a driver for opting onto the 9.5 List. If

the employer is found to have assigned excessive overtime for

the remaining two days in violation of this provision, the Co-

Chairs shall have the discretion to award a penalty at triple

time as outlined in this section.

The “opt-in” lists provided by the Union shall become effective

on January 15th and June 15th. A driver may add or delete his/her

their name from the list at any time, with one week’s notice to

the Employer.

If a driver is paid a penalty under this subsection more than four

(4) times in a calendar year a meeting shall be scheduled with the

District Labor Manager, Business Agent and the Co-Chairs, or

their chosen designee of the applicable Supplemental panel

within forty-five (45) days of the filing to determine what

actions are necessary to ensure compliance.

If a grievance under this provision (or a grievance under any

excessive overtime provision of a Supplement, Rider or

Addendum) cannot be resolved at the local level, including

Supplemental Panels, where applicable, the Union may docket

the grievance to be heard by the “9.5 Committee.” This

Committee shall be composed of two (2) Union and two (2)

Employer representatives. The 9.5 Committee shall have the

authority to direct the Employer to adjust the driver’s work

7/26/2023

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schedule. Deadlocked cases shall be referred to the Employer’s

Vice President of Labor Relations and the Co-Chair of the

Teamsters United Parcel Service Negotiating Committee for final

and binding resolution.

The Employer’s Vice President and the Union’s Co-Chair shall

have the discretion to grant the grievant triple time pay for hours

worked in excess of nine and one half (9.5) hours per day and/or

to order the Employer to adjust the driver’s work schedule. After

the forty-five (45) day Supplemental Co-Chair meeting, if

there are continued violations the Co-Chairs shall have the

discretion to grant quadruple time penalties as outlined in

this section. In the event the Employer’s Vice President and the

Union’s Co-Chair cannot resolve a grievance, either party may

refer the matter to arbitration in accordance with Article 8. In the

event the position of the Union is sustained, the arbitrator shall

have the authority to impose any remedy set forth in this Section.

If there is a deadlocked grievance by the “9.5 committee” the Co-

Chairs of the National Negotiating Committee may require a

review of the adequacy of the Company’s staffing in the center in

which the grievance was filed. In the event the parties cannot

resolve a dispute over whether excessive overtime in violation of

this Section resulted from inadequate staffing in the center or

other causes, such as the temporary unavailability of drivers,

either may refer the matter to arbitration in accordance with

Article 8. If the position of the Union is sustained, the arbitrator

shall have the authority to award any remedy set forth in this

Section including back wages at the appropriate rate of pay to the

employee(s) adversely affected, as well as appropriate

progression credit. The back wages shall be equal to what the

employee(s) would have earned as a package driver at the

applicable daily guarantee versus what he they actually earned.

In addition, the Union Chair of the National Negotiating

Committee may, at any time, request a meeting with the

Employer’s President of Labor Relations to review the adequacy

of the Company’s staffing in any center having excessive 9.5

grievances deadlocked at the local level panel. If the dispute

cannot be resolved, either party may refer the matter to arbitration

in accordance with Article 8, Section 7. The next arbitrator in

rotation on the eastern Panel shall be assigned the case. The

arbitrator shall have the authority to award any remedy specified

in the paragraph above.

The 9.5 committee shall also have the authority to ensure that this

Section is implemented in such a way as to balance the

Employer’s need to protect the integrity of its operations with an

employee’s legitimate need to avoid excessive overtime.

The provisions of this Section 1(c) shall supersede any language

on “9.5” in the Central Region Supplement.

(d) No employee shall be disciplined for exceeding personal time

based on data received from the DIAD/IVIS or other information

technology.

Section 2.

Not more than one (1) member of management will ride with a

driver at any time except for the purpose of training management

personnel. No driver will be scheduled for more than one (1)

day’s ride per year with more than one (1) member of

management on the car. Such day will not be used for disciplinary

purposes. The sole reason for two (2) management employees on

the car is for supervisory training. If a supervisor assists a driver

during an O.J.S., that day will not be used in determining a fair

day’s work.

During scheduled safety training for feeder drivers the supervisor

will only drive for demonstration purposes and this will not

exceed one (1) three (3) hours per workday.

Section 3.

Any alleged violation of this Article shall be subject to the

applicable grievance procedure. Where an employee has

submitted a grievance regarding an excessive number of rides, no

member of management shall ride with that employee unless and

until the local level hearing is concluded provided such hearing

is held within five (5) working days. If the Union has a legitimate

reason for not being available within the five (5) working days,

the period will be extended up to a total often of ten (10) working

days.

The Employer will give no less than twenty-four (24) hours

notice to a seniority driver prior to any ride, except in cases

of post-accident/injury rides. Such notification will include

the reason for the ride. The results of any ride will be

reviewed with the employee and steward. A copy of the

documentation related to the ride shall be provided to the

employee and steward upon request. The twenty-four (24)

hours notice may be waived by mutual agreement.

ARTICLE 38. CHANGE OF OPERATIONS

Section 1.

(a) The Employer agrees that prior to any change in its operation

that will result in a change of domicile and/or possible layoff of

seniority employees, it shall notify the affected Local Union(s) in

writing with the specific details and information then available

and then meet jointly with them to inform them of the proposed

changes and to resolve questions raised in connection with the

proposed change. The information will be provided at least seven

(7) days prior to the meeting. During this joint meeting the

Employer and the Union shall reduce to writing all agreed upon

issues and both parties shall sign the written document in

7/26/2023

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acknowledgement of such agreement. The parties shall also

reduce to writing all unresolved issues, if any, and they shall be

referred directly to the appropriate Regional Change of

Operations Committee. This meeting shall be completed where

practical at least forty-five (45) days prior to the proposed change.

The change may not be implemented until the forty-five (45)

days’ notice is provided and the meeting is completed unless the

operational change is dictated by emergency conditions. The

Union shall not unreasonably delay the scheduling or completion

of the requested meeting. Any unresolved issues reflected in

Section (c) below, which have been reduced to writing, will be

resolved pursuant to that Section.

(b) Any agreed to change of operations reached by the Local

Union(s) and the Employer shall be reduced to writing and filed

with the Joint National Change of Operations Committee. It is

understood that a regional area representative of the affected

region(s) shall sit on the Joint National Change of Operations

Committee.

in each Regional area and will resolve issues arising out of the

proposed change of operations. The Committee will resolve

issues involving seniority application, health and welfare, and

pension coverage and layoff questions for employees who are

involved in the change. All affected parties will convene and

attend the Regional Joint Change of Operations Committee

meeting prior to the scheduled implementation date to resolve

these issues.

If the Regional Joint Change of Operations Committee is unable

to resolve the issues, such issues shall be referred to the Joint

National Change of Operations Committee for resolution. If the

issues reflected in this Section are not resolved by the Joint

National Change of Operations Committee, they shall be

submitted to an expedited arbitration using the arbitrators on the

National Panel for that area.

The Committee which decides the issues, as described above,

shall retain jurisdiction for a period of twelve (12) months

following the change of operations decision. The decision of the

Committee shall be final and binding.

Unless specifically covered in individual Supplements, Riders or

Addenda, the following shall apply:

1. Whenever a center is closed and the work is transferred to or

absorbed by another center, the affected employees will be

entitled to follow their work and their seniority shall be

dovetailed at the new center.

2. Whenever a center or hub is partially closed and the work of

package drivers and all other regular employees, part-time and

full-time, excluding feeder drivers, is transferred to or absorbed

by another center, the affected employees may either follow their

work and have their seniority dovetailed in the new center or be

allowed to exercise their seniority in their present center and

displace the least senior employee in their respective

classifications. If any of the employees whose work is transferred

elects not to follow his/her their work, then he or she they shall

have the same rights as the remaining employees on the seniority

list from which the work was transferred to bid the work being

transferred. Those employees who follow the work shall have

their seniority dovetailed in the new center.

3. In a Change of Operations affecting feeder drivers, the

following language will apply: Whenever a center is partially

closed and the feeder work is transferred to or absorbed by

another center, all feeder drivers, in seniority order, will have the

option of following the available work and have their seniority

dovetailed in the new center or be allowed to exercise their

seniority in their present center, and take whatever jobs become

open as a result of other employees following the work or taking

a layoff. If a senior feeder driver elects to take a job which has

been transferred out, the displaced employee(s) will fill the

vacated job(s) by seniority until the next bid. If there are still

vacancies in the feeder classification, these jobs will be offered

to other facilities within the jurisdiction of the destination

Local Union before hiring off the street. To be eligible to

transfer and fill these vacancies, the employee must be

qualified at the time the job is offered. Any employees

transferring from another facility pursuant to this paragraph

shall be eligible for moving expenses under Section 2 and the

employee’s seniority shall be determined by the applicable

Supplement, Rider or Addendum. The employee shall retain

benefits (e.g. vacation, sick leave, holidays, etc.) based on the

employee’s length of service.

(d) The language contained in Section 1(a) shall be applicable to

the Employer’s implementation of “satellite” facilities, provided,

however: (1) the issues subject to discussion shall not be limited

by paragraph (c) of this Section and, (2) in the event the issues

cannot be resolved by the Employer and the Local Union, or,

subsequently, in accordance with the established local area

practice, the open issues may be referred to the Vice-President of

Labor Relations and the Parcel and Small Package Division

Director, or their designees. If no resolution is reached, all

outstanding disputes shall be submitted to an expedited

arbitration to determine if the Employer has violated any

provisions of this Section or if the change will result in a violation

of any other provision of the collective bargaining agreement.

The expedited arbitration will be handled by one of the arbitrators

on the National Panel for that area.

Section 2.

As a result of the Employer moving an operation more than

seventy-five (75) fifty (50) miles, all full-time employees in

accordance with classification seniority who choose to move, will

have their moving expenses paid.

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The expense shall include the reasonable cost of packing and the

moving of household goods or house-trailer including

dismounting and mounting. The employee(s) who transfer will

have one (1) year from the date of the change to move.

(a) Employee(s) who are transferred out of their original area

where they are covered by a Teamster Pension Trust Fund into

the jurisdiction of another pension trust fund, such employee(s)

shall remain in their original pension trust fund.

The Employer agrees to pay the required pension contributions to

the employee(s) original pension trust fund as set forth in the trust

agreement, provided there is no conflict with any collective

bargaining agreement and/or trust agreement.

ARTICLE 39. TRAILER REPAIR SHOP

[No change]

Section 1. Recognition

[No change]

Section 2. Employee Classifications

[No change]

Section 3. Wage Rates By Classification

[No change]

Section 4. Health and Welfare

[No change]

Section 5. Pension

[No change]

Section 6. Seniority

[No change]

Section 7. General

[No change]

Section 8. Movement of Equipment

[No change]

Section 9. Amendments

[No change]

Section 10. Paint and Body Facilities

[No change]

Section 11. Training Program

[No change]

Section 12.

[No change]

Section 13. Trailer Conditioners, Inc.

(1) The Agreement between Southern Region of Teamsters and

Trailer Conditioners, Inc. (“TCI Agreement”) became a

supplement to the National Master United Parcel Service

Agreement (NMA) in 2007. Article 1, Section 2 and Article 2,

Section 1 shall apply to the job classifications described in Article

1 of the TCI Agreement. No other provision of the existing or any

future NMA shall apply to the employees covered by the TCI

Agreement except as provided in Paragraph 3 below or as

otherwise mutually agreed in writing by the parties.

(2) The TCI Agreement became a Supplement to the NMA upon

ratification of the 2007 Agreement. This Supplement shall remain

in full force and effect for the duration of this NMA. This

Supplement to the successor NMA will be subject to cancellation

or termination in accordance with Article 45 on July 31, 2018

provided that the notice provisions of the NMA are followed.

(3) Full-Time employees of Trailer Conditioners, Inc. (TCI) who

were participants in the Central States Southeast and Southwest

Areas Pension Fund (CS Plan) as of December 26, 2007, and all

future full-time employees who would have been covered by the

CS Plan absent this agreement, shall be covered by the UPS/IBT

Full-Time Pension Fund as set forth in Article 34, Section 1(l) of

the National Master Agreement (effective January 1, 2008) and

the related Plan Documents and Trust Agreement except the

benefit formula set forth in Article 34, Section 1 (l)(2) and (l)(6).

The benefit formula and monthly benefit for TCI employees will

continue at the level set forth in the TCI Agreement. As of

December 26, 2007, TCI ceased to have an obligation to

contribute to the CS Plan and will have no other obligation to

provide such employees with future benefit accruals under the CS

Plan. The provisions of Article 21, Section 1 of the TCI

Agreement became null and void upon ratification of the 2007

Agreement.

(4) All provisions in the TCI agreement shall remain in effect

through the expiration of this Agreement, as set forth in

Article 45 July 31, 2023.

ARTICLE 40. AIR OPERATION

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Preamble

[No change]

Section 1—Air Drivers

(a) Air driver work shall consist of delivery and pickup of air

packages which, because of time and customer commitments,

cannot be reasonably performed by regular package drivers.

Such work may include:

(1) Delivery of air packages which the regular delivery drivers

cannot deliver within guaranteed time commitments.

(2) Delivery of air packages arriving at the facility after regular

drivers have been dispatched.

(3) Delivery and pick up of air packages on weekends and

holidays.

(4) On Call Air pickups.

(5) Pick up at air counters and drop boxes.

The Company shall not expand the utilization of part-time

employees to pick up drop boxes, including those containing

ground packages. The Company shall provide the International

Teamsters Union with a report no later than March 1, 2013 and,

thereafter, an annual report by August 15th of each year for the

prior contract year identifying for each Local Union the total

number of drop boxes being picked up by regular full-time

package drivers, full-time air/combo drivers, and part-time air

drivers. The ratio of drop boxes picked up by regular full-time

package drivers, full-time air/combo drivers and part-time air

drivers shall be maintained (within two (2) percentage points)

during the term of this Agreement. Additional drop boxes will be

picked up by the same ratio of regular full-time drivers, full-time

air/combo drivers and part-time air drivers as established by the

March 1, 2013 report. The Company shall, when feasible, use

full-time employees to pickup drop boxes. The size and

dimensions of drop boxes existing on February 1, 2013, and those

added thereafter, shall not be increased, without the consent of

the Union. Upon ratification of this agreement the size of

future drop boxes shall not exceed twenty-two (22) cubic feet

without the mutual agreement of the Co-chairs of the Joint

National Air Committee.

(6) Additional late air pickups.

(7) Air drivers may, on an exception basis, be used to make

service on packages which are not air packages.

An exception package is intended to be when an Air Driver is

making a pick up, as outlined above, after the regular driver has

been at the customer’s premises, and the customer has an

exception ground package(s) for shipment, the air driver may

make service on this package(s). Air drivers may continue to

pick up Automatic Return Service packages but the features of

this service will not be expanded.

Any violation of Section 1(a) (7), shall obligate the Employer to

pay the Air Driver involved the difference between his/her their

rate of pay and the top regular package car driver wage rate

existing at that building. Grievances concerning violation or

abuse of this shall be referred directly to the National Air

Committee.

(8) Delivery of early AM Packages.

(9) Movement of air packages to airports and other locations

such as service centers, UPS buildings and driver meet points.

Shuttle work currently performed by regular full-time drivers

shall be excluded. Should a regular full-time driver vacate a

position which includes air shuttle work, that job shall either be

rebid as it previously existed and continue to be paid at the

regular driver rate or the air shuttle work may be combined with

other air work to create one (1) or more full-time air or full-time

combination job(s) paid in accordance with Section 6 below. In

no event shall such shuttle work be assigned to a part-time air

driver.

Shuttle work currently being performed by part-time air drivers

shall be converted to full-time air driver work when the driver

vacates the job except when there is not enough work available

to create a full-time job.

(b) The workday for Air Drivers shall be as follows:

(1) Eight (8) hours scheduled work in the air driver’s

classification, or a combination of eight (8) hours scheduled work

in the air driver’s classification and other bargaining unit

classifications, except air walker. These employees shall receive

all appropriate full-time benefits.

(2) Less than eight (8) hours scheduled work in the air driver

classification or a combination of less than eight (8) hours

scheduled work in the air driver classification and other

bargaining unit classifications, except air walker. The Employer

will notify the Union within thirty (30) calendar days in writing

when a less than eight (8) hour position is created, and the Union

will have thirty (30) calendar days to grieve the implementation

if they believe such position is improper. This grievance shall go

directly to the National Air Committee. These less than eight (8)

hour employees shall receive appropriate part-time benefits. No

less than eight (8) hour combination job will be rescheduled to

create two (2) part-time jobs.

(3) Combinations which require more than a two (2) hour gap

between jobs will normally not be used unless mutually agreed to

by the Local Union and the Employer.

7/26/2023

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The workweek for full-time air drivers currently working a

Monday through Friday workweek shall continue on that

schedule. The work-week for additional full-time air drivers shall

be any five (5) consecutive days in seven (7), and for all part-time

air drivers shall be any five (5) in seven (7) days.

(d) Air Driver Guarantee and Overtime

(1) Full-time air drivers shall have the same daily and weekly

guarantees as provided for regular drivers in the applicable

Supplement, Rider or Addendum. They shall receive overtime

pay for hours worked in excess of eight (8) hours in a twenty-four

(24) hour period or in excess of forty (40) hours per week. Full-

time air drivers who work a sixth or seventh report shall

receive time and one half (1 ½) for all hours worked.

(2) Less than eight (8) hour air drivers (part-time air drivers) who

have a regular scheduled start time shall have a three (3) three

and one-half (3-1/2) hour daily guarantee. They shall receive

overtime pay for hours worked in excess of eight (8) hours in a

twenty-four (24) hour period or in excess of forty (40) hours per

week.

(3) Any less than eight (8) hour combination air driver (part-time

combination air drivers) who works their three (3) hour guarantee

shall be guaranteed four (4) hours. They shall be paid overtime

for work in excess of eight (8) hours in a twenty-four (24) hour

period or in excess of forty (40) hours per week.

(4) The provisions above do not apply to an air exception driver

who performs extra work under Sections 1 (h), (j) or (k) below.

(5) Employees in paragraphs (2) and (3) above shall be entitled

to all other provisions in their Supplement, Rider or Addendum

(such as rest periods, shift differential, bidding to full-time jobs

and layoff provisions, etc.).

(e) Start Times

All full-time and part-time air drivers, who have a scheduled

assignment, shall have start times posted the previous week. Start

times may be adjusted with notification prior to the employees

reporting to work.

(f) Break Periods

(1) Full-time air drivers shall receive the same provisions for

lunch and/or breaks as regular drivers receive in their Local

Supplement, Rider or Addendum.

(2) This provision is not intended to give less than eight (8) hour

air drivers or less than eight (8) hour combination air drivers more

than one (1) break unless specifically stated otherwise in the

Local Supplement, Rider or Addendum. However, any less than

eight (8) hour air driver (part-time air driver) or less than eight

(8) hour combination air driver (part-time combination air driver)

who is dispatched with eight (8) or more hours will be provided

the same break or lunch period as that provided to full-time

drivers under the applicable Supplement, Rider or Addendum.

(g) Bidding Procedure

Air driver jobs shall be subject to the appropriate bidding

procedures in the applicable Supplement, Rider or Addendum.

(h) Exception Air Drivers

(1) The Employer and the Union recognize that there may be air

packages that cannot be delivered by the regular full-time

package car driver or the scheduled air drivers listed in this

Section. Therefore, the parties agree to continue the practice of

allowing the use of part-time employees who have signed the

exception qualified list or who have expressed in writing their

desire to be on the list and who have been certified to deliver these

exception air packages.

(2) Employees certified on the Exception Air Driver list who have

not worked over forty (40) hours in the current work week shall

be offered this work by seniority.

(3) Exception air drivers shall have no guarantee and will be paid

only for the time worked making air deliveries. In the event a

part-time employee works over eight (8) hours in any one (1)

twenty-four (24) hour period, he or she they shall be compensated

at the rate of time and one-half (1-1/2) for all hours worked over

eight (8) hours at the rate of pay specified in Section 6 below.

(4) No exception air driver shall be required by the Employer to

wait at a center for packages off the clock.

(i) Personal Vehicles

Air Exception drivers will use the Employer’s vehicles whenever

possible. Air Exception drivers who would happen to use their

personal automobiles shall be reimbursed at the IRS limit

applicable per mile for all miles driven to perform the air driving

work in addition to their air driver wages. When an employee uses

his/her their own vehicle in the service of the Employer and is

involved in an accident, the Employer shall be responsible for the

damages to both the employee’s vehicle and to the other person’s

vehicle and/or property, and will provide liability insurance

coverage.

(j) Holiday Work

When it is necessary to provide air service on holidays, the

following procedure shall be used:

7/26/2023

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(1) The Employer shall offer this work in seniority order to full-

time air drivers who have worked at least one (1) day that week

before offering it to part-time air drivers.

(2) When the scheduling needs cannot be met using the above

provision, the Employer shall have the right to force part-time air

drivers and then full-time air drivers to work starting in reverse

order of seniority. If after exhausting the above steps scheduling

needs are still not met, the Employer shall offer the work in

seniority order within the package driver classification. If more

drivers are still needed the reverse seniority order concept will be

used for package drivers. Package car drivers who work on a

holiday may make a written request for an eight (8) hour

guarantee. Such written request shall be made the last work day

prior to the holiday. All time worked by these drivers on a holiday

will be paid at the Supplemental holiday rate.

(3) The scheduling of the support work will be reviewed with the

Local Union prior to the holiday. If the Local Union believes that

the Employer has scheduled an excessive number of support

employees, it shall have the right to appeal directly to the National

Air Committee. The National Air Committee will review the

schedule and determine whether the Employer has scheduled an

excessive number of support employees. If it is determined by the

National Air Committee that the Employer worked excessive

support employees, the excessive employees worked shall be paid

double-time for hours worked in addition to their holiday pay.

(4) Air drivers and support employees scheduled on a holiday to

ensure air service to the customer, including time performing

incidental work, shall receive straight-time for all hours worked

up to eight (8) hours in addition to the holiday pay. Overtime

provisions shall apply if the employee works over eight (8) hours.

(5) All part-time bid air drivers who work on a holiday will

be provided a three and one half (3 ½) hour guarantee.

(k) Saturday or Sunday Air Work

(1) To perform Saturday or Sunday air work the Employer and

the Union recognize the need for air drivers other than those

regularly scheduled. Qualified part-time employees who are

interested in performing this work will so notify the Employer,

be certified and be placed in seniority order on a posted qualified

air driver list. Such work will be first offered in seniority order to

employees on the qualified list who have not worked more than

thirty-seven (37) hours in the current week. This work shall then

be offered in seniority order to qualified part-time employees

regardless of hours worked. If the scheduling needs still cannot

be met, and additional employees are needed, the Employer may

force qualified part-time employees in reverse seniority order.

(2) These employees shall be paid at the air driver’s straight-time

rate of pay in accordance with Section 6 below. Time and one-

half (1-1/2) will be paid after eight (8) hours per day or after forty

(40) hours per week.

(3) All employees working as an air driver on Saturday or Sunday

under this Section shall have a three (3) hour guarantee.

(l) References in this Article to an air driver, part-time or full-

time, include employees who on a scheduled basis, perform (1)

only air driving work, or, (2) air driving work in combination with

other bargaining unit work.

Section 2. Air Walkers

[No change]

Section 3. Air Hub and Gateway Operations

[No change]

Section 4. Start Times for Air Shuttle and Air Feed Drivers

[No change]

Section 5. Grievance Procedure

[No change]

Section 6. Wages

All hourly wages for employees covered under Article 40 will be

determined in accordance with this Section, Article 22 and

Article 41 where specified.

(a) Part-time air drivers including exception air drivers will be

paid as follows:

Start $15.00 23.00

Twelve (12) months $16.00 24.00

Twenty-four (24) months $17.00 25.00

Thirty-six (36) months $21.00 29.00

Forty-eight (48) months Top Rate

(l) Effective August 1, 2018 2023 the prior $33.94 $28.64 forty-

eight month (top) rate will change on August 1st of each year of

the Agreement to reflect the agreed upon general wage increases.

(2) Seniority part-time employees entering a part-time air driver

job after the effective date of this Agreement will begin at the

seniority rate. Part-Time air drivers in progression as of the

ratification of this Agreement will maintain a two (2) year

progression to Top Rate as set forth in Article 40, Section 6(a) of

the 2013-2018 NMA but will be paid the applicable hourly rates

as set forth above.

Part-time employees who are awarded a scheduled part time air

driver job shall receive progression credit in accordance with the

7/26/2023

- 40 -

following: for each four (4) days on which exception air work

was performed in the two (2) years immediately prior to the bid

award, one (1) month of progression credit shall be granted. In

addition, if a bid part-time air driver is displaced, he/she they will

retain his/her their progression credit under paragraph (a.) for

any air exception work.

b. Full-time air drivers will be paid as follows:

Start $17.00 $23.00

Twelve (12) months $18.00 $24.00

Twenty-four (24) months $19.00 $25.00

Thirty-six (36) months $23.00 $29.00

Forty-eight (48) months Top Rate

1. Effective August 1, 2023 2018 the prior $35.94 $30.64 (top) rate

will change on August 1st of each years of the Agreement to

reflect the agreed upon general wage increases.

2. Seniority full-time employees entering a full-time air driver

job will be slotted based on their Company seniority. Full time

air drivers in progression as of the ratification of this Agreement

will maintain a two (2) year progression to Top Rate as set forth

in Article 40, Section 6(b) of the 2013-2018 NMA but will be

paid the applicable hourly rates as set forth above.

in the applicable progression in paragraphs (a.) or (b.) above. All

existing full-time or part-time air drivers in progression on

August 1, 2023 shall be slotted into the new progressions in

paragraphs (a) or (b) above, as applicable. Part-time

employees who bid into a full-time air driver job covered by this

Section will be red-circled at their current wage rate until such

time as the calculated progression rate set forth above exceeds

that rate. The transfer date will become his/her their full-time

start date for the purposes of applying the progression set forth

above. A part-time employee shall not lose the red-circle

protection provided by this paragraph as a result of transferring

from one full-time air driver job to another full-time air driver

job.

(d) All current full-time or part-time air drivers who are out of the

progression in the prior agreement shall receive the general wage

increases provided for in accordance with Articles 22 or 41, as

applicable.

(e) Employees in existing or newly created less-than-eight hour

combination jobs shall be paid the part-time air rate in accordance

with paragraph (a.) above for air driver work and their normal

part-time wages for the hours worked in other classifications in

accordance with Article 22.

(f) Employees who are in existing full-time combination jobs or

who hereafter enter a full-time combination job shall be paid the

appropriate full-time air rate for air driver work and appropriate

inside part-time rate for the hours worked in other classifications.

If an employee has no established inside rate, that employee will

be paid the appropriate part-time rate in accordance with his their

Company seniority.

(g) Employees on the exception air driver list shall continue to be

slotted into the part-time air driver progression in paragraph (a.)

above based upon the length of time the employee has been

performing air exception work. Seniority employees who begin

performing air exception work will start at the seniority rate. New

part-time employees signing up to perform air exception work

will receive the start rate in paragraph (a.) above until they gain

seniority.

(h) Part-time air hub and gateway employees and air walkers shall

be paid the applicable part-time rate of pay as set forth in Article

22, Section 5(a) or (b). However, if a part-time employee is

awarded an air walker job he/she they shall continue to receive

his/her their inside rate in accordance with Article 22. Full-time

air hub and gateway jobs shall be paid in accordance with Article

41, Section 3 unless there is an existing agreement under Article

40, Section 3 expressly providing a pay rate for such a

classification.

(i) Air operation employees who are covered by a daily guarantee

shall receive the same rest period provisions as outlined in the

appropriate Supplement, Rider or Addendum.

(j) Upon ratification of this agreement, employees performing

deice and pushback duties in air hubs and gateways shall be

paid an hourly premium for the duration of the shift in which

such duties are performed. For deice duties the premium

shall be one dollar ($1.00) per hour, for pushback the

premium shall be seventy-five cents ($0.75) per hour.

Within thirty (30) days of the implementation of the

Employer’s new payroll processing system, but no later than

January 1, 2026, the following shall apply:

Employees performing k-loading duties, on aircraft only,

shall receive a premium of fifty cents ($0.50) per hour for the

duration of the shift in which such duties are performed.

ARTICLE 41. FULL-TIME EMPLOYEES

Section 1. Full-time Wage Increases

All full-time employees who have attained seniority as of August

1, 202318 will receive the following general wage increases for

each contract year. The total wage increase for the year will be

as follows:

2018 seventy cents ($0.70)

2019 seventy-five cents ($0.75)

2020 eighty cents ($0.80)

2021 ninety cents ($0.90)

7/26/2023

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2022 one dollar ($1.00)

2023 two dollars and seventy-five cents ($2.75)

2024 seventy-five cents ($0.75)

2025 seventy-five cents ($0.75)

2026 one dollar ($1.00)

2027 two dollars and twenty-five cents ($2.25)

Full-time employees still in progression on the effective date of this

Master Agreement shall receive the above contractual increases.

They will be paid no less than what they are entitled to in accor-

dance with Article 41, Section 2 below.

Section 2. Full-time Wage Progression

(a) Notwithstanding any provision in any Supplements, Riders or

Addendum the progressions set forth in Sections 2(c) and 3 below

will be controlling with regard to any employee entering a full-

time job after August 1, 202318 covered by those Sections.

(b) No employee shall be required to complete a full-time pro-

gression more than one (1) time even if he or she transfers they

transfer between full-time jobs except as set forth in this

paragraph. The sole exception is when an employee is awarded a

package car or feeder driver job and has not previously held a

full-time job which includes driving duties. In such event, the

employee will have a break-in rate equal to the employee's

current wage rate until six (6) months from the date the employee

entered the job. The employee will then go to the prevailing top

rate. A part-time air driver who has completed the Article 40

progression, bids a full-time inside job and then a driver job

within two (2) years shall have the same break-in period.

feeder or other full-time job (other than an air, Article 43 jobs, or

a job covered by Sections 3 or 5 , 4 or 6 below) after August 1,

202318 shall be as follows:

Start $21.00 $23.00

Twelve (12) months $23.00 $24.00

Twenty-four (24) months $24.00 $25.00

Thirty-six (36) months $28.75 $30.75

Forty-eight (48) months Top Rate

Part-time employees on the payroll as of July 31, 202318 who

subsequently are promoted to full-time employment under this

paragraph will be red circled until such time as the calculated

progression rate exceeds that rate. The transfer date will become

his/her their full-time start date for purposes of applying the

above progression.

If a part-time employee bids to a full-time position and the top

rate of the classification is less than his/her their current rate, the

employee shall be placed at the top rate of the new classification

immediately.

This Sub-section shall supersede any provision to the contrary in

any Supplement, Rider or Addendum.

The progressions in this sub-section shall apply to full-time

employees who may have had separate progressions in their

Supplements, Riders or Addenda including, but not limited to,

UPS CSI.

Employees in the Article 41 Section 2(c) progression in the prior

Agreement as of the date of ratification shall be slotted into the

new progression above.

Section 3. Full-time Inside Wages

The rates in this Section shall not apply to any full-time inside

jobs guaranteed in Article 22, Section 2 created prior to August

1, 1997. Rather, for employees entering those jobs, Article 41,

Section 2 (c) above shall apply.

Part-time employees whose rates are higher than those set forth

below who bid into a full-time inside job covered by this Section

shall be paid their current inside wage rate plus the general wage

increases.

Other part-time employees who bid into a full-time inside job

covered by this Section will be red circled at their current wage

rate until such time as the calculated progression rate set forth

below exceeds that rate. The transfer date will become his/her

their full-time start date for purposes of applying the progression

set forth below. A part-time employee shall not lose the red circle

protection provided by this paragraph as a result of transferring

from one full-time inside job to another full-time inside job.

Start $16.00 23.00

Twelve (12) months $17.00 24.00

Twenty-four (24) months $18.00 25.00

Thirty-six (36) months $21.00 28.00

Forty-eight (48) months Top Rate

The Top Rate shall be $30.64 $35.94 plus the general wage

increases provided in Section 1 above.

Employees who are in progression as of the date of ratification,

will be slotted into the above progression. When the progression

is completed for these employees, the employee shall be placed

at the then current top rate and shall thereafter be eligible to

receive the general wage increases beginning on the next date

specified in Article 41, Section 1.

Full-time employees who bid into a full-time inside job covered

by this Section will be paid in accordance with their full-time

seniority date. Full-time employees with four (4) or more years

of full-time seniority who bid into a full-time inside job will be

paid the top current rate of the classification.

The above progression shall also apply to full-time inside jobs

within UPS CSI notwithstanding any applicable Addendum.

Section 4. Full-time Wages For Article 22.4(b) Jobs

Part-time employees whose rates are higher than those set forth

below who bid into a full-time 22.4(b) job covered by this Section

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shall be paid their current inside wage rate plus the general wage

increases.

Other part-time employees who bid into a full-time 22.4(b) job

covered by this Section will be red circled at their current wage

rate until such time as the calculated progression rate set forth

below exceeds that rate. The transfer date will become his/her

full-time start date for purposes of applying the progression set

forth below. A part-time employee shall not lose the red circle

protection provided by this paragraph as a result of transferring

from one full-time inside job to another full-time inside job.

Start $20.50

Twelve (12) months $21.25

Twenty-Four (24) months $22.75

Thirty-Six (36) months $25.00

Forty-Eight (48) months Top Rate

The Top Rate shall be $30.64 plus the general wage increases

provided in Section 1 above.

Any part-time employee performing package car cover-type work

in a Supplement, Rider or Addendum who bids into a 22.4 driver

job will be treated the same as if he entered into a regular package

car driver job under Article 41, Section 2 (c) for progression

credit and red circle purposes.

Full-time employees who bid into a full-time 22.4(b) job covered

by this Section will be paid in accordance with their full-time

seniority date. Full-time employees with four (4) or more years

of full-time seniority who bid into a full-time inside job will be

paid the top current rate of the classification.

Section 4 5 – Full-time UPS CSI TCI and Challenge Air

Cargo Employees

Full-time UPS CSI, TCI and Challenge Air Cargo employees

shall receive the general wage increase on the dates set forth in

Article 41, Section 1.

Section 5 6-Mechanic Progression

The progression for employees entering a mechanic job after

August 1, 2023 2018 shall be as follows:

Current Top Rate

Start: 85%

Twelve (12) months 90% Top Rate

Twenty-Four (24) months Top rate

Mechanics in progression on August 1, 202318 shall be slotted

into the above progression.

ARTICLE 42. UNIFORMS

[No change]

ARTICLE 43. PREMIUM SERVICES

Section 1. Job Protection

[No change]

Section 2. Sleeper Team Operations

The Employer may use subcontractors for new custom contracts

for reasonable start-up periods. In no event shall such start-up

period exceed thirty (30) days. Any use of this provision shall

be reviewed and approved by the Union Chair of the

Premium Services Committee.

(1) Bidding and Mileage

(a) Sleeper cab runs approved pursuant to the provisions of

Article 43 will be posted and employees may bid for such runs in

accordance with the bidding procedures set forth in the applicable

Supplement, Rider or Addendum. No seniority employee shall be

forced to drive in a sleeper cab run unless otherwise provided in

their Feeder Work Rules or Local Union practice. If after the

bidding process is exhausted, the new jobs/vacancies have not

been filled, the following procedure shall apply. These jobs

will be offered to other facilities within the jurisdiction of the

local union which have qualified feeder drivers on lay-off,

displaced, or otherwise not holding a bid within the feeder

classification, before hiring off the street. To be eligible to

transfer and fill these new jobs/vacancies, the employee must

be qualified at the time the job is offered. Any employees

transferring from another facility pursuant to this paragraph

will have their seniority determined by the applicable

Supplement, Rider, Addendum, or Local Union

agreements/practice. The employee shall retain benefits (e.g.

vacation, sick leave, holidays, etc.) based on the employee’s

length of service. If no employee fills these new

jobs/vacancies, the Company will hire off the street. Drivers

hired off the street to cover open sleeper jobs will not be

eligible to bid on new/vacated jobs for a period of eighteen

(18) months. A senior driver who successfully bids a sleeper cab

run shall be permitted to select his/her their respective sleeper

cab team partner without regard to seniority, provided that the

driver selected as a partner has, prior to such bid, acknowledged

his/her their agreement, in writing, to accept such permanent

sleeper cab run driving assignment and provided further that the

selected partner possesses the required qualifications.

(b) There shall be no two (2) person operations on runs with loads

of less than five hundred fifty (550) outbound miles on the first

leg and one thousand one hundred (1,100) miles round trip. All

bids and cover drivers will receive reasonable time off at their

home center. Every team driver shall be guaranteed at least forty

(40) hours of pay per week.

(2) Driver Team

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Once driver teams are established it is understood that they are

not to be separated unless mutually agreed to by the Employer,

the Local Union, and the driver team involved, except in case of

emergency or reduction in force. Only two (2) drivers shall be

permitted in sleeper cab equipment at any one (1) time except in

case of emergency, an Act of God, or where a new type of

equipment is put into operation.

(3) Furnished Transportation and Lodging

Comfortable, sanitary lodging shall be furnished by the Employer

in all cases where an employee is required to take a rest period

away from his their home center. Air-conditioned hotel rooms

shall be furnished. Hotel rooms shall be equipped with blinds or

draperies or be suitably darkened during daylight hours. There

shall be no bunk beds or double beds and both drivers shall be

entitled to a room. All team driver lodging must be maintained on

the basis of one (1) driver per room.

Under unusual circumstances in which the Employer is unable to

furnish satisfactory lodging, the employee shall be paid fifty one

hundred dollars ($50.00) ($100.00) for each rest period; except

where accommodation is unavailable at such figure and it is

necessary for the driver to pay in excess of fifty one hundred

dollars ($50.00) ($100.00), he they shall receive reimbursement

of the actual cost of the room.

The Employer shall furnish transportation to and from the nearest

public transportation, when there is unreasonable delay, at an

away-from-home center, provided there is no public

transportation available in the near vicinity and provided further

that this provision shall not apply where the driver is allowed to

use company equipment for transportation.

All time waiting for motel/hotel furnished transportation and/or

waiting for a sleeping room to be made available will be paid at

the hourly rate of pay.

(4) Safety and Health Committee

The parties will maintain a safe and healthy working environment

in sleeper operations. The parties agree to establish a committee

composed of four (4) members each to review the comfort and/or

safety aspects of sleeper berths pertaining to ride. Such

committee shall meet by mutual agreement of the Co-chairmen

as to time and place. The committee shall confer with appropriate

representatives of equipment manufacturers and/or other experts

on this subject as may be available. The intent of the committee

is to identify any problems with the comfort and/or safety aspects

of sleeper berths pertaining to ride that may exist, and through its

deliberations with the manufacturers and/or other experts,

develop ways and means to correct such situations. Any disputes

will be referred to the Joint Premium Service Review Committee.

(5) Sleeper Equipment

Newly purchased equipment will meet the following

specifications:

(a) Minimum interior dimensions of the sleeper berths shall be:

Length—79/80 inches;

Width—36 inches; and

Height—24 inches.

It is understood that a “manufacturing tolerance of error” of one

inch (1”) is permissible, provided the original specifications were

in conformity with the above recommended dimensions.

(b) Sleeper berths shall be equipped with individual heat and air

conditioning controls and units. Automatic idle shut offs will not

be activated unless required by law. If this occurs, the affected

local union may on a case-by-case basis appeal to the chairs of

the Article 43 Committee for resolution.

mounted on the entrance side of the sleeper berth.

(d) Sleeper equipment shall be equipped with a power window on

the passenger’s side of the cab that is operable from the driver’s

side of the cab.

Leased equipment should be consistent with the above

specifications and comply with all DOT Regulations. Any

variations shall be reviewed with the Article 43 Union Chair.

(6) Subsistence Allowance

Each employee shall be allowed road expenses in the amount of

forty-five dollars ($45.00) thirty-five ($35.00) for each one

thousand (1000) miles traveled.

(7) Delay Time

It is the intent of the parties to make the driver whole for all

justified delay time, such as waiting for late loads, unscheduled

on property work, accident delay or on road equipment

breakdown. Any disputes will be referred to the Joint Premium

Service Review Committee.

(8) Solo Driving

There shall be no solo driving permitted in sleeper cab operations,

except in cases of emergency. In case of emergency where one

(1) driver is used to complete a sleeper cab trip, the driver so used

shall receive the full mileage rate of pay per unit mile traveled in

addition to all other compensation provided for herein. In cases

of emergency solo driving of such length that a rest period is

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necessary, the driver, in addition, shall be provided the cost of

lodging for such rest period.

(9) Layover Pay

In the event a driver is required to take a rest period during any

one (1) round trip away from his their home center, the driver

shall be compensated at his their regular hourly rate of pay for

all hours after the first eight (8) hours of the layover.

(10) Mileage Determination

Sleeper drivers shall be paid for the scheduled miles that they

drive, on a point-to-point basis over the routes driven. The

method of measurement for mileage under this provision will be

Microsoft Streets and Trips mapping or similar successor

software.

(11) All employees entering after August 1, 2023 2018, a job

classification paid on a mileage rate, who have not yet completed a

full-time progression, shall be paid a progression rate equal to the

following:

Single Double Triple

Start .5816 .5939 .6062

Twelve (12) Months .6203 .6335 .6466

Twenty-Four (24) Months .6591 .6731 .6871

Thirty-Six (36) Months .6979 .7127 .7275

Forty-Eight (48) Months TOP RATE

Progression Single Double Triple

Start 0.6370 0.6504 0.6639

12 months 0.6473 0.6611 0.6747

24 months 0.6866 0.7012 0.7158

36 months 0.7465 0.7623 0.7781

48 months TOP RATE

Those drivers in progression as of the ratification of this Agreement

will maintain a three (3) the four (4) year progression to Top Rate

and be slotted into the above progression rates as set forth in

Article 43, Section 2 (11) of the 2013-2018 NMA but will be paid

the applicable mileage rates as set forth above.

Those drivers in progression as of the ratification of this

Agreement will maintain a three (3) the four (4) year progression

to Top Rate and be slotted into the above progression rates as

set forth in Article 43, Section 2 (11) of the 2013-2018 NMA but

will be paid the applicable mileage rates as set forth above.

(12) Hourly work performed at the beginning or end of a mileage

run shall be paid at the applicable hourly feeder one and one-half

(1 1/2) rate of pay or the applicable premium rate of pay in the

driver’s Supplemental Agreement.

(13) All tractors shall have PrePass technology installed as soon

as practicable, and it shall be maintained in proper working order.

Section 3. Mileage Rates

Premium Service drivers will be paid the cents per mile shown

below for all miles driven. Sleeper teams will receive a two (2)

cents per mile premium on the appropriate mileage rate and will

equally divide the appropriate rate.

The mileage rates set forth below shall be effective on August 1

for each of the specified contract years. The total increases for

each year will result in the following mileage rates:

Single Double Triple

August 2018 0.8442 0.8626 0.8810

August 2019 0.8613 0.8800 0.8988

August 2020 0.8796 0.8987 0.9179

August 2021 0.9001 0.9196 0.9393

August 2022 0.9229 0.9429 0.9631

Top Rate Single Double Triple

2023 1.0148 1.0348 1.0550

2024 1.0320 1.0520 1.0722

2025 1.0492 1.0692 1.0894

2026 1.0721 1.0921 1.1123

2027 1.1237 1.1437 1.1639

Section 4. Joint Premium Service Review Committee

The Employer and the Union agree to establish a Joint Premium

Service Review Committee consisting of four (4) Union

representatives and four (4) Employer representatives. This

Committee shall meet at least quarterly or upon the call of either

the Union Chair (who shall be appointed by the Union General

President) or the Employer Chair.

In the event the Employer proposes to implement either a mileage

layover run, or sleeper team run or a city pair (mileage turn) in

accordance with the provisions of Section 1 above, the run must

first be reviewed and approved by the affected Local Union(s)

Joint Premium Service Review Committee. Such approval

shall not be unreasonably denied. After approval by the Local

Union(s), the accommodation shall be submitted to the Joint

Premium Service

Review Committee for review. The Employer may also submit

the accommodation to the Committee for review in the event

approval is denied by the Local Union(s). No such

accommodation shall be implemented without the approval of the

Parcel & Small Package Division Director or the General

President’s designee. Approval shall not be unreasonably denied.

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The Committee shall also review the Employer’s compliance

with the provisions of this Article and shall report and

recommend improvements or alterations in the implementation

and operation of premium service and sleeper team drivers.

Article 43

Premium Services

Guidelines UPS Mileage

Layover, City Pair and

Sleeper Team Drivers

TEAMSTERS/UNITED PARCEL SERVICE

ARTICLE 43 – PREMIUM SERVICES COMMITTEE

Guidelines for UPS Mileage Layover, City Pair,

and Sleeper Team Drivers

1. No Feeder Driver will be laid off or displaced from the

Feeder Classification as a direct result of the

implementation of a Premium Service Job.

2. If the Employer’s existing Feeder Network can meet the

Employer’s time and service needs, that network will be

used first.

In the event the Employer proposes to implement either

a mileage layover run, or sleeper team run or a city pair

(mileage turn) in accordance with the provisions of

section 1 above, the run must first be reviewed and

approved by the affected Local Union(s) Joint

Premium Service Review Committee. Such approval

shall not be unreasonably denied.

After approval by the Local Union(s), the

accommodation shall be submitted to the Joint Premium

Service Review Committee for review.

The Employer may also submit the accommodation to

the Committee for review in the event approval is denied

by the Local Union(s).

No such accommodation shall be implemented without

the approval of the Package Division Director or the

General President’s designee.

Approval shall not be unreasonably denied.

Any run that has been approved and is changed such

change must be reviewed with the Local Union(s)

involved and approved pursuant to the above

process. Upon the re-optimization of the network, the

Committee shall review the Employer’s compliance

with the provisions of this Article and shall report

and recommend improvements or alterations in the

implementation and operation of all mileage runs,

premium service and sleeper team runs.

City Pair (mileage turn) drivers will be paid by the actual miles

driven between selected UPS locations which are more than 250

miles apart.

City Pair (mileage turn) drivers shall be scheduled for 5 working

days as outlined in the applicable supplement, rider or addendum.

Layover drivers will be paid by the actual miles driven between

selected UPS locations, which are typically more than 500 miles

apart.

Mileage jobs not scheduled to equal ten (10) hours of pay will be

filled in with local hourly feeder work in the following order:

1. Local feeder or CPU/TDP work at origin hub or

center.

2. Shifter work at origin work location.

3. Layover jobs not scheduled to equal ten (10) hours

per day, may be supplemented with an additional

day of work at the regular hourly rate in an effort to

provide forty (40) hours of work weekly. When this

occurs, the layover job will not be subjected to the

requirement of providing hourly work to equal ten

(10) hours of pay.

4. Destination local work will be the last

consideration.

Holidays, personal holiday, paid sick days, funeral leave and jury

duty for city pair (mileage turn), layover and sleeper team drivers

will be paid in accordance with the applicable supplement, rider

or addendum. The layover and sleeper team drivers will be

compensated for no less than forty (40) hours of work in a holiday

workweek.

These holidays will be paid at ten (10) hours straight time pay for

mileage drivers who are scheduled four (4) days a week, ten (10)

hours a day if the holiday falls on a day the employee is normally

scheduled to work. When the holiday falls on a non-scheduled

day, the employee will be paid in accordance with the applicable

supplement, rider or addendum.

When the city pair (mileage turn), layover and sleeper team

drivers are required to work on a holiday, the driver will be paid

at the appropriate holiday rate under the applicable supplement,

rider or addendum.

City pair (mileage turn), layover and sleeper team jobs will be bid

among regular origin feeder jobs as per local procedures and

work rules.

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Jobs not selected in normal top down seniority order will be

assigned from the bottom up as per normal local work rules. As

per Article 43, Section 2(1)(a).

Efforts to pre-connect city pair (mileage turn), layover and

sleeper team driver’s tractor/trailer units at the local origin will

be made at both the start and the finish of the run in a regular

location on the lot.

Pre-trip, post-trip inspection, start and finish shall be part of the

applicable mileage rate.

“It is the intent of the parties to make the driver whole for all

justified delay time, such as waiting for late loads, unscheduled

on-property work, accident delay or on-road equipment

breakdown. Any disputes will be referred to the Joint Premium

Service Committee.” Unless authorized otherwise by

management, delays will commence at the scheduled

departure time.

Unless authorized otherwise by management, delays will

commence at the scheduled departure time.

Mileage drivers are not paid for traffic delays when mileage is

recorded within the delay except as follows:

On major highways, traffic delays will commence when a

mileage driver’s speed is reduced to a complete stop and then the

driver continues to move at a speed less than fifteen (15) miles

per hour. The delay would continue until the tractor reaches a

speed of fifteen (15) miles per hour for at least one (1)

consecutive minute. Traffic delays must be fifteen (15) minutes

or greater and will be paid back to the first minute.

It is understood in extreme traffic delay cases, delay pay will not

be unreasonably denied.

While this section clearly entitles the Team Drivers to be made

whole for all justified delay time such as waiting for late loads

this language applies only to sleeper cab planned runs that have

been awarded through the appropriate applicable supplemental,

rider or addendum provision.

When sleeper team runs require waiting time at the furthest point,

such waiting time may be non-paid, but not to exceed one two

(21) hours.

The driver will be paid from the actual arrival time to the extent

that an early arrival is not the fault of the driver. Each arrival at

the home domicile will reset the furthest point, but in no instance

will a team have more than one (1) unpaid hour total at

furthest points in any one week, except as provided below.

Upon arrival at the furthest point, the Company will have the

option of providing suitable lodging for the duration of any wait

time. Drivers who are provided with lodging will be in a non-pay

status not to exceed eight (8) hours or until placed back on duty

by the Company.

The Company may schedule a maximum of ten percent (10%) of

the total approved network sleeper teams nationwide up to ten

(10) hours in non-pay status at the furthest point. The Company

will not un-necessarily create these types of runs or excessively

schedule these runs in any one (1) Local Union. Also, the

Company must have a specific business purpose to schedule such

a run as well as follow the approval process set forth in the Article

43 Guidelines on any newly created runs as of March 27, 2013.

Waiting time at intermediate stops will be handled in accordance

with the applicable local supplement, rider or addendum.

Delays of fifteen minutes or more will be paid back to the first

minute, at the applicable local hourly feeder rate for both team

drivers and a single person driver that is on a layover run.

“Chain-up” time will be paid to both team drivers and a single

person driver that is on a layover run in the States where it is

required.

City pair (mileage turn), layover and sleeper team drivers will be

paid the applicable feeder hourly rate after a diversion occurs

from the point of leaving the main highway to the facility and

returning to the main highway. Any such re-dispatch will not

displace any bid feeder work.

Mileage Determination:

Sleeper Team drivers shall be paid for the scheduled miles that

they drive, on a point-to-point basis, over the routes driven. The

method of measurement for mileage under this provision will be

Microsoft Streets and Trips mapping or similar successor

software. If an extension or diversion occurs, the drivers would

be paid the scheduled miles using the same methodology as

above.

Fuel and Wash will be handled in the following manner:

There shall be a set fuel/wash allowance of thirty (30) minutes

when a fueling event is scheduled at a non UPS facility or

required in an emergency situation.

However, when sleeper teams are scheduled to fuel/wash at UPS

facilities other than those designated as an intermediate stop,

those stops which utilize a staging area outside of the facility the

fuel/wash delay will start at the point of uncoupling and finish

when re-coupling is completed. If uncoupling and re-coupling is

necessary within a facility, a team will commence being paid

upon entering the facility and finish upon exiting. If uncoupling

is not necessary, teams will be paid a set fuel/wash allowance of

forty (40) minutes.

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Re-route:

A re-route occurs when a sleeper team is taken off their scheduled

path due to weather, road closure, accident, etc. When a team is

re-routed to other comparable roadways, the team’s additional

miles will be compensated at the applicable mileage rate of pay.

If a mileage driver is re-routed to a non-comparable main

highway, he will be paid at the applicable hourly rate of pay.

Extension:

An extension occurs when an exception such as inclement

weather, breakdown, traffic delay, etc. requires a sleeper team to

be extended beyond their furthest point. These miles will be paid

at the regular mileage rate of pay.

Shuttle service to a sanitary hotel and lodging expenses will be

paid for, or provided by, the Employer.

It is understood that supplemental language, regarding

impassable highways, shall continue to apply. If a mileage driver

pulls doubles any part of his/her day, he/she will be paid the

doubles rate for the entire day. Double forty (40) foot trailers will

be categorized the same as triples.

For Sleeper Team Drivers, the greatest number of trailers actually

pulled will be used for compensating all legs from domicile to

return to domicile. Each turn at domicile will reset the trailer

compensation rate.

Applicable wage rates are listed under Article 43 and apply to all

drivers. There is no wage progression for full-time package car

and feeder drivers hired on or prior to August 1

, 1997.

In the event city pair (mileage turn), layover and sleeper team

mileage drivers are offered work on a regular scheduled day off

from his/her workweek, the following shall apply:

1. Mileage drivers who work on their days off shall be paid

the applicable feeder premium rate of pay in his/her

Supplemental Agreement.

2. Mileage drivers scheduled for four (4) runs at ten (10)

hours a day – When the drivers work on the fifth (5

)

punch, such drivers shall be paid the applicable premium

rate of pay in his/her Supplemental Agreement for the

sixth (6

) day of work.

3. Mileage drivers scheduled for four (4) runs at ten (10)

hours a day – When the drivers work on the sixth (6

)

punch, such drivers shall be paid the applicable premium

rate of pay in his/her Supplemental Agreement for the

seventh (7

) day of work.

4. Sleeper team drivers who work on their first (1

)

scheduled day off will be paid at the applicable premium

rate of pay as a sixth (6

) day of work in accordance

with his/her Supplemental Agreement. Any subsequent

days worked thereafter within their scheduled

workweek will be paid as a seventh (7

) day of work in

accordance with his/her Supplemental Agreement.

A premium service layover and sleeper team driver equals in four

(4) days the same benefits as a five (5) day hourly driver.

Hourly work performed at the beginning or end of a mileage run

shall be paid at the applicable hourly feeder one and one-half (1

½) rate of pay or the applicable premium rate of pay in the

driver’s Supplemental Agreement. This would include mileage

runs that may have multiple beginnings and endings at the home

domicile.

Subsistence allowance shall cover the cost of showers; however,

where practical and when possible, UPS may provide a shower at

the destination facility.

The cost of fees for bridges, turnpikes, expressways and weigh

stations shall be paid by the Employer.

Each driver will be issued two (2) sheets, two (2) pillow cases,

and one (1) blanket each year, provided however, that if a driver

requests a replacement set of sheets, pillow cases, and blankets

because of the material being worn out prior to one (1) year, such

request will not be unreasonably denied by UPS. Laundry service

shall be paid by the drivers.

Planned mileage runs must be bid with designated work days and

days off (i.e. four-day runs and five-day runs).

Mileage drivers shall be paid the applicable mileage rate of pay

for all miles driven.

Each sleeper team driver will receive subsistence allowance of

thirty-five dollars ($35.00) forty-five dollars ($45.00) for every

one-thousand (1000) miles driven. Miles driven under one-

thousand (1000) each work week shall be adjusted within a thirty

(30) day period. For example, three-thousand five-hundred

(3,500) miles in a week, five-hundred (500) miles of the total

miles driven will be prorated.

In areas where Sleeper Team jobs are currently running or

implemented in the future, the parties will meet to develop

Sleeper Team Work Rules to address topics not already

covered by the NMA or the Premium Services Guidelines.

Neither party will unreasonably delay the addressing of

Sleeper Team Work Rules.

VACATED SLEEPER POSITION SELECTION

Each Local Union may elect to follow this procedure for the

replacement of the senior driver work assignment or continue the

practice that presently exists in their Local Union area. In the

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event the senior driver (A driver), of a bid team permanently

vacates the team for any reason, the junior driver (B driver), will

become the senior (A driver), for that team for the purpose of

selection of his/her replacement. The selection will be in

accordance with Article 43, Section 2 (1) (a) of the National

Master Agreement.

ARTICLE 44. OVER 70 POUND SERVICE PACKAGE

HANDLING

[No change]

Section 1. On Area Package Handling

No employee shall be required to handle any over 70 pound

packages alone if it is the employee’s good faith belief that such

handling would be a safety hazard to herself or himself

themselves. In such cases, the Employer shall provide whichever

of the following is requested in good faith by the employee in

handling over 70 pound packages:

1. Another bargaining unit employee for assistance, or

2. Appropriate lifting/handling devices, or

3. Another bargaining unit employee and an appropriate lifting/

handling device for handling, pick-up or delivery circumstances

that require both bargaining unit help and an appropriate lifting/

handling device.

4. Smalls bags over 70 pounds will be handled in accordance

with 1 through 3 above. When discovered in the small sort the

bag will be split into two bags.

In all such instances involving package car drivers, where assis-

tance from another bargaining unit employee has been

requested in good faith, both employees will be full-time

employees of the bargaining unit except that air drivers or

helpers, where permitted by the applicable Supplement, may be

used to assist the full-time driver in the delivery and/or pickup

of such overweight packages. On Saturdays, air drivers may be

assisted by another air driver in the delivery and/or pickup of

overweight packages. A helper may be used to assist a driver in

the handling of overweight packages when a helper is already

on the package car in accordance with the terms of the

Supplement, Rider or Addendum.

No employee will be required to solicit or accept customer

assistance if it is the employee’s good faith belief that the

customer is not qualified to help or that such assistance would

be a safety hazard to themselves or the customer.

All new and existing employees who handle packages shall be

provided with periodic training in the recognition and proper

handling of over 70 pound packages.

Items 1 and 2 above will also apply to automotive mechanics

when handling equipment over 70 pounds.

No employee shall be disciplined as a result of following the

provisions of this section.

Section 2. Package Identification

[No change]

Section 3. Inside Package Handling Procedures

[No change]

ARTICLE 45. DURATION

Section 1.

This Agreement shall be in full force and effect from August 1,

202318 to and including July 31, 20283 and shall continue from

year to year thereafter unless written notice of desire to cancel or

terminate the Agreement is served by either party upon the other

at least sixty (60) days prior to the date of expiration.

Section 2.

Where no such cancellation or termination notice is served and

the parties desire to continue said Agreement but also desire to

negotiate changes or revisions in this Agreement, either party

may serve upon the other a notice at least sixty (60) days prior to

July 31, 20283 or July 31st of any subsequent contract year,

advising that such party desires to revise or change terms or

conditions of such Agreement.

Section 3.

Revisions agreed upon or ordered shall be effective as of August 1,

202318 unless otherwise specifically provided. The Employer or

the National Negotiating Committee shall be permitted all legal

or economic recourse to support their requests for revisions if the

parties fail to agree therein.

Section 4.

In the event of an inadvertent failure by either party to give notice

set forth in Sections 1 and 2 of the Article, such party may give

such notice at any time prior to the termination or automatic

renewal date of this Agreement. If a notice is given in accordance

with the provisions of this Section, the expiration date of this

Agreement shall be the sixty-first (61st) day following such

notice.

IN WITNESS WHEREOF the parties hereto have set their hands

and seals this ________day of __, 202318 to be effective as of

7/26/2023

- 49 -

ratification of this Agreement except as to those areas where it

has been otherwise agreed between the parties:

IN WITNESS WHEREOF the undersigned do duly execute the

NATIONAL MASTER UNITED PARCEL SERVICE AGREE-

MENT and Supplemental Agreements, Riders and/or Addenda.

Memorandum of Understanding

[No change]

Memorandum of Understanding

[No change]

Memorandum of Understanding

[No change]

Memorandum of Understanding

[No change]

LETTER OF AGREEMENT

[No change]

Memorandum of Understanding

[No change]

Memorandum of Understanding National Master

Negotiations

The parties agree that a package car driver requesting a fan in the

cab of their vehicle shall make such request through the local

Safety and Health Committee for approval. Any disputes over

installation of a fan shall be referred directly to the Co-Chairs of

the National Safety and Health Committee for resolution. Such

request will not unreasonably be denied.

LETTER OF AGREEMENT

United Parcel Service Inc. (“UPS” or “Company”) and the

Teamsters National UPS Negotiating Committee (Union) agree

to the following in connection with the implementation of Article

34 of the 2018-2023 National Master UPS Agreement (NMA):

The hourly increase in full-time contribution for TeamCare set

forth in Article 34 for 2018, 2019 and 2020 shall be forty-two

cents ($0.42); forty-three cents ($0.43); and forty-five cents

($0.45), instead of fifty cents ($0.50) if TeamCare does not adjust

its dental, life insurance and short-term disability benefits for full-

time employees in the C6 Plan to match these benefits in

TeamCare. This adjustment shall be applied on the effective date

of the NMA.

LETTER OF AGREEMENT

United Parcel Service, Inc. (“UPS” or “Company”) and the

Teamsters UPS National Negotiating Committee (“Union”)

agree to the following in conjunction with the negotiation of

the current National Master Agreement.

1. Part-time employees employed in the Anchorage, Alaska

air gateway shall be entitled to overtime for hours worked in

excess of five (5) hours per day.

2. Employees certified as hazmat responders in accordance

with Article 18, Section 21 shall receive a minimum hourly

premium for all compensated hours of one dollar per hour

($1.00).