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UPS forced to add FT jobs
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February 16, 2000: 8:26 p.m. ET
Arbitrator, in strike aftermath, says delivery giant must create 2,000 jobs
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NEW YORK (CNNfn) - An independent arbitrator ruled late Wednesday that United Parcel Service Inc., the parcel-delivery company, must create 2,000 new full-time jobs under its 1997 Teamsters union contract, concluded after a strike that put a strain on the nation's economy.
Independent arbitrator George Nicolau ruled that a drop-off in delivery volume, caused by the 1997 strike, was not enough to trigger a clause in the contract that would allow UPS to cancel plans to convert 2,000 part-time jobs into full-time positions.
The contract called for UPS to create of 10,000 new full-time positions over five years. However, if UPS was found to have suffered any drop-off in delivery volumes as a result of the strike during the first year after the labor action, the company would not be required to add 2,000 new jobs for that first year.
Atlanta-based UPS said it is committed to the arbitration process and is prepared to begin creating the new jobs. The company said it plans to meet with Teamsters officials to determine the next appropriate steps, and also to discuss the issue of full-time jobs under year two of the agreement.
Nicolau ordered the jobs be created within 90 days, and also required the company to pay back wages with benefits valued at more than $80 million, which the Teamsters said in a statement was the largest award in its history.
Shares of UPS (UPS: Research, Estimates), which went public last year, rose 1-1/16 to 56 Wednesday ahead of the announcement. 
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