In what UPS (NYSE:UPS) CEO Scott Davis calls "a win-win-win for our people, customers, and shareholders," the company has reached a "tentative agreement" with nearly 250,000 Teamsters Union employees on two five-year contracts. The first deal addresses union employees in UPS' packaging unit; the other agreement impacts freight employees, the sides recently announced.

According to the Teamsters announcement, both agreements will "protect [union members'] health-care benefits, provide substantial wage increases and significantly raise contributions to pension and health and welfare benefits." The deals would affect UPS' 140,000 package employees, and the nearly 110,000 Teamsters Union employees in its freight unit.

In addition to the health-care benefits and higher wages, Teamsters said the new agreement would result in 2,000 full-time jobs from the ranks of existing UPS part-time package employees.

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