UPS, Teamsters reach labor deal on aircraft mechanics contract

5 things to know about UPS 1. UPS was founded in Seattle in 1907 as the American Messenger Company. In 1919, the company became United Parcel Service. 2. In 1991, UPS moved its headquarters to Sandy Springs, Ga., from Greenwich, Conn. Atlanta beat out Dallas and Baltimore, the other HQ site finalists. 3. UPS has 444,000 employees worldwide, delivering 18.3 million packages and documents daily. In 2015, UPS delivered 4.7 billion packages and documents total. 4. UPS boasts 9.8 million customers, serves over

The International Brotherhood of Teamsters said it has reached a labor deal with UPS covering the shipping giant's aircraft mechanics.

The tentative agreement between Teamsters Local 2727 and Sandy Springs-based UPS brings an end to contentious negotiations over four years of bargaining.

If approved by the 1,300 aircraft mechanics at UPS, the union said it will bring them immediate 16 percent pay raises and 3 percent raises each year, along with retroactive pay.

The raises will make them "the highest paid aviation mechanics in the country" with rates and benefits better than those at FedEx and other major U.S. carriers, including a health care package with no premiums, according to the Teamsters.

“UPS aircraft mechanics went for years without a raise and we’ve worried long enough about the future of our medical care, said Jack Chatburn, an aircraft mechanic on the bargaining committee, in a written statement.

The union said its members will vote on the new deal in coming weeks.

UPS said it believes the proposed contract “meets the needs of our employees and the business by rewarding employees with industry leading pay and benefits, while also providing enhanced flexibility, positioning UPS to meet customer needs, while also addressing competitor challenges.