HOW DOES IT HELP >> NO MIC DROP HERE. IT'S LIKE RECESSIONS WE ONLY KNOW WHEN WE'RE WELL PAST IT. I WANT TO HIT ON BIG NEWS THAT HAPPENED BEFORE WE STARTED HERE ON THE AIR ON U.P.S. FRANK HOLLAND WILL JOIN US NOW WITH THE DETAILS WHAT'S GOING ON HERE, FRANK? IT LOOKS LIKE CRISIS AVERTED >> CERTAINLY SOME BIG NEWS SHARES JUMPING 2% ON THE NEWS WITH A TENTATIVE DEAL WITH THE TEAMSTER OFF THOSE HIGHS NOW. FEDEX DIPPING INTO NEGATIVE TERRITORY FRACTIONALLY AFTER THAT NEWS BROKE. HERE ARE THE BONES OF THIS NEWS. THE DEAL PREVENTS THE 340,000 TEAMSTERS WORKERS AT U.P.S. FROM A POTENTIAL STRIKE THAT WOULD HAVE COST THE U.S. ECONOMY AN ESTIMATED $7 BILLION THE TEAMSTERS WOULD HAVE HAD THE OPTION TO STRIKE ON AUGUST 1 BUT, AGAIN, IT APPEARS THAT'S BEEN AVERTED I HAVE TO SAY APPEARS, COURTNEY, BECAUSE YESTERDAY WE SAW A TENTATIVE DEAL WITH THE FEDEX PILOTS BOTH SIDES ANNOUNCED A TENTATIVE DEAL CERTAINLY NOT AS URGENT AS THIS ONE. BOTH SIDES ARE NOW CALLING THIS A WIN-WIN AGREEMENT. THIS WAS A STATEMENT FROM THE CEO, CAROL TOME. TOGETHER WE REACHED A WIN-WIN-WIN AGREEMENT ON THE ISSUES THAT ARE IMPORTANT TO TEAMSTERS LEADERSHIP, OUR EMPLOYEES AND TO U.P.S. AND OUR CUSTOMERS. WITH INDUSTRY LEADING PAY AND BENEFITS RETAINING THE FLEXIBILITY TO STAY COMPETITIVE, SERVE OUR CUSTOMERS AND KEEP OUR BUSINESS STRONG. THERE WAS A RELEASE FROM THE TEAMSTERS. U.P.S. SAYS IT CAN'T CONFIRM OR DENY THE NUMBERS IT CAN TALK ABOUT THE FINANCIALS OF THE DEAL UNTIL THE EARNINGS REPORT IN AUGUST THIS IS FROM THE TEAMSTERS THEY SAY $30 BILLION OF NEW MONEY THROUGHOUT THE LENGTH OF THE CONTRACT, EXISTING FULL AND PART-TIME WORKERS $2.75 MORE PER HOUR THIS YEAR AND THEN THROUGHOUT THE LENGTH OF THE CONTRACT $7.50 PER HOUR MORE OVER THE LENGTH OF THE CONTRACT. A REALLY BIG STICKING POINT. PAY FOR PART-TIME WORKERS BUMPED UP TO $21 PER HOUR TEAMSTERS SAYING DELIVERY DRIVERS WHO ARE U.P.S. TEAMSTERS WILL GET $49 PER HOUR. INDUSTRY LEADI ING PAY WHEN IT COMES TO THAT HOUR NOT ONLY IS THE CONTRACT BEING SETTLED, OPERATIONS NOT DISRUPTED, BUT THE COST OF LABOR AT U.P.S. CHANGING SIGNIFICANTLY IF THIS DEAL IS RATIFIED >> THOSE NUMBERS ARE ACTUALLY PRETTY EYE OPENING $49 IS SURPRISING TO ME. >> IT'S A GOOD JOB BOTH SIDES AGREED IT'S A GOOD JOB. QUESTIONS ABOUT THE LONG-TERM PAY STRUCTURE, THE PAY FOR PART-TIME AND AIR CONDITIONING IN THE SUMMER, HEAT IN THE WINTER, THINGS LIKE THAT COMPENSATION WAS REALLY THE STICKING POINT IT APPEARED IT WAS GOING TO COME DOWN TO THE WIRE ON THE PART-TIME PAY. $21 PER HOUR FOR PART-TIME WORKERS. >> INTERESTING STUFF, FRANK. STEPHANIE, YOU OWN U.P.S IF THESE END UP TO BE TRUE, U.P.S. IS NOT GOING TO CONFIRM THEM THROUGH EARNINGS, HOW DOES IT MAKE YOU FEEL >> IT WAS AN OVERHANG ON THE STOCK. THE REASON THE STOCK IS UP 8% AND FEDEX IS UP. IT'S A REMOVAL OF AN OVERHANG. AND THEN SOME TAKES FROM FRANK'S GREAT REPORTING, $6 BILLION A YEAR, IF THAT'S, IN FACT, THE NUMBER, PEOPLE WERE EXPECTING $5 BILLION A YEAR IT'S A LITTLE BIT HIGHER PART-TIME WORKERS AT $21 AN HOUR, PEOPLE WERE EXPECTING $25 AN HOUR. SO IT'S A WIN-WIN ON BOTH SIDES BUT I THINK MORE IMPORTANTLY IT IS AN OVERHANG LIFTED, THE STOCK IS NOT EXPENSIVE FEDEX IS MORE EXPENSIVE THAN U.P.S. WHICH HAS NOT EVER BEEN THE CASE FEDEX IS A DIFFERENT STORY RESTRUCTURING. U.P.S. SHOULD PLAY CATCH-UP. DEMAND IS STILL THERE. >> I WANT TO GET JASON IN BECAUSE YOU OWN FEDEX. >> FOR ME, AS STEPH MENTIONED, THE STOCK HAS BEEN A REALLY SIGNIFICANT WINNER THIS YEAR UP 47% THIS YEAR BUT LAST YEAR WAS A VERY DIFFICULT YEAR. FOR
