|
SUBSEQUENT EVENTS SUBSEQUENT EVENTS (Notes)
|
9 Months Ended |
|---|---|
|
Sep. 30, 2013
|
|
| Subsequent Events [Abstract] | |
| Subsequent Events [Text Block] |
SUBSEQUENT EVENTS
Business Acquisitions
In September 2013, we entered into an agreement to purchase the assets and operations of two Costa Rican-based companies: (1) Union Pak de Costa Rica, S.A., a small package delivery company, and (2) SEISA Brokerage, a customs brokerage company. Both companies have long-standing relationships with UPS as authorized service contractors. We completed the acquisitions in October 2013. The acquisitions of these two companies were not material to our consolidated financial position or results of operations.
Collective Bargaining Agreement Status
On April 25, 2013, we reached a tentative agreement with the Teamsters on two new five-year national master agreements in the U.S. Domestic Package and UPS Freight business units. Subject to ratification by the UPS Teamster-represented employees, the new national master agreements will be retroactively effective as of August 1, 2013. UPS Teamster-represented employees in the U.S. Domestic Package business unit subsequently voted to approve the new national master agreement in June 2013, while several local U.S. Domestic Package supplemental agreements and the national master agreement covering UPS Freight employees require additional negotiation and approval before ratification occurs.
Before expiration of the existing contract on July 31, 2013, the Company and the Teamsters agreed to extensions of both existing five-year national master agreements and all supplemental agreements. The extensions are open-ended and can be terminated by either party on thirty days' notice.
In October 2013, five additional supplemental agreements in the U.S. Domestic Package business unit were approved. As of the end of October, there were a total of eleven supplemental agreements, in addition to the UPS Freight national master agreement, that still have to be approved before ratification. We anticipate that the remaining agreements will be voted upon in the coming months.
As of the date of this filing, there can be no assurance that our efforts will be successful or that the ultimate resolution of these matters will not adversely affect our business, financial position, results of operations or liquidity.
|