UPS says deal with Teamsters possible by Monday

CHICAGO (Reuters) - United Parcel Service Inc (UPS.N) said on Saturday it may reach an agreement with its unionized U.S. drivers as early as Monday.

"The Teamsters have set a goal of completing the talks and getting a tentative agreement by Monday," said Norman Black, UPS spokesman. "We do believe it's possible that we will be done by then."

UPS, the world's largest package delivery company, and the International Brotherhood of Teamsters have been in negotiations since Monday in Chicago and talked further on Saturday, Black said.

Pension security for employees is one of the items under discussion, he said.

"I cannot go into any details about the specifics of the proposals," Black said.

UPS and the union representing some 250,000 workers kicked off negotiations in September 2006 for a new deal to replace a six-year contract set to expire in August 2008. That contract is the largest labour pact in the U.S. private sector.

UPS Chief Executive Mike Eskew told analysts earlier this year he was optimistic on reaching a deal by the end of 2007.