TO: UPS Package Local Unions

FROM: Ken Hall, Union Co-Chair

DATE: March 28, 2013

Today we concluded another week of negotiations with UPS. Several of the open supplements made significant progress.

In national negotiations, we focused on healthcare. Today the Company proposed moving all employees that are currently in the Company health insurance plan into a Union plan.

Because this issue is so important, we are taking the next two weeks to evaluate the proposal and discuss the issue internally.

We have told the Company we are prepared to meet the weeks of April 15th and April 22nd, provided the Company is prepared to reach an Agreement acceptable to our members during those two weeks.