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PITTSBURGH - Giant Eagle has reached agreement on a new five-year contract with Teamsters Local 249, which includes scrapping its plans to outsource transportation jobs, the Pittsburgh Post-Gazette reports.
Giant Eagle this summer threatened to outsource the jobs of some 200 Teamster-represented drivers, loaders and mechanics if it did not negotiate a cost-saving contract with the union by Oct. 1, according to the report.
Negotiations led to an agreement that was approved late last week by a vote of 97 to 82, according to drivers who were present.
"The company is very pleased that this contract was successfully ratified and it will result in maintaining very highly paid, good jobs in Pittsburgh," said Dan Shapira, counsel to the company. "This is a very happy occasion."
The agreement also includes some cost-sharing in health-care coverage and pension improvements, Shapira said.
"The whole supermarket industry is under pressure to reduce costs to compete with the large discount houses and this contract enables us to be very competitive," he said.