CNBC: UPS cuts margin and revenue forecasts as new labor contract weighs

CNBC reports: 

United Parcel Service on Tuesday cut its full-year revenue and margin forecasts and its shares fell 5.1% in premarket trading, as the world’s largest delivery company expects a hit to volumes from a new labor contract.

The company agreed to end forced overtime for drivers and decided to limit seasonal work for part-timers to five weeks from November-December in a tentative five-year contract with the Teamsters union last month.

The contract for 340,000 U.S. workers has to be ratified by employees. It includes wage hikes, another paid holiday, end to a two-tier wage system for drivers and air conditioning to new models of the company’s trucks…

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Stock down -5.3% to $172.5 in pre-market trade.