Now that James P. Hoffa has been re-elected president of the International Brotherhood of Teamsters, he's expected to make the negotiation of a new labor contract with United Parcel Service (UPS) his first order of business this year.

In November, Hoffa, the son of the legendary Teamsters leader Jimmy Hoffa, beat his challenger, Tom Leedham, to win a second term. During the election campaign, Hoffa served notice that he would set a tough stance in bargaining with UPS. "We will do whatever it takes to win a strong contract," said the Teamsters president.

The stakes are high for both sides: Five years ago, an impasse at the bargaining table led to a two-week strike that drove many shippers away from the giant parcel and express carrier. Since then, Atlanta-based UPS has had to work hard to win back its shipper customers.

The current pact between the union and UPS pays UPS package drivers $23.11 per hour. UPS spokesman John Flick says that UPS drivers are paid more than their counterparts at FedEx or the U.S. Postal Service.

During the last round of negotiations five years ago, however, wages weren't the main stumbling block. Instead, the sticking point was the number of part-time workers employed by UPS. The Teamsters union sought to upgrade many of those jobs to full-time status, and UPS agreed to create 10,000 new full-time jobs during the life of the contract. According to Teamsters representative Brian Rainville, the union had to bring UPS to arbitration to enforce those terms.

At present, the Teamsters are canvassing their members as to what the union's key concerns should be at the bargaining table. Bill Lichtenwald, director of the Teamsters Parcel and Small Package Division, has said that one of the big concerns for rank-and-file members is "coming up with stronger grievance-procedure language for discharges and suspensions." Other concerns include curtailing mandatory overtime for package-car drivers and boosting job protections.

Flick of UPS says his company does not expect acrimonious negotiations this time around. "We are dealing in a different time," says Flick. "The gentleman in charge is much more understanding of the issues. Mr. Hoffa ... [is] a realist."

Flick says his company will press for a balanced agreement that's fair to employees while giving UPS the flexibility to compete in the package-delivery marketplace. "Yes, we want a fair and equitable package, but don't tie our hands in what we offer customers," he says. "Customers today have other options."

Talks between the two parties are expected to begin in late spring. The current contract expires on July 31.