UPS Says Union Labor Deal Boosts Wages, Benefits by 3.3% a Year

United Parcel Service Inc.’s union labor deal will boost the cost of wages and benefits by an average of 3.3% over five years, with the biggest increase coming in the first year.

Wages will jump about 10% in year one of the five-year contract, which took effect Aug. 1. The company, which released its details about the contract for the first time on Monday, will absorb 46% of the deal’s total cost in the first year of the deal. Wage gains will be smaller in the subsequent years.

The costs include adjustments to pension and health benefits and other ...