UPS and the Teamsters union said they have temporarily suspended contract talks, citing differences on pensions and benefi ts. The two had entered into early negotiations for renewal of their current contract, whichis set to expire next year.

The Teamsters said UPS"has been unable to presenta comprehensive responseto the union’s economicdemands because of differencesbetween the companyand several benefi t funds overthe amount of new companymoney that is necessary tomaintain and improve existingbenefi ts."

UPS spokesman Norman Black said, "The talks between the two main negotiating committees on the national master contract have been temporarily recessed while UPS works to obtain some additional information from union pension funds."

The contract is for parcel workers. Separately, the two are working on a contract for the Indianapolis terminal of UPS Freight, the former Overnite Corp. unit acquired by UPS in 2005 and renamed as UPS Freight last year.