United Parcel Service (NYSE: UPS) outlined the financial impact of its new labor deal, and investors are a little spooked by the added expense. Shares of UPS fell as much as 3% after the company detailed its new agreement with the Teamsters union.

All eyes were on UPS this summer as the company scrambled to avoid a strike that would have severely disrupted operations. UPS and the Teamsters did eventually reach a deal ahead of the deadline, but it came at a steep price to the company.

On Tuesday, UPS updated investors on the exact cost of the new arrangement. The company said that wages and benefits would increase by an average of 3.3% annually over the five-year deal, with a significant portion of those gains coming in year one.

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Source Fool.com