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A tentative settlement has been reached between UPS and 3,800 workers in Canada, who walked off the job Monday, interrupting shipments.

The proposed six-year contract -- announced by UPS -- came just after the pilots' union at United Parcel Service said it would honor picket lines in the United States if the Teamsters union tried to block goods coming out of Canada.

The Independent Pilots Association claimed UPS had moved management pilots into Canada from the United States in an attempt to break the strike by having non-union pilots fly goods out of Canada.

UPS denied making such a move.

Mississauga, Ont.-based UPS Canada said service was resuming across Canada after a settlement was reached with the Canadian Council of Teamsters.

After five months of talks, the Canadian union leadership and UPS management had previously agreed on a tentative contract. But union members rejected the deal and late last week the Teamsters gave the company a 72-hour notification of a work stoppage.

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