began, many UPS executives felt they could pressure Carey into offering the company's final offer to the Teamster membership and that the members would accept this offer. Carey won a major contract victory on August 18, 1997. Talks had resumed on August 7 but ended two days later. After five days of silence, talks began again on August 14 under the personal supervision of Labor Secretary Herman at the Hyatt Regency Washington hotel across the street from the Teamsters' headquarters. After two days of nearly continuous bargaining, UPS withdrew its pension demand. President Clinton personally spoke to both parties over the weekend to encourage them to continue bargaining, and a final tentative contract emerged on Monday afternoon, August 18. The pact included several major concessions by the employer: Starting pay of part-time workers would increase for the first time since 1982, 10,000 part-time jobs would be converted into full-time jobs, UPS would stay in the union's multi-employer pension plan, most workers would see significant benefit increases, and five-sixths of all new full-time jobs would be filled by existing part-timers. The union agreed to a five-year contract rather than the proposed four-year deal. The company had lost more than $600 million in business during the strike, and fears of even larger losses had finally led it to concede. The 50-person Teamsters bargaining committee and conference of 200 UPS locals ratified the agreement on August 19. The UPS strike was a major boost for Ron Carey. His opponents agreed that he had emerged politically stronger from the battle. Carey quickly announced plans to boost organizing efforts at Federal Express, using the gains won in the UPS contract as a major selling point for the union. Re-election financial scandal and expulsion from Teamsters The donation kickback scheme which led to Carey's eventual expulsion from the Teamsters was created in July 1996. Early internal Carey re-election campaign polls showed Carey losing badly to Hoffa. Hoffa was also out-raising Carey in funds by more than 4-to-1, and the Carey campaign and outside fund-raising consultants were convinced much of Hoffa's funds were coming from organized crime sources. Carey re-election campaign aides, however, were confident Carey could win if he could bypass the local leadership (which supported Hoffa) and get his message directly to Teamsters members. In late July, Carey campaign manager Jere Nash met with Martin Davis, who owned The November Group (a direct-marketing company). Nash