After weeks of pressure from gay-rights advocates, United Parcel Service announced July 30 that it would grant healthcare benefits to all civil-union partners of their union employees in New Jersey.

UPS had been criticized for denying civil-union benefits to union employees in New Jersey because the company believed that the state’s civil-union laws did not allow them to interpret civil unions as equal to marriage.

Conversely, UPS had granted benefits to same-sex partners of unionized workers in Massachusetts, where gay marriage is legal, and to same-sex partners of its non-union employees throughout the United States.

New Jersey Gov. Jon S. Corzine sent a letter to UPS on July 20, explaining that the civil-union statute “intends that civil-union partners be viewed as spouses under all facets of New Jersey law” and urged the company to grant benefits to the civil-union partners of union employees in New Jersey. UPS was also facing legal action to change its policy from Lambda Legal, which is representing two UPS union employees who were denied benefits for their partners.

At the time, representatives from UPS disagreed with the assertions of the governor and Lambda Legal, claiming that the union contracts, which expire in 2008, would not allow the company to voluntarily change the health benefits for better or worse without collective bargaining with the Teamsters.

“Based on an initial legal review when New Jersey’s law was enacted, it did not appear that a ‘civil union’ and ‘marriage’ were equivalent,” said Allen Hill, UPS senior vice president for human resources, in a statement. “Over the past week, however, we have received clear guidance that, at least in New Jersey, the state truly views civil-union partners as married. We’ve heard that loud and clear from state officials and we’re happy to make this change.”

UPS officials said the extension of benefits to civil-union partners of hourly employees in New Jersey will affect approximately 8,700 workers, but they did not know how many of those employees were joined in civil unions.

Company officials also said they intend to address the issue of same-sex benefits for all of UPS’ hourly workers, regardless of where they live, when the company meets with the Teamsters to negotiate a new contract in 2008.

“Our goal has always been to provide these benefits to all UPS employees,” Hill said. “But we also have a responsibility to do it the right way.”

Lambda Legal applauded UPS’ decision to change its policy.

“We are pleased to see that UPS has decided to do the right thing in the end and provide benefits to the same-sex civil-union partners and families of its employees in New Jersey,” said David S. Buckel, Marriage Project director of Lambda Legal.

Others see the dispute with UPS as a sign of a greater problem stemming from the inequities of New Jersey’s civil-union laws.

“The torture that UPS put this one couple through, before the company finally relented and gave the couple benefits, shows how pathetic the law is,” said Steven Goldstein, chair of Garden State Equality, a New Jersey-based GLBT-advocacy group. “Many companies don’t understand the civil-unions law, and many other companies understand the law but don’t respect it. Either way, the law is an abject failure in consistently providing same-sex couples equal protection.”

Goldstein points out that other companies in New Jersey might not be as flexible as UPS in their policies.

“What will happen to the employees who work for the many other companies, like Fed Ex and DHL, that won’t cave in?” he posed. “How many of these couples and their children will have to suffer before the New Jersey Legislature corrects the epidemic of inequality that the civil-unions law has created? Marriage is the only currency of commitment the real world universally accepts. Marriage is the only way same-sex couples in New Jersey will ever receive equality.”

A spokesperson for Corzine said that while the governor was sympathetic to Garden State Equality wanting New Jersey’s laws to move toward marriage for gay couples, he disagreed that civil-union laws are flawed, saying the language of the law makes it clear that civil unions are to be treated as equal to marriage.

“The intent of the law is to provide all the rights that come along with a marriage,” said Brendan Gilfillan. “That’s ultimately what UPS realized.”

Gilfillan also said that the governor’s office is willing to address those companies that do not treat civil unions the same as marriage.

“Obviously we’ll have to take those in a case-by-case basis,” he said. “What we hope is that people will see this case and follow UPS’ example and we’ll be able to avoid these types of situations in the future.”

Garden State Equality reported that it has received 191 complaints from couples whose employers refused to provide them with benefits following their civil unions.

Larry Nichols can be reached at larry@epgn.com.