(Reuters) -United Parcel Service ( UPS ) on Tuesday appointed longtime insider Brian Dykes as its new finance chief, effective immediately.

Dykes, who has worked at UPS for more than 25 years, succeeds Brian Newman, who departed the company on June 1.

The change at the world's biggest parcel delivery firm comes at a time when it is grappling with higher labor costs linked to its new Teamsters contract.

Earlier this year, the Atlanta-based UPS had also won the U.S. Postal Service (USPS) air cargo contract replacing FedEx.