UPS and Pilots Announce New Contract

The Independent Pilots Association (IPA), representing UPS pilots, and UPS Airlines announced a tentative agreement in contract negotiations.

The labor agreement provides wage and pension improvements and a variety of changes in work rules, according to UPS. Specific details of the agreement will not be released before the IPA presents the contract to pilots. A majority of UPS’ 2,700 pilots must ratify the contract, which would not become amendable until 2011.

“We have negotiated a fair and balanced contract that’s good for our pilots and good for the company,” said John Beystehner, UPS COO and president of UPS Airlines. IPA leadership endorsed the contract saying it is “one we will present to our membership for ratification without hesitation,” according to Tom Nicholson, IPA president.

Both leaders commended the National Mediation Board for its guidance during negotiations. The two sides have been in negotiations since the prior contract expired in 2002. Separately, UPS faces negotiations with the International Brotherhood of Teamsters (IBT) in its ground operations. Most recently, UPS and the IBT announced they had agreed to enter early contract negotiations on the 2008 National Master United Parcel Service Agreement (Early Contract Negotiations At UPS – Logistics Today e-newsletter July 3, 2006)

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