UPS, pilots union reach tentative deal on five-year labor contract
After more than two years of negotiating, UPS Airlines and its pilot union have reached a tentative agreement on a new five-year labor contract. UPS and the Independent Pilots Association announced the agreement in a press release Thursday, but they did not disclose specifics of the deal.
UPS and the Independent Pilots Association announced the agreement in a press release Thursday.
They did disclose the specifics of the contract, which needs to be ratified by a majority vote of the pilots union’s 2,600 members.
“The comprehensive agreement provides for improvements across all sections of the contract,” the parties said in the release.
Atlanta-based UPS has its Worldport global air hub at Louisville International Airport, and about 1,700 of the pilots union’s 2,600 members are based in Louisville.
The union’s last contract with UPS ran through Dec. 31, 2011 and the two sides had been trying to reach a new labor agreement since.
In March 2014, the talks moved to mediation before the National Mediation Board, a U.S. government agency.
Sticking points included wages, healthcare, pensions and flight scheduling, among other issues.
The average UPS pilot covered by the labor contract earns $238,000 annually, UPS said last year. Captains, who rank higher than first officers, are guaranteed $255,128 and typically earn about $290,000, according to UPS.
The ratification vote on the new contract will be completed by Aug. 31, according to the news release.
The contract would run from Sept. 1, 2016 to Sep. 1, 2021.
“This tentative agreement has been unanimously approved and endorsed by both the IPA Executive Board and our Negotiating Committee. Over the next month we will present it to our members with an unqualified recommendation for ratification,” Capt. Robert Travis, the pilots union president, said in the news release.
UPS Airlines President Brendan Canavan said the contract represents an "excellent offer."
“This contract rewards our crewmembers for their outstanding contributions and contains provisions that protect UPS’s ability to deliver competitive service to our global customers,” he said in the release.
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