Mediator puts labor talks between UPS, pilots on hold

Mediator puts labor talks between UPS, pilots on hold UPS said the federal mediator in charge of negotiations between the cargo delivery company and the Independent Pilots Association has implemented an indefinite recess in the talks.
   The move comes after the union requested the National Mediation Board release the union from mediation after three years of talks have failed to produce a new contract. The union claims that only $40 million separates the two sides.
   'Our hand has been forced. UPS is engaging in stall and delay tactics. We no longer believe UPS is serious about reaching an agreement. Wall Street and UPS's own shippers share this view,' said IPA President Tom Nicholson in a statement.
   The union is seeking an end to mediation so that it can call a strike.
      Under the Railway Labor Act which governs the negotiations there can be no strike or work stoppage while the talks are in recess. The two sides can continue to talk during the recess period without the mediator.
   'We made progress during talks this week,' said Bob Lekites, vice president of UPS airlines and international operations, in a Dec. 23 statement. 'While the company and the union still have differences to address, UPS remains committed to continue negotiations until an agreement can be reached.'
   The mediator previously recessed talks last June for three months.
   Some wary shippers have indicated that they have made plans to divert freight to other carriers such as FedEx and DHL if the mediator grants the union's request and a 30-day cooling off period begins that could lead to a work stoppage.