• ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
  • ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
Air CargoNewsParcel

UPS, pilots agree on short-term contract extension

UPS (NYSE: UPS) and the union representing its pilots reached a tentative agreement Monday on a two-year contract extension, giving the express carrier operational certainty as it competes against FedEx, DHL, Amazon and other logistics providers.

The short-term agreement includes annual wage increases and improved pension benefits, the Independent Pilots Association (IPA) and Atlanta-based UPS said. The Atlanta-based delivery and logistics company said the deal provides it greater predictability and operational flexibility to meet growing customer demand for global air services.

The contract covers 2,959 crewmembers, who must vote to ratify the deal by March 31. The IPA said contract specifics won’t be disclosed until the the proposal is presented to all UPS pilots. If approved, the contract would go into effect Sept. 1, 2021, when the current pact is scheduled to become amendable.

The last two UPS pilot contracts were for five years. The two-year extension is unique for the IPA, but not for the industry. United Airlines in 2016 reached a two-year contract extension with the Air Line Pilots Association (ALPA). FedEx pilots, also represented by ALPA, agreed to a short-term contract extension in 2011.

The U.S. airline industry is governed by the Railway Labor Act (RLA), which was extended to air transportation in the 1930s. It includes a number of provisions designed to protect the public from work stoppages.

One way the RLA is different from the National Labor Relations Act is that contracts do not have fixed expiration dates. Instead, they can be amended at agreed dates. The terms remain in effect until the parties unite on a new contract. Strikes and lockouts are forbidden until the parties have gone through a lengthy series of steps regulated by the National Mediation Board.

As part of the existing contract, UPS and the union agreed to start negotiating early and the two-year extension is the result.

“Our pilots do a great job flying for our customers, so we’re pleased to have come to an agreement with IPA leaders to extend the existing contract,” said UPS Airlines President Brendan Canavan in a statement.

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Eric Kulisch, Air Cargo Editor

Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com

2 Comments

  1. Quote :

    “UPS (NYSE: UPS) and the union representing its pilots reached a tentative agreement Monday

    The short-term agreement includes annual wage increases and improved pension benefits ”

    What ??? Annual wage increases and improved pension benefits ???

    This is foreign to most truck drivers ! How come ? CAUSE RATHER THAN BEING UNITED THEY CHOOSE TO BE DEVIDED !

    Who is to blame for low truck driver pay ? THEMSELVES !

    The Republican party wants you to be and remain divided , the Democratic party wants you to be UNITED !

    “UNITED” States ! Why aren’t you “UNITED TRUCK DRIVERS” and or “UNITED PEOPLE” ???

    IMHO !

  2. Your “STATES” are not UNITED , they’re DIVIDED !

    State :
    the particular condition that someone or something is in at a specific time.

    I deem thee to be the “DIVIDED STATES OF AMERICA” until proven otherwise .

    SO UNITE AND CARRY YOUR TITLE WITH PRIDE ! GIVE IT MEANING ! TRUCK DRIVER’S UNITED STATES OF AMERICA !

    IMHO !

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