UPS, Pilots Agree to New Tentative Five-Year Labor Contract
June 30 2016 - 1:30PM
Dow Jones News
United Parcel Service Inc. and its pilots have agreed to a new
tentative five-year labor contract, ending nearly five years of
negotiations.
The Independent Pilots Association, which represents UPS's more
than 2,500 pilots, and the delivery giant aren't releasing details
of the arrangement, although they said it provides for
"improvements across all sections of the contract."
Sticking points until now included work rules, specifically to
avoid fatigue. The pilots wanted more time to rest between flights,
with rules closer to what the Federal Aviation Administration has
mandated for airline pilots.
The union said it would recommend the new contract to its
members. The contract must be ratified by a majority of the pilots
in a vote completed by the end of August. If approved, the contract
would become effective on Sept. 1.
The union had threatened it might strike if the two sides
reached an impasse and federal mediators released it from
negotiations, something that would have disrupted UPS's global
package delivery network. UPS last faced a strike in 1997, when its
Teamsters employees walked off the job for a little more than two
weeks, costing the company an estimated $600 million.
Still, both analysts and industry experts had expected the two
sides would likely come to an agreement.
Write to Laura Stevens at laura.stevens@wsj.com
(END) Dow Jones Newswires
June 30, 2016 13:15 ET (17:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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