UPS pilots and company resume contract talks, enlist federal mediator

UPS pilots and company resume contract talks, enlist federal mediator

UPS pilots and company resume contract talks, enlist federal mediator

A month after the fiery crash of a UPS cargo jet in Kentucky, negotiators for UPS pilots and the company have restarted negotiations on a new contract with help for the first time from federal mediators.

The talks are taking place as hundreds of UPS (NYSE: UPS) and FedEx (NYSE: FDX) pilots remain idle following the indefinite grounding by aviation authorities of more than 60 MD-11 freighters in the companies’ combined fleets.

The National Transportation Safety Board found fatigue cracks in a structural support for the engine that fell off the left wing on UPS Flight 2976 during takeoff. Boeing has since indicated the MD-11 inspection process and potential repairs could last months, according to publicly released internal communications and actions by affected airlines.

Pilots at UPS, as well as FedEx, say they deserve better pay and benefits after enabling the companies to move freight during the disruptive Covid years and maintain profit growth while their counterparts at passenger airlines secured historic compensation packages.

The first round of negotiations with a federal mediator took place this week via video conferencing, said Brian Gaudet, a spokesman for the Independent Pilots Association. In-person talks will move to Boston, where federal mediator Kevin Barry lives, in January.

The National Mediation Board in September agreed to facilitate talks between UPS and the IPA, which represents 3,500 UPS pilots, after the parties were unable to make substantial progress on a new contract over 18 months, said IPA President Bob Travis in a phone interview last month. Discussions were delayed by the 43-day government shutdown.

UPS pilots agreed in 2022 to extend their contract an extra two years, primarily to give the Teamsters union space to negotiate a contract for 340,000 ground workers. The pilot contract became eligible to be amended on Sept. 1.

“UPS made some of the largest historic profits in their history during COVID, and our pilots’ expectation is that we receive nothing less than those passenger counterparts made in their contract gains. Our pilots have patiently waited to get a new contract, and UPS has not delivered yet,” Travis said. “They need to reward this pilot group for the contributions we’re making to their bottom line.”

The pilot group at UPS continues to grow because of the one-year-old transport contract with the U.S. Postal Service and overall market strength, the union chief noted. Three years ago UPS employed 3,200 pilots.

UPS profit growth has been halved since halcyon days of the pandemic. The company had net income of $6.7 billion and $5.8 billion, respectively, over the previous two years. It posted a $3.8 billion net profit for the first three quarters of 2025.

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