On eve of strike vote, UPS pilots get Teamsters support

Earlier this week, FedEx union pilots represented by the Air Line Pilots Association (ALPA) signed a new contract with FedEx management, which takes effect in November and becomes amendable in 2021.

As for its chief competitor, UPS, though, things are not as harmonious, with the Independent Pilots Association (IPA), the trade union representing UPS pilots recently saying leadership called on its 2,528 members to authorize a pilot strike against UPS. It said that if this gets membership approval, the IPA’s five-member executive board would be able to request a release from federally-mediated negotiations with UPS. Results of this vote will be announced October 23.

What’s more, leadership at the International Brotherhood of Teamsters said today that General President James Hoffa and General Secretary-Treasurer Ken Hall told the IPA’s President Captain Robert Travis in a letter that “if a strike is necessary, we will not cross your lines, but will stand with you on them.”

Hoffa and Hall added deemed it “unacceptable” that it has taken four years to negotiate a collective bargaining agreement and stressed that the IPA has the Teamsters’ support regardless of the outcome of tomorrow’s vote, whose results will be announced at 10:30 a.m. ET. A Teamsters’ statement said that if the vote is approved, the five-pilot IPA Executive Board will have the authority to formally request a release from federally mediated negotiations with UPS and the discretion to conduct a strike upon completion of mediation.

While the Teamsters have made its support of UPS IPA members clear, UPS officials told LM that the company continues to negotiate in good faith for a win-win contract.

“We want a contract that’s good for our employees, our customers and the company,” a company spokesman told LM. “We have every reason to believe we’ll arrive at such an agreement, just as we have in all four previous UPS-IPA negotiations. As evidenced by the negotiation dates the NMB (National Mediation Board) has scheduled in November and December, talks continue to progress. Since we’re still at the table under NMB supervision, there’s no merit to any talk of a job action. It’s important to understand that airline contracts talks often take years to complete because of the complexity of the agreements and the safeguards of the Railway Labor Act (RLA, the US labor law that governs airline negotiations).”

Tomorrow’s vote, added UPS, is a symbolic gesture in that under the RLA, the NMB controls negotiations, and a strike is not possible without the NMB’s permission, and then only after exhausting a lengthy series of safeguards.

And it pointed out that strike authorization votes are a common tactic in airline negotiations, with pilots’ unions, going back to 2000 having held approximately 20 authorization votes with an average approval rate of 97 percent.

“Don’t be surprised when the IPA’s vote comes back in the vicinity of that number,” the UPS spokesman said. “These votes are scripted and procedural in nature.”

Meanwhile, UPS made it clear things remain business as usual, saying that as it heads into the busy Peak Season, UPS customers “can rest assured their shipments are in good hands. UPS Airlines continues to operate a safe, on-time air express network. Any discussion of holiday disruptions is negotiations posturing.”

UPS also outlined various benefits and compensation it provides its pilots, including:
-UPS captains are guaranteed, at minimum, $255,128 per year, and they typically earn about $35,000 more. By comparison, the next highest-paid captains (at FedEx) earn $230,379 at guarantee. The average pay for all UPS pilots, including both captains and first officers, is $238,000
-a typical UPS crewmember works about 10 days a month and flies about half of what a typical passenger pilot flies;
-UPS crewmembers enjoy two company-funded retirement plans in addition to a traditional 401(k): a defined benefit plan (traditional pension), and a defined contribution plan; and
-they are covered by a comprehensive health insurance plan with an annual contribution that costs a third less than what a typical U.S. family, with far lower income, pays

An industry observer termed this action by the Teamsters as being predictable, being on the heels of the ratification of the FedEx pilots contract, with the UPS pilots keen on leveraging that to get their fair share.

“It’s hard for the American public and UPS customers to empathize with guys that make over $100,000 a year, have incredible benefits and work limited and regulated hours each month,” he said.

“But they [stir things up] right before the holiday surge to intimidate the UPS management and to drive more customers over to FedEx and the USPS. The process prevents a strike so all this is show business.”