Dive Brief:
- Members of Teamsters Local 2727, which represents more than 1,400 UPS aircraft mechanics, maintenance inspectors and other similar positions, ratified a contract with UPS, according to a press release from the union.
- The contract includes an immediate 17.7% raise and a 3% annual wage increase over the life of the contract, UPS Spokesperson Jim Mayer told Supply Chain Dive. It will become amendable on Nov. 1, 2023.
- "This agreement is the culmination of over four years of long hours, hard work and dedication from" the Teamsters Local 2727 negotiating committee, Capt. David Bourne, the director of the Teamsters Airline Division, said in a statement. "Their focus on improving the existing agreement and quality of life for our UPS members is what enabled us to ratify this industry-leading contract."
Dive Insight:
"The agreement, which goes into effect immediately, rewards our employees for their contributions to our success, provides flexibility to keep our company strong and capable to meet the increasing expectations of our customers," Mayer said.
He said these mechanics help keep the UPS fleet of 248 aircraft in the air. It is separate from the contract UPS entered with its drivers and package handlers last year.
Kara Deniz, a spokesperson for Teamsters Local 2727, said the negotiations took about five years, and the pay increases will take effect for all of the union's members, which are located in 91 cities across the country.
Teamsters Local 2727 claims this new contract makes UPS air cargo mechanics "the highest-paid air cargo mechanics in the country by a wide margin." This was determined through an economic analysis of wage rates comparing FedEx, Delta, American and others, Deniz said.
The employee's health benefits went unchanged under the new contract, according to Mayer.
The Teamsters and UPS reached a tentative agreement in August, but that version of the deal was rejected in October, according to Louisville Business First.
