IPA, UPS issue statement on move to mediation

UPS and the Independent Pilots Association (IPA), which represents the approximately 2,500 pilots who fly for UPS, announce the following:

The company and union have been in direct negotiations for a new pilot labor agreement since October 2002.

Since commencing negotiations, the parties requested and have been provided the bargaining facilitation services of the National Mediation Board (NMB) using the principles of Interest-Based Bargaining (IBB).

Both UPS and the IPA congratulate the NMB for providing an unprecedented level of involvement and assistance to the parties using IBB. The parties have greatly benefited from the invaluable guidance and experience of NMB staff mediators Linda Puchala and John Livingood.

The UPS/IPA pilot collective bargaining agreement became amendable Dec. 31, 2003. The pilot labor agreement is covered by the Railway Labor Act (RLA) and does not expire until the negotiation processes of the RLA are exhausted. First in October 2003 and then in March 2004, the parties agreed to continue direct negotiations utilizing the IBB process until July 1, 2004.

Although the parties have utilized their best efforts over the past 22 months, no agreement has yet been reached in the contract areas of scheduling, compensation, pension, scope and benefits.

At this time, the parties believe the next logical step in reaching an agreement is to jointly request the mediation services of the National Mediation Board.

Both in 1991 and 1998, the IPA and UPS reached agreement for a new pilot contract during mediation supervised by the NMB.

The parties are committed to continuing to bargain in good faith and continuing to work with each other and the NMB to reach agreement on the substantial issues that remain unresolved.