July 25, 2005: In late June the Independent Pilots Association issued UPS an ultimatum: come up with a final contract offer or face a strike. Management has dragged its feet on reaching an agreement, now into their fourth year of bargaining.
Management did come across with an agreement, which will now be put to a vote of the 2,500 pilots. Not all terms of the contract have been released. Pay for UPS pilots has lagged behind other cargo airlines. FedEx pay has been slightly better and pay at some cargo airlines is nearly $50 per hour more. The UPS pilots have also been concerned about benefits and protections from loss of work to nonunion operations.
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