Teamsters aircraft mechanics and other U.S. workers at United Parcel Service's in-house airline ratified a five-year contract this week.
UPS and the unionized mechanics and U.S. workers reached a tentative agreement on the contract Sept. 10. The contract was ratified with 65 percent of members voting in favor. Turnout was high, as 90 percent of the 1,200 mechanics took part in the ratification vote.
“Teamster aircraft mechanics throughout the industry are the best in the business, and this new contract proves that,” said James P. Hoffa, Teamsters general president. “The power of Teamster unity has paid enormous dividends for all of our members at UPS.”
The contract, which runs through Nov. 1, 2006, is retroactive to Aug. 1, 2001. It covers 1,140 aircraft mechanics, flight simulator technicians, utility workers and maintenance controllers working for UPS Airlines, which is based in Louisville, KY, and has a 250-aircraft fleet.
Negotiations had been ongoing since the previous contract became amendable Aug. 1, 2001. As a result, wage increases in the new contract are 100 percent retroactive. Other contract details include:
· Wage increases of $12.33 per hour, or 40.2 percent, over the life of the agreement.
· Pension contributions of 13 percent of weekly pay by the employer.
· A separate 401(k) plan with a 3 percent company match.
· UPS employees represented by the Teamsters recently approved a new contract negotiated in July. That agreement calls for a 22 percent wage increase over six years for 230,000 UPS workers and provides the largest wage and benefit increase in UPS history.