Some 1,300 aircraft mechanics and related employees are set for a big pay rise totalling nearly 31% over five years under an agreement hammered out with UPS after years of talks and a strike threat.
The Teamsters Local 2727 announced yesterday it had secured “significant raises in pay, improved retirement security and the protection of health care benefits” in a new tentative agreement reached with the shipping company and which union members will vote on in the next few weeks.
The tentative agreement includes “dramatic” increases in pay for all mechanics and related employees, including an immediate 16% pay increase and then 3% increases each year, resulting in an overall 30.7% increase in pay from current rates by the end of the contract.
In addition, there will be retroactive pay for all hours worked from November 1, 2013 (the day the current contract first became amendable) to the date of ratification; protection of an unparalleled health care package with no premiums; and an increase in UPS's pension contributions.
The Teamsters declared that the tentative agreement “sets a new bar” for aircraft mechanics in the U.S. airline industry, with pay rates and benefits that surpass those at FedEx and all other major U.S.-based carriers. Upon ratification of the new contract, Local 2727 members will become the highest paid aviation mechanics in the country by a wide margin, it claimed.
UPS has in the past described its aircraft mechanics as “among the top earners in their career field”, earning $105,000 per year and not paying any premium into a comprehensive health insurance plan.
The last contract officially expired in 2013 and in late 2016 the union warned that UPS mechanics might go on strike after three years of fruitless negotiations.
"It's because of the tremendous resolve and unity of our members and their families that we're celebrating this historic agreement with UPS," said Tim Boyle, President of Louisville-based Teamsters Local 2727. "We knew if we stuck together and stayed committed to protecting the pay and benefits we've earned over decades of hard work, we'd do what many thought was impossible and win big for our families, the future of our company and our customers. This contract does just that along with raising standards throughout the aviation industry."
"I want to extend my congratulations to the Teamsters Local 2727 negotiating committee. This agreement is the culmination of over four years of long hours, hard work and dedication from them. Their focus on improving the existing agreement and quality of life for our UPS members is what now enables us to bring this industry-leading contract to the membership for their review and decision," said Capt. David Bourne, Director of the Teamsters Airline Division.
"UPS aircraft mechanics went for years without a raise and we've worried long enough about the future of our medical care," said aircraft mechanic Jack Chatburn who was on the bargaining committee. "We are eager to share the details of this top-notch agreement with our members and our families who will now have the top-notch pay and health benefits we've been fighting for. We believe the contract will be ratified swiftly."
The full details of the tentative agreement will first be disclosed to and discussed with Teamsters Local 2727 members. Members will vote whether to ratify the agreement in a secret ballot referendum that will be conducted in September.
