Originally Posted by To Stay or Go

Hello folks, this is Tom Nicholson (UPS 747 Cpt and IPA Pres) with the EB Hotline for Saturday, March 11th.

This week saw the pilots of Federal Express, as represented by ALPA, and FedEx management move much closer to a final agreement. Industry experts believe a deal at UPS archrival FedEx could come within a matter of weeks.

A ratified pilot agreement at Federal Express, according to those same industry experts, will provide FedEx with a major competitive advantage over UPS. As UPS remains stymied in a protracted and unresolved pilot labor dispute—FedEx CEO Fred Smith is poised to present his company as one free of labor unrest.

UPS—its employees and shareholders—could be significantly impacted by such a development.

There is another way. Over the past months, the Association and UPS management have narrowed our differences significantly. What remains, however, is the difference between a substandard contract, versus a contract that meets the reasonable requirements of the pilot group.

The Executive Board is of the belief that one more attempt should be made to re-engage the Company in the process of negotiations prior to any Fed Ex deal. Of course the timing, shape, and resumption of the process are totally in the hands of the National Mediation Board. The EB is committed to working with the NMB and UPS management to determine if sufficient grounds exist to warrant a re-engagement in the process of negotiations at this time. Those preliminary discussions have begun.

Again, both UPS and IPA must keep our eyes on the target. A multinational, multibillion dollar corporation operating a time sensitive delivery and logistics international network cannot compete while weighed down by labor issues. This is akin to fighting with one arm tied behind your back. UPS wants a pilot labor agreement. The IPA membership wants an agreement. The NMB wants an agreement.

On the eve of a potential FedEx deal, the necessity of UPS and IPA to make an additional attempt to resolve our disagreement over the contract is sound logic. To succeed, however, both sides will have to demonstrate flexibility.

We are signaling our intent to join in a process of give and take. At the same time, we are sending a very strong message to the Company that their last proposals outlined in Appleton in December are completely unacceptable to this pilot group. Critical areas of the contract must be successfully addressed prior to any possibility of a TA.

As this possibility of a re-engagement in the process unfolds in the coming weeks, we’ll keep you informed—subject only to any restrictions placed on the parties by the NMB.

Well folks that wraps it up from here for this week. The next EB Hotline will be on Saturday, March 18th. Until then, fly safe, be professional and remain united. >