UPS pilots and company resume contract talks, enlist federal mediator

Financial Performance - UPS's net income has significantly decreased, with $6.7 billion and $5.8 billion reported in the previous two years, and a current net profit of $3.8 billion for the first three quarters of 2025 [1] - The pilot group at UPS has expanded due to a transport contract with the U.S. Postal Service and overall market strength, growing from 3,200 pilots three years ago [1] Labor Relations and Contract Negotiations - UPS pilots extended their contract in 2022 for two additional years to allow the Teamsters union to negotiate for ground workers, with the pilot contract eligible for amendment since September 1 [2] - The National Mediation Board has facilitated talks between UPS and the Independent Pilots Association (IPA), representing 3,500 UPS pilots, after 18 months of stalled negotiations [3] - Initial negotiations with a federal mediator occurred via video conferencing, with in-person discussions scheduled to move to Boston in January [4] Industry Context - UPS and FedEx pilots are advocating for better pay and benefits, citing their contributions during the COVID-19 pandemic that helped maintain profit growth [5] - The grounding of over 60 MD-11 freighters has left hundreds of UPS and FedEx pilots idle, impacting contract negotiations [7][13] - Labor relations in the airline industry are governed by the Railway Act, which restricts strikes and lockouts until extensive bargaining steps are completed [8] FedEx Comparison - FedEx pilots are also experiencing prolonged contract negotiations, with their talks starting in March 2021 and currently in federal mediation [13] - FedEx's recent offer included a 24% immediate pay increase and a total of 40% over the agreement's duration, aiming to make its pilots the highest paid in the cargo industry [19]