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    Management's View of the UPS Pilots' Contract Demands

    Number of Pages: 6

     

    Summary of the research paper:

    A 6 page paper. The Independent Pilots Association (IPA) representing UPS' 2039 pilots allowed a by-mail survey of their members last August (1997) following the end of the Teamsters' strike against the company in the same month. Though UPS offered pay raises for their pilots of between 36 and 94%, the pilots nonetheless rejected UPS' contract proposal. The average pilot pay at UPS currently stands at $151,000. Pilots are restricted by law from working a full schedule—they are all essentially part-time employees, and their current hourly rate (without a contract renegotiation) stands at more than $200. Bibliography lists 6 sources.

    Name of Research Paper File: D0_UPSPilot.doc

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    been in negotiations since May, 1997, but the union agreed to suspend talks in the face of the Teamsters negotiations and subsequent strike. The contract proposal that UPS mailed all  of its pilots was summarily rejected, and the company says that the only issue remaining on which to agree is that of compensation (www.ups.com). A binding National Mediation Board  agreement precludes any chance of a strike on the part of the pilots this year, but that insurance ends January 1, 1998 (Cooper 18). "UPS spokesman Ken Shapero said...the IPAs  demands for compensation rose about 20 percent between May and August" (Cooper 18) while negotiations were on hold in deference to the Teamsters activities. The UPS proposal that has  been rejected by the companys pilots offered to "raise the typical nine-year captains annual salary 34 percent from $151,000 to $202,000 per year. It said the typical five-year co-pilots  salary would rise 56 percent and the typical two-year flight engineers salary would rise 94 percent" (Cooper 18). Even with essentially doubling some salaries under the UPS proposal, "John  Beystehner, vice president of UPS airline operations, said the companys proposed new contract would increase costs by about 4 percent" (Cooper 18). Gwynne proved to be prophetic in a February,  1997, article predicting a turbulent year for all air carriers of every service sector (46), both carriers of passengers and carriers of packages. All associated businesses have enjoyed prosperous  times, with increased revenues combined with intelligent cost-cutting measures designed to reduce operating costs. Apparently, the pilots feel they are reaching for a piece of the big green pie.  Reaching they are, too. The commercial pilots of the passenger carriers command salaries most of us can only try to imagine. The average pay package, including all pilot 

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