LOUISVLLE, Ky. (AFX) - United Parcel Service Inc. and its pilots' union said Friday they have reached a tentative agreement on a new labor contract.
'We have negotiated a fair and balanced contract that's good for our pilots and good for the company,' said John Beystehner, UPS's chief operating officer and president of UPS Airlines.
The company and union said they will not disclose details of the agreement until UPS' 2,700 pilots vote on it. The Independent Pilots Association union said it has endorsed the agreement and expects a rank-and-file vote to be completed by mid-September.
The company and union said only that the contract offers wage and pension improvements, as well as work-rule changes. It would run until the end of 2011.
'This tentative agreement has been unanimously approved and endorsed by both the IPA Executive Board and its pilot negotiating committee and is one we will present to our membership for ratification without hesitation,' said IPA President Tom Nicholson. 'It includes immediate improvements to pay as well as percentage increases in future years while also improving pension benefits and work rules.'
Both the union and company thanked the National Mediation Board for its help during negotiations. Atlanta-based UPS and its pilots had been in federal mediation since June 2004.
UPS shares closed down 44 cents at $82.33 on the New York Stock Exchange.
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