Leaders of the UPS aircraft mechanics union are declaring victory in securing a tentative new contract that they say will deliver the country's best pay and benefits.
The pact "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," the union said in an announcement early Tuesday. "Upon ratification of the new contract, Local 2727 members will become the highest paid aviation mechanics in the country by a wide margin."
If ratified as expected, the 1,300 members of the Louisville-based union would receive raises of about 16 percent now with 3-percent annual pay hikes.
That means nearly 31 percent in increases over the five-year contract. Along with an increase in pension contributions and enhanced health care benefits, UPS agreed to pay retroactive hourly compensation calculated from the end of the last agreement in November 2013 that could gross aircraft maintenance technicians $25,000 to $65,000 and about half that range for utility helpers.
The aircraft mechanics, who are represented by Teamsters Local 2727, have aggressively accused the shipping giant during the last two years for foot-dragging over a new agreement. They picketed at Amazon warehouse sites in the region and also protested outside of Senate Majority Leader Mitch McConnell's Louisville home — after demanding that the Trump administration step up. The mechanics get about $50 a hour now.
The group cited Trump's and McConnell's pledges that workers would benefit from the corporate tax cut approved last December by Congress in better pay and benefits. UPS reported saving tens of million of dollars from reduced tax rates.
After the last agreement expired in late 2013, employees continued working under the terms of the last agreement, as is common in collective bargaining.
Teamsters representatives declined to disclose all details of the proposal until about 1,200 maintenance technicians and 100 utility helpers can review it. A ratification vote is expected sometime next month.
However, Tim Boyle, the local union president, credited pickets at McConnell's home in Louisville and targeted lobbying in Washington for pushing along the discussions recently. McConnell's staff called the National Mediation Board, which had been overseeing the bargaining, to ask about the progress, Boyle said.
It helped that mediators ordered the parties back to the table recently, which accelerated the discussions, he said.
"It's been a long haul and it's a good contract," Boyle said, adding that "there's nothing that touches" the health benefits package.