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UPS contract breach

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Jan 23, 2005
UPS breaches pilot contract, claims IPA
The Independent Pilots Association says that, after months of deception, UPS has finally admitted that it will breach its pilot's contract by failing to deliver the flying from the Menlo acquisition on December 19, 2005, as promised. Under the company's new timetable, integration of Menlo flying into the UPS network will not occur until July 17, 2006. (10/5/2005)
“This is not a matter of a company trying in good faith, but simply failing to meet a contractual deadline,” said IPA president, Capt. Tom Nicholson. “For months, we have received nothing but assurances from UPS that the transition of Menlo flying was on schedule.” He added that UPS only admitted breaching the contract after the IPA obtained third party confirmation that UPS had awarded aviation subcontracts to cover Menlo flying well into 2006.
The IPA has been meeting with UPS on a regular basis since it announced the purchase of Menlo nine months ago. At all of these meetings, the IPA has been assured by UPS Labour that Menlo integration was on track and that IPA Crewmembers would be taking over the Menlo flying in December. UPS Labour is the same group currently negotiating a new contract with the IPA.
“It is insulting to think that while UPS was making these assurances to us, they were cancelling Airbus A-300 orders and negotiating the Scope clause of our new contract. All the while, they knew they were setting us up for a massive contract breach,” said Capt. Nicholson.
He added that UPS’s timing could not be worse. “This month, we will enter our fourth year of contract talks, our union is in the middle of leadership elections, and we are on the eve of the Christmas shipping season. This is the wrong kind of news to be delivering just before the most critical quarter of operations.”
The impact of UPS's decision to outsource IPA contract protected work to a patchwork of carriers for the next seven months means the loss of a significant amount of new IPA flying.
“It would be one thing if the Menlo Scope breach were an isolated issue,” said Nicholson. “But, when you consider that UPS currently outsources six weekly flights to China Air to move computer parts from Asia to Nashville for Dell, and its current negotiating proposals on Scope, it becomes systemic.” [Source: Independent Pilots Association]

What UPS Gold "Supply chain Solutions", isn't that all farmed out to sub contractors like "FedEx Custom Critical"?
and CAT remains in place....

Funny, all year some on this board kept swearing that CAT and Express.net would be out of DAY in December due to UPS taking over. This was coming from people who had no clue, while some of us that work there and are in the know kept explaining that UPS was working deals with us "lowly" contractors behind the IPA's back. They have always intended to keep us there indefinitely. Just because UPS bought out the Menlo hub does not mean that we should be out of work because IPA crewmembers are getting there scope clause violated, we gotta pay our bills too. Maybe IPA would get a little more support if you had preferential hiring for us contractors in DAY, imagine that. Think about using your union to better our lives as well and then I bet there would be a big change of heart to support your efforts. Then again all we have to do is remember how UPS took care of Challenge Air Cargo, so I am guessing the IPA would not be interested in that idea, so the contractors will not care about the IPA's plight.
Why do you contractors think you are entitled to fly OUR freight? You are a CONTRACTOR, you do not work for UPS. UPS has admitted that it will be in breach of the contract and now wants to cut a deal with the IPA. You can expect a big $$$$ penalty payment to each crewmember and improved contract language as a settlement. UPS has now said that July 17, 2006 is the date of the handover of ALL Menlo flying to the IPA. UPS has stated that they will buy out any remaining portion of a contractor's contract in order to make the handover deadline. Why should you contractors expect some kind of preferential interview? Frankly, I and most IPA crewmembers that I've talked to could care less what you and the rest of the contractors think of us. We are not here to provide a job for YOU. You want to work here, apply like everone else. We are not looking for your support on this issue and if you are so worried about finding new work, go down the street to ILN and whore yourselves out to DHL and undercut ABX and Astar.

Since I'm sure some of you won't believe me so here is that latest cheif pilots hotline exerpt concerning Menlo.

J Barnes
System Chief Pilot
When UPS first met with the IPA in September 2004 about the acquisition of Menlo Worldwide Forwarding, we believed that we would be able to transition Menlo’s flying to UPS aircraft and crews within the contractual deadlines.
However, despite our best efforts, the transition is taking longer than anticipated. Our integrated network won’t be fully operational until next July.
The delay is certainly not advantageous to UPS. The sooner we can integrate our network, the sooner we fully realize the efficiencies of the combined system.
While the freight network won’t be ready by the contractual deadline, we understand the terms of our contract agreement and have informed the IPA that we will live up to them.
The addition of Menlo’s heavy air freight volume to the UPS network is a great thing for our company and the pilot group. It creates a new source of revenue.
It helps position us as a global provider of comprehensive transportation solutions.
And, it helps us create new jobs and upgrade opportunities for you. We will be adding 11 aircraft and 24 lines to our network to fly the Menlo air freight. That equates to 101 new pilot jobs. We opened discussions this week with the leadership of the IPA on this Menlo issue. We believe that, by working together, we can arrive at a mutually favorable alternative solution.

Here is an article in the Louisville Courier Journal.

Wednesday, October 5, 2005

Pilots and UPS at odds
Menlo integration's delay angers union

By Bill Wolfe
[email protected]
The Courier-Journal

UPS is behind schedule for integrating the former Menlo Worldwide
Forwarding into its operation and is headed toward breaching an
agreement with its pilots union, the union claimed yesterday.

UPS, which is expanding its main air hub in Louisville to handle large
freight as part of its plan to absorb Menlo, finalized its purchase of
the company last December. That gave it one year to make sure pilots
from the union -- the Independent Pilots Association -- were flying the
former Menlo's shipments, IPA spokesman Brian Gaudet said.

"Last week, they came out and told us that, no, in fact, they weren't
going to meet the deadline, and Menlo flying would not be integrated
into the UPS network until July 17 of '06," Gaudet said. The union has
filed a grievance over the matter with the National Mediation Board,
which is also overseeing ongoing contract talks between the union and UPS.

UPS spokesman Mark Giuffre said yesterday that there have been delays
in integrating the operations but that "UPS has not violated its
existing contract with the IPA, and under no circumstances will we do so."

The company hopes to work out an agreement with the IPA but, if
necessary, can place all the Menlo flights under the IPA before the
freight operations are fully merged into UPS, he said.

Since February, when UPS announced plans to close Menlo's Dayton,
Ohio, hub and build a main air-freight center in Louisville, the company
has been "acquiring land, we've been moving tenants, we've been hiring
new pilots, and we're moving as quickly as possible" to build the
Louisville hub and facilities in five other cities, Giuffre said.

He said UPS had initially hoped to complete the work by next spring
but now doesn't expect full integration until July. "It certainly is not
in UPS' interest to delay the integration, since it will be far more
efficient to utilize the UPS network than to continue the flights into
and out of Dayton," he said.

The pilots union also accused the company of misleading its officials
by giving assurances that Menlo integration was on track. Whenever the
union asked about progress this year, "the response we always got was
'Yep, no problem, we're going to make the deadline, don't worry about
it,' " Gaudet said.

Giuffre said "there really has not been much discussion at all with
the union regarding the Menlo transition" and that the company was open
with the union about the issue at a recent meeting.

"We've said all along that this will be IPA flying and that the
acquisition (of Menlo) represents a great deal for UPS and its
employees, especially the pilots."

Giuffre said UPS is expanding opportunities for pilots with regular
growth, as well as through the Menlo purchase. In the last year, the
company has been adding about 300 pilots, and one-third of that growth
came from the addition of Menlo, he said.
Last edited:
goastar said:

Are you saying ugh because you worry about CAT and the other contractors being on the prowl for new work? I'm sure they'd love to talk to Mr. Beljaars about signing on.

wow- you are really confused. contract carriers are receiving the same "pref. hiring" as any other pilot trying for ups. i understand you to want and believe you are entitled to a position because you fly freight under contract for ups. well so does many many airlines (big and small). i would encourage you to speak with those that submitted online rec.s for you.

"Think about using your union to better our lives as well and then I bet there would be a big change of heart to support your efforts." well- i can say that the ipa has submitted numerous models and data about staffing, new-hire pay, contract flying, pay protection for new-hires hired into FE seat while others are hired as FO's. these are just a few examples of the many issues that the ipa continues to pursue. so- we are offering support. (i'm sorry if the support you may want is to look the other way while ups intentionally violates an article of our contract.)

What has any union done for any pilot group in recent years? UPS, Northwest, Delta, USAir, the list goes on. I don't think too many CAT pilots will care if they fly your freight especially when your retort is so combative and non-caring about other pilots' jobs. We all know that most of you could care less about the contractors in Dayton, thats why you are making it so much easier for us to undermine what you are trying to do in order to keep our jobs. I am not on your side nor your managment's side. I am on my side, that means that while the IPA "protects" your jobs, I and others will protect our jobs. Its a every pilot for him or herself world now, new blood, new economy, new issues. I would never SCAB, however, I am sure that if we CAT pilots stay united we can find other ways to keep working. How much money am I taking from your pocket anyway? Good luck with the negotiations, however many more years it takes. Just cause your managment says that they want to work this out ASAP, means nothing. How many years have you been fighting for a new contract and they string you along? Get used to it, we are cheaper and make more money for them. Do you really think that they want to pay UPS pilots three times more than what we make plus benefits? Do a little math.

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