The Independent Pilots Association (IPA) and UPS Airlines have concluded a tentative agreement on a new labor contract.

The agreement provides for wage and pension improvements and a variety of changes to work rules. It also enables the company to reward its pilots in a responsible manner, maintaining the flexibility needed to serve customers and expand the business while remaining competitive.

Specific details of the accord will not be disclosed before the IPA presents the tentative contract to all UPS pilots. The contract must be ratified by a majority of UPS's 2,700 pilots. If ratified, the contract would not become amendable until the end of 2011.

According to the IPA, a vote by the pilots probably will be completed by mid-September.

"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."

"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. "We are pleased the IPA leadership team fully endorses the agreement."

Both Nicholson and Beystehner said they "commend the National Mediation Board (NMB) for its guidance during negotiations and especially the expertise provided by Linda Puchala, our primary mediator. The NMB has been instrumental in getting us to this point and provided the resources we needed, including the services of John Livingood, who also participated as a mediator."

UPS Airlines is the world's ninth largest airline.

FMI: www.UPS.com, www.ipapilot.org