Members of Teamsters Local 2727 have rejected a labor deal with United Parcel Service Inc. (NYSE: UPS), the company confirmed.
This union represents about 1,300 aircraft mechanics and related employees. The two sides had reached a tentative, five-year contract agreement in August, which had to be ratified by union members. I've reached out to union representatives for an exact vote count but have not heard back yet. This story may be updated.
"UPS is disappointed by the vote result," Mike Mangeot, public relations manager for Louisville-based UPS Airlines, said in an emailed statement. "Together with Local 2727 negotiators, we established a generous agreement that maintained industry-leading wages and benefits and provided excellent income security for our aircraft mechanics."
Teamsters 2727 and UPS had been negotiating this contract through a federal mediator for the last four years. The tentative agreement was said to increase pay rates and benefits, surpassing those at FedEx and all other major U.S.-based carriers. In a news release announcing the tentative deal in August, the union leadership said the Local 2727 members would become the highest-paid aviation mechanics in the country by a wide margin if this was approved.
Instead, it looks like the two sides are going back to the negotiation table.
"This contract is under the control of the National Mediation Board, and we will meet with Teamster leaders and the NMB in the near future to discuss the next steps," Mangeot said. "We continue to operate under normal conditions, and our customers can count on the reliable service they have come to expect from UPS.”
This is not the only deal UPS is working on with the Teamsters.
The company has also negotiated a national labor deal with the International Brotherhood of Teamsters, which covers drivers, package handlers and other employees. That agreement, which is being voted on now by members, would apply to more than 250,000 employees across the country.