Economics

UPS Pilots Complain About Shortage of Airplanes

  • Aviators seek arbitration over use of third-party contractors
  • Courier says it needs more capacity while awaiting new planes

A United Parcel Service Inc. jet freighter gains altitude as another waits for takeoff following the afternoon sort at the UPS Worldport hub in Louisville, Kentucky, U.S., on Thursday, July 24, 2014. 

Photographer: Luke Sharrett/Bloomberg

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United Parcel Service Inc. was already in trouble with Wall Street over a long-term investment plan to cope with soaring e-commerce. Now the company is clashing with its pilots union because of a short-term fix for the same challenge.

Aviators are angry that UPS has turned to third-party cargo airlines to help make up for a shortage of aircraft capacity. Accusing UPS of years of poor planning and insufficient investment, the Independent Pilots Association has complained to an industry arbitrator that the courier is violating its labor contract by outsourcing flying that should be done by its own pilots.