UPS pilots and company negotiators have restarted contract talks with federal mediation after a cargo jet crash and the grounding of MD-11 freighters, reports New York's FreightWaves.

The Independent Pilots Association, representing 3,500 UPS pilots, began mediated talks this week by video, with in-person sessions scheduled in Boston in January. The National Mediation Board stepped in after 18 months of stalled negotiations, further delayed by the 43-day government shutdown.

UPS pilots extended their contract in 2022 to allow the Teamsters to focus on ground worker negotiations. IPA President Bob Travis said pilots expect compensation equal to passenger airline peers, citing UPS's record profits during Covid. UPS posted net income of US$6.7 billion and US$5.8 billion in the past two years, but only US$3.8 billion in the first three quarters of 2025.

Labour relations in aviation fall under the Railway Act, which bars strikes or lockouts until mediation and cooling-off periods are exhausted. Arbitration is rare, and the president can appoint an emergency board to investigate disputes before industrial action is permitted.

About 275 UPS and 500 FedEx pilots remain sidelined by the MD-11 grounding. UPS pilots are pay protected, while FedEx pilots face uncertainty over future pay formulas.

FedEx pilots have been in mediation since 2021. A tentative deal in 2023 was rejected over outsourcing and quality-of-life concerns, leading to leadership changes. In September, union leaders issued a vote of no confidence in CEO Raj Subramaniam, criticising restructuring efforts.

FedEx has closed a pilot base in Cologne and shifted flying to contractors, but investors back its Network 2.0 and Tricolor strategies. FedEx's latest offer includes a 24 per cent immediate pay rise and 40 per cent over the contract term, which it says would make its pilots the highest paid in cargo aviation.