ALPA, DHL sign five-year accord

By Staff -- Logistics Management, 2/1/1999

Shippers that depend on air-express service for their time-sensitive shipments were able to start the New Year with a sigh of relief. Just two days before Christmas, DHL Airways, the operating arm of DHL Worldwide Express, announced that it had signed a five-year labor agreement with the Air Line Pilots Association (ALPA). The pact ended 18 months of negotiations between DHL and the union.

The new contract includes changes that provide pilots with better job security, duty scheduling, compensation, and retirement benefits. The contract was overwhelmingly accepted by ALPA members, with 93 percent voting in favor.

According to Capt. Dan Brannan, chairman of the ALPA organization at DHL, the agreement gives pilots the benefits they wanted while still meeting the carrier's business needs. "... DHL pilots now have an industry-standard contract that establishes parity with our peers while allowing our company the continued flexibility it needs to grow and prosper," he said after the voting results were announced.

The negotiations were conducted under a process called "interest-based bargaining." Unlike traditional labor negotiations, in which labor and management exchange proposals or make demands, both sides in an interest-based session identify their areas of concern and develop mutually acceptable solutions. Brannan also credited the assistance of a mediator for helping bring negotiations to a successful conclusion.

The tone of DHL's negotiations was in marked contrast to the experience of competitor Federal Express. FedEx, which had been a non-union operation since its founding, in December signed a tentative agreement with the newly formed FedEx Pilots Association. The five-year contract, which is scheduled for a vote early this month, includes a 17-percent pay raise over five years and makes changes in work rules and benefits. Talks between management and labor frequently were acrimonious, culminating in the pilots' threat to strike during the busy holiday season. They backed off after FedEx announced it would lease aircraft and crews to replace strikers.