UPS to begin furloughing 300 pilots in May absent new agreement

UPS Airlines said it will begin furloughing "at least" 300 pilots in phases beginning in May unless it can "find a solution with the pilots' union that would avert or mitigate the layoffs before they take effect." UPS's 2,800 pilots, represented by the Independent Pilots Assn., agreed with the company last June to take "a variety of voluntary steps" to cut $90 million in costs in exchange for a promise from management that there would be no furloughs through April 1, 2010 (ATWOnline, June 10, 2009). The company stated at the time that it had around 300 more pilots than necessary. The delivery giant said yesterday it has engaged in discussions with IPA regarding "additional cost-cutting initiatives that would eliminate the threat of layoffs entirely," but those talks "have failed."

UPS Airlines President Bob Lekites said, "Even though the economy has begun to turn around, UPS anticipates a very gradual recovery and a continued need for belt-tightening. This is a painful decision for our people, but one that is right for the ongoing health of our business." He added, however, that UPS hasn't "given up" on finding alternatives to the job cuts and will "go well beyond our contractual obligation" to try to reach a cost-cutting agreement with IPA to avert furloughs.