UPS and pilots reach agreement

UPS  HR   3PL

Global - UPS and its pilots union have reached an agreement that would stave off the immediate furlough of 300 UPS pilots.

Earlier this year, UPS announced a possible need to furlough pilots to match deteriorating demands. Its pilots union, the Independent Pilots Association (IPA) has since identified ways to cut operations costs, and the two have agreed on cost cutting targets totalling US$131 million over the next three years.

These cost cutting measures are voluntary programmes including pilots taking short-and long-term leaves of absence, military leaves, job sharing, reductions in in-flight pay guarantees, early retirement and sick bank contributions.

"[These measures] show how a company and its union can work together to achieve a mutually beneficial outcome," said Bob Lekites, UPS Airlines president. "We applaud our pilots for making the voluntary commitments necessary to help us protect our business and UPS jobs in this uncertain global economy and we thank the IPA for their leadership in this process."

UPS and the IPA have agreed that there will be no furloughs through April 1 2010, and that the IPA will continue to work this year to produce additional savings.

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