Cooperative Effort Means 300 Flying Jobs Saved

UPS and its pilots’ union, the Independent Pilots Association, have announced an innovative agreement that averts the immediate furlough of 300 UPS pilots. Earlier this year, following UPS’s review of volume reductions and a stated need to furlough pilots, IPA’s leadership offered to identify ways to cut operational costs. UPS and the IPA subsequently agreed on cost-cutting targets totalling $131 million over the next three years.

Using a variety of voluntary steps, the IPA to date has identified savings totalling approximately $90 million dollars pending final calculations. Although the full three-year goal was not reached by last week’s original June 2, 2009, deadline, UPS and the union have agreed there will be no furloughs through April 1, 2010, and that the IPA will continue to work this year to produce additional savings.

Voluntary pilot savings generated later this year could eliminate the proposed layoffs entirely.

The savings identified by the IPA have been produced through voluntary programs such as pilots taking short- and long-term leaves of absence; military leaves; job sharing; reductions in flight pay guarantees; early retirement, and sick bank contributions. UPS and the IPA are confident they can achieve the total savings goal.

”This is another example of UPS’s commitment to its employees and their families,” said Bob Lekites, UPS Airlines president. “It also shows how a company and its union can work together to achieve a mutually beneficial outcome. 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.”

"This is a remarkable achievement," said Bob Miller, president of the IPA. "First of all I'd like to thank our pilots. None of this would have happened if they hadn't stepped up to volunteer from every fleet, seat and domicile. It shows tremendous solidarity and compassion for our fellow pilots. Second, I want to thank UPS. They didn't have to go down this road with us. We appreciate their openness to new ideas and their willingness to work with us in finding an alternative solution."

FMI: www.ups.com, www.ipapilot.org