UPS pilots face deadline for wage concessions
A deadline is approaching for the UPS pilots union to present ideas for saving $131m in wages over the next three years.
A deadline is approaching for the UPS pilots union to present ideas for saving $131m in wages over the next three years.
The company asked its pilots for wage concessions in response to the global recession, which has cut company profits.
Without a voluntary cut, UPS said it would have to furlough about 300, or 10%, of its 3,000 pilots, UPS spokesman Norman Black said.
UPS and the pilots signed a memorandum of understanding on 29 April. It gives the pilots a deadline of 8-9 June to present ways to cut $40m in 2009, $38m in 2010 and $53m in 2011.
“The air business has been the most affected by this economy,” said Black, noting the company recently said it will retire its fleet of DC-8 aircraft. “That’s why we are in a position of knowing we are overstaffed with pilots.”
Black said UPS can furlough pilots under its current contract with the union, though it can’t make other changes unilaterally. “We’re saying if you can help us save money, we can help you save the jobs of fellow pilots,” Black said.
The company suggested the union use temporary wage and pension freezes, but the union countered with leaves of absence, early retirements and job sharing.
UPS has trimmed over $1bn in costs by freezing management salaries, suspending 401(k) matches, cutting capital expenditures and restructuring operations at package sorting centres.
