Saturday, May 30, 2009

UPS looks to save $40m via pilot concessions

Company aims to save a staggering $130m over three years
Shipping News Feature

USA - UPS, the world’s largest shipping carrier, is looking to save $40 million this year in cost savings from pilots who are looking for alternatives to furloughs.

The company's pilots union is considering leaves of absence for pilots, early retirements, reduced-pay-guarantee routes, and job-sharing.

Without a voluntary cut, UPS would have to furlough about 300, or 10 percent, of its 3,000 pilots. The company’s goal is to save $131 million in wages over the next three years.

“The air business has been the most affected by this economy. That’s why we are in a position of knowing we are overstaffed with pilots” said Norman Black, spokesman for UPS.

Mike Mangeot, spokesman for Louisville, Ky.-based UPS Airlines said in an email “Due to the severe downturn in the global economy, UPS package and freight volumes have been down somewhat markedly. In response the recession, we have been analyzing all aspects of our business to maximize efficiency and minimize costs.”

The global downturn have hit volumes and had a major impact on UPS’ financial health. When UPS released its earnings, company officials said the “continuing deterioration in global economic activity resulted in decreased revenue and profitability across all business segments.”