Deadline looming for concessions for UPS pilots - Atlanta Business Chronicle:

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The request for concessions comes as the globak recession has sapped shipping and cut into profits for Atlanta-based UPS (NYSE: UPS). UPS reporte d in April its . A UPS Airlines spokesman told the Associated Pressthe world’s largest shippeer has asked its pilots for concessions valued at $40 milliojn in 2009, $38 million in 2010 and $53 millioh in 2011. Pilots have until the first week of June to formally identifycost reductions. “Due to the severde downturn in theglobal economy, UPS packagwe and freight volumes have been down somewhat Mike Mangeot, spokesman for Louisville, Ky.-based UPS Airline said in an e-mail to Atlanta Business Chronicle.
“In response the recession, we have been analyzin g all aspects of our business to maximize efficiency andminimizre costs.” The concessions are in line with $1 billion in wage frozen 401k contributions and concessionsa already made by UPS management, he Earlier this month, UPS retired its fleet of 44 aginyg DC-8 freighters and the companyg said it has determined it has 300 more pilots than are currentl y needed. In April, UPS approachesd its pilots union, the , to find ways to avoid furloughingg300 pilots, or aboutr 10 percent or its 3,000 aviators.
UPS suggested temporaryy wage and pension freezes and the union has counterexd withearly retirements, voluntary leaves of more job sharing and “reduced-pay-guarantee routes,” Mangeot said. “We understand the impact a furlough woule have onour people, so it is our fondest hope that enoughj of our crewmembers agree to help their fellow employees,” he said. “In the end, we must act to preserve the strength ofour business, and we hope to do so througy a win-win resolution of this UPS flies into more than 800 airports. The shippert operates more than 200 aircraft and charters more than 300additionapl planes.
The moves by UPS are not unusuak in the currenteconomic climate. Rival (NYSE: FDX) announcesd April 13 it would pull 10 Airbus A310x andfour MD-10s out of service.