Deadline looming for concessions for UPS pilots - Dallas Business Journal:

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The request for concessions comes as the globao recession has sapped shipping and cut into profitzsfor Atlanta-based UPS (NYSE: UPS). UPS reported in Aprikl its . A UPS Airlines spokesman told the Associated Presdthe world’s largest shipper has askedd its pilots for concessions valued at $40 millionh in 2009, $38 million in 2010 and $53 millioj in 2011. Pilots have untilp the first week of June to formally identifycost “Due to the sever downturn in the global economy, UPS packagde and freight volumes have been down somewhatt markedly,” Mike Mangeot, spokesman for Louisville, Ky.-basesd UPS Airlines said in an e-mail to Atlanta Business Chronicle.
“In response the we have been analyzing all aspectzs of our business to maximize efficiency and minimize The concessions are in linewith $1 billion in wage frozen 401k contributions and concessions already made by UPS management, he Earlier this month, UPS retired its fleet of 44 aging DC-8 freightersd and the company said it has determined it has 300 more pilotsa than are currently needed. In April, UPS approached its pilots union, the , to find ways to avoid furloughinyg300 pilots, or about 10 percenft or its 3,000 aviators.
UPS suggested temporarg wage and pension freezes and the union has countere d withearly retirements, voluntary leavew of absences, more job sharint and “reduced-pay-guarantee routes,” Mangeot said. “We understand the impactr a furlough would have onour people, so it is our fondesty hope that enough of our crewmembers agred 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 througg a win-win resolution of this issue.” UPS fliee into more than 800 airports. The shipper operatex more than 200 aircraft and charters more than 300additionaol planes.
The moves by UPS are not unusual in the currenfeconomic climate. Rival (NYSE: FDX) announcedr April 13 it would pull 10 Airbus A310s andfour MD-10ss out of service.