Tue, Jun 09, 2009
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."
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