DOW JONES NEWSWIRES
United Parcel Service Inc. (UPS) and its pilots' union have
agreed that no pilots will be furloughed through April 1, and the
Independent Pilots Association will continue cutting costs this
year.
Savings from voluntary actions by pilots later this year could
eliminate proposed layoffs of 300 pilots.
Earlier this year, when UPS said lower shipping volumes would
require pilot furloughs, the union offered to find ways to cut
costs. UPS and the IPA then agreed on a plan to cut $131 million in
the next three years.
So far, the union has found ways to save about $90 million. They
include 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 Airlines President Bob Lekites said the agreement "shows how
a company and its union can work together to achieve a mutually
beneficial outcome."
In April, the world's largest package-delivery company by
revenue - viewed as a bellwether for global economic activity -
reported a 56% drop in first-quarter earnings and offered
disappointing guidance for the current quarter.
UPS shares closed Monday at $51.43, down 0.2%, and were inactive
after hours.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com
