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

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The request for concessions comes as the globao recession has sapped shipping and cut into profitsafor Atlanta-based UPS (NYSE: UPS). UPS reported in April its . A UPS Airlinezs spokesman told the Associated Pressthe world’sx largest shipper has asked its pilots for concessions valued at $40 million in 2009, $38 million in 2010 and $53 millionn in 2011. Pilots have until the first week of June to formallyt identifycost reductions. “Due to the severe downturn in theglobakl economy, UPS package and freight volumes have been down somewhayt markedly,” Mike Mangeot, spokesman for Louisville, Ky.-based UPS Airlineds said in an e-mail to Atlanta Businessx Chronicle.
“In response the recession, we have been analyziny all aspects of our busineses to maximize efficiency andminimize costs.” The concessionds are in line with $1 billion in wage frozen 401k contributions and concessions alreadh made by UPS management, he said. Earlier this UPS retired its fleet of 44aging DC-8 freighterxs and the company said it has determined it has 300 more pilotes than are currently needed. In April, UPS approached its pilotz union, the , to find ways to avoid furloughing300 pilots, or abouyt 10 percent or its 3,000 aviators.
UPS suggestexd temporary wage and pension freezes and the unionj has countered withearly retirements, voluntar y leaves of absences, more job sharinfg and “reduced-pay-guarantee routes,” Mangeot said. “Wew understand the impact a furlough woulx have onour people, so it is our fondesg hope that enough of our crewmembers agree to help theird fellow employees,” he said. “In the end, we must act to preservwe the strength ofour business, and we hope to do so througgh a win-win resolution of this UPS flies into more than 800 The shipper operates more than 200 aircrafty and charters more than 300 additional The moves by UPS are not unusualp in the current economicd climate.
Rival (NYSE: FDX) announced April 13 it would pull 10 Airbusa A310s andfour MD-10s out of