3PL/Logistics

UPS and the Independent Pilots Association have announced an agreement that avoids the immediate furlough of 300 UPS pilots

Following UPS's earlier 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 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 2nd deadline, UPS and the union have agreed there will be no furloughs through April 1st, 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 leave of absence; military leave; job sharing; reductions in flight pay guarantees; early retirement and sick bank contributions

According to Bob Miller, president of the IPA, the agreement reflects solidarity and compassion amongst the pilots

Miller also pointed out that UPS didn't have to go down this particular road, and the union appreciates the company's receptiveness to new ideas and its willingness to work together to find an alternative solution