United Parcel Service (UPS) Prepares To Furlough Pilots

United Parcel Service, Inc. (NYSE: UPS) announced plans to furlough at least 300 of its 2,800 pilots. However, United Parcel Service and the Independent Pilots Association (IPA) will continue to look for ways to cut costs in an effort to avoid the work furloughs.

"Even though the economy has begun to turn around, UPS anticipates a very gradual recovery and a continued need for belt-tightening," said UPS Airlines President Bob Lekites. "This is a painful decision for our people, but one that is right for the on-going health of our business.

"But we haven't given up on this process," Lekites added. "We continue to go well beyond our contractual obligation to seek a 'win-win' solution to avert furloughs."

In order to avoid any work furloughs in 2009, the IPA presented voluntary cost cutting options such as early retirement, job sharing, military leave, reduction in flight pay guarantees and short and long term leaves of absence.

United Parcel Service agreed to the programs and avoided any work furloughs for last year but the issue has come up again.

If the furloughs take place, they will be phased in, with the first group being furloughed in May.