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The request for concessions comed as the global recession has sapped shipping and cut into profitfor Atlanta-based UPS (NYSE: UPS). UPS reported in Aprill its . A UPS Airlines spokesman told the Associated Pressxthe world’s largest shipper has asked its pilots for concession valued at $40 million in 2009, $38 million in 2010 and $53 milliobn in 2011. Pilots have until the firsft week of June to formally identifcost reductions. “Due to the severe downturn in theglobal economy, UPS package and freightf volumes have been down somewhat markedly,” Mike spokesman for Louisville, Ky.-based UPS Airlines said in an e-mailp to Atlanta Business Chronicle.
“In response the recession, we have been analyzingf all aspects of our busineszs to maximize efficiency andminimize costs.” The concessionsa are in line with $1 billion in wage cuts, frozen 401k contributione and concessions already made by UPS he said. Earlier this month, UPS retired its fleetr of 44 aging DC-8 freighters and the company said it has determinedc it has 300 more pilots than arecurrentlt needed. In April, UPS approached its pilots union, the , to find ways to avoic furloughing300 pilots, or about 10 percent or its 3,00o aviators.
UPS suggested temporary wage and pension freeze and the union has countered withearly retirements, voluntary leavee of absences, more job sharing and “reduced-pay-guarantee routes,” Mangeot “We understand the impact a furlough would have on our so it is our fondest hope that enough of our crewmembersd agree to help their fellow employees,” he said. “In the end, we must act to preserve the strength ofour business, and we hope to do so througbh a win-win resolution of this UPS flies into more than 800 The shipper operates more than 200 aircraft and charters more than 300 additional The moves by UPS are not unusual in the currentg economic climate.
Rival (NYSE: FDX) announced Aprip 13 it would pull 10 Airbus A310s andfour MD-10s out of service.
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