UPS Plans to Furlough at Least 300 Pilots

[OhioChick]

Source: Wall Street Journal

FEBRUARY 8, 2010, 4:16 P.M. ET

United Parcel Service Inc. said it plans to furlough at least 300 of its airline pilots as the world's largest package shipper, by volume, cited a continued need for belt-tightening amid a gradual economic recovery.

The planned furloughs are the latest step UPS has taken over the past two years to react to tough economic conditions. UPS has enacted a $1.4 billion cost-cutting effort that includes a salary freeze, suspension of the company's match for 401(k) retirement plans and trimming capital expenditures. Last month, UPS said it would trim 1,800 jobs.

UPS, which employs about 2,800 pilots, said Monday it is working with the pilots union, the Independent Pilots Association, to find solutions to avert or mitigate the layoffs before they take effect. UPS said it has been working with the union over the past year to cut costs and avoid furloughs.

Based on solutions that were achieved last year, UPS committed to not furlough any pilots in 2009. Subsequent discussions to identify sufficient operating savings failed, the company said.



Read more: http://online.wsj.com/article/SB10001424052748703615904575053611927044380.html?mod=WSJ_business_whatsNews

[AllentownJake]

1. I wonder what they did with all the profits from the mysterious on-line sales

that saved Christmas and were delivered....oh right, that never happened. It was just something the economy is in super recovery group made up.

[high density]

2. Amazon.com Announces Fourth Quarter Sales up 42% to $9.5 Billion

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1380453&highlight=

[AllentownJake]

3. You would think that if Amazon was doing so well

That UPS would be gearing up for all that consumer demand they gots going on.

:rofl:

[Scruffy1]

4. Amazon.com ships with FedEx

They used to be with the USPS but switched over a year ago.

[Goldom]

5. I always got, and still do get, Amazon boxes by UPS

Must depend on location?

[Auggie]

6. It's a complicated business

UPS is also in fulfillment -- they stock merchandise that is owned by others in their own warehouses, then package and deliver by ground. It could be shipped to UPS from the manufacturer via any number of air or ground carriers including their own, FedEx, or some of which we've never heard of. I think that's the way it can work -- in a nutshell.

[donheld]

8. I still get everything I order from Amazon via UPS

[Grassy Knoll]

7. So sad, Damn it. N/t