Shipping giant UPS preparing to furlough 54 pilots on Sunday in cost-cutting move

UPS to furlough 54 pilots on Sunday

ATLANTA — Shipping giant UPS, which said just last month that the improving economy helped boost its first-quarter profit and its outlook for the year, is preparing to furlough dozens of pilots for the first time ever as part of a long-anticipated cost-cutting move.

The company, which has 2,819 pilots, said it simply has more pilots than it needs. It says it tried, but failed, to reach a deal with the pilots union on enough concessions that would have averted the need for furloughs.

UPS, based in Atlanta, warned in February that pilots would need to agree to more cost savings or the company would have to furlough at least 300 of them.

UPS said Wednesday that the first 54 furloughs are expected to happen Sunday.

Furloughs, by definition, idle employees for an indefinite period. Spokesman Norman Black said the pilots to be idled could be recalled to duty if business conditions improve further.

UPS did not say when the next round of furloughs might occur, though it could be before the end of this year.

The union that represents UPS pilots said in a statement that it had already agreed to cost cuts that it believes should be enough to keep any pilots from being furloughed well into 2011. It suggested that UPS is acting in bad faith given the improvements in the economy that the company itself has noted.

Black said that based on seniority, the majority of the furloughs are expected to come from the company’s crew base in Alaska, where a lot of junior pilots are currently assigned.