A deadline is approaching for the UPS pilots union to present ideas for saving $131 million in wages over the next three years.
The Sandy Springs-based company asked its pilots for $131 million wage concessions in response to the global recession, which has cut company profits.
Without a voluntary cut, UPS said it would have to furlough about 300, or 10 percent, of its 3,000 pilots, UPS spokesman Norman Black said.
UPS and the pilots signed a memorandum of understanding on April 29. It gives the pilots a deadline of June 8-9 to present ways to cut $40 million in 2009, $38 million in 2010 and $53 million in 2011.
"The air business has been the most affected by this economy," said Black, noting the company recently said it will retire its fleet of DC-8 aircraft. "That's why we are in a position of knowing we are overstaffed with pilots."
UPS' main air hub is in Louisville, Ky.
Black said UPS can furlough pilots under its current contract with the union, though it can't make other changes unilaterally. "We're saying if you can help us save money, we can help you save the jobs of fellow pilots," Black said.
The company suggested the union use temporary wage and pension freezes, but the union countered with leaves of absence, early retirements and job sharing.
UPS has trimmed over $1 billion in costs by freezing management salaries, suspending 401(k) matches, cutting capital expenditures and restructuring operations at package sorting centers.
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