UPS says it may furlough pilots

UPS warned that it is close to starting layoffs of at least 300 pilots, but also said it is still working with its pilots union to avoid the job cuts.

The Sandy Springs-based shipping giant has about 2,800 pilots and said it has been working with its union, the Independent Pilots Association, for the past year to cut costs and avoid furloughs.

Last June, the company and the union said they reached an agreement on cost cuts to avoid furloughs through April 1, 2010.

But the deal called for talks to continue on additional cuts, and UPS on Monday said those discussions have failed to identify "sufficient operating savings."

IPA president Bob Thrush said the union feels it could have met the company's original cost cutting target without furloughs, by continuing with other savings measures.

"We feel it's unfortunate that the company chose to furlough instead of continuing with the voluntary cost measures that the pilot group had come up with," Thrush said.  He said the company increased its target for cost savings to $244 million from $131 million. "We said, ‘Whoa, wait a minute, we can get to the cost savings that you wanted, but now you want more and longer?' " according to Thrush. He said the company also wants contract concessions.

Both sides said they will continue talks to try to avert furloughs.