UPS displacement costs?
#1
There has bee a bit of discussion on the B&G about this but maybe some of you armchair accountants could chew on this.
UPS displaces 69 pilots. Had to be done, no way around it, airplanes were getting parked.
But the 69 displacements (with secondary displacements) results in over 200 training events, and maybe 50 or so paid moves.
The training center will be churning slow so maybe estimate 3 months for someone to complete training.
200 training events, 50 paid moves, 200 pilots not producing anything for 3 months.
So the question is, why didnt the company just absorb these guys into the system without having secondary displacees? Especially in light of the pending DHL deal, and airplanes orders coming next year. Its not like anyone was going to get furloughed so they are not cutting workforce.
Wouldnt it have made much more economic sense to simply absorb the 747 guys into whatever they could hold, and maybe sit a little fat on staffing in some fleet types until its known whats going to happen with near future flying and aircraft deliveries, Then if needed next year run a vacancy/realignment?????
I dont pretend to have the big picture here. I just have to think there is some sound reason that they are doing this because on the surface it just looks like huge waste of money, not to mention upsetting the lives of employees.
UPS displaces 69 pilots. Had to be done, no way around it, airplanes were getting parked.
But the 69 displacements (with secondary displacements) results in over 200 training events, and maybe 50 or so paid moves.
The training center will be churning slow so maybe estimate 3 months for someone to complete training.
200 training events, 50 paid moves, 200 pilots not producing anything for 3 months.
So the question is, why didnt the company just absorb these guys into the system without having secondary displacees? Especially in light of the pending DHL deal, and airplanes orders coming next year. Its not like anyone was going to get furloughed so they are not cutting workforce.
Wouldnt it have made much more economic sense to simply absorb the 747 guys into whatever they could hold, and maybe sit a little fat on staffing in some fleet types until its known whats going to happen with near future flying and aircraft deliveries, Then if needed next year run a vacancy/realignment?????
I dont pretend to have the big picture here. I just have to think there is some sound reason that they are doing this because on the surface it just looks like huge waste of money, not to mention upsetting the lives of employees.
#2
Gone
Joined: Dec 2005
Posts: 1,149
Likes: 0
From: Gone
As far as airplane orders, they can always be cancelled/deferred as well. Many airlines order planes then cancel/defer.
As far as being furloughed/cutting workforce... Just because UPS has never furloughed before is no reason to believe that it will never happen like some of the guys you fly with are probably telling you. If we don't get DHL then take cover. I am on the bottom and assume I will be furloughed within 7 months...just after peak..
Plan for the worst hope for the best. Keep logbook and resume updated.
#3
Sure, I understand what you are saying, but everything is in flux right now, why not just stay a little fat on some fleets until you know for sure what is going to happen, then spend the big bucks for the displacement costs when you know for sure that it is justified?
#5
UPS will not furlough, we are very understaffed right now. A fact which is being hidden by the open time *****s and management emergency flying. The moment the f word is mentioned then the open time pickup will stop. This will immediately result in about enough opentime to make around 20 regular lines per fleet. This will result in a slow strangulation of the system and this does not include dhl or the 13 new a/c next year. I will say this with certainty, we are still netting 900 million a quarter. Furloughs will not happen.
#6
V,
I think part of the answer is our contract. UPS must decide the numbers first, place them for bid, and we as contract holders expect them to comply. Our contract requires they follow through in many areas. Thus, they can't stuff extra's. Think of the few 744 F/O's they let ride in ANC, IPA threw the flag since they didn't bid those seats out. That's the contract. The seats are open for all to bid, no changing minds at last minute. Actually, I have sympathy for UPS trying to figure out where airplanes need to be in 8 months for changing market conditions. Our contract is pretty specific and pretty binding. Reason some fleets are hectic and chaotic at times. Also, ATL seems to have the abilty to change priorities at the airline via budget changes imposed etc. So it leaves even management guessing sometimes what the best course of action is, but I want them to follow the contract as we all collectively agreed. I am not a big fan of side letters unless not addressed in the contract already. What they can do, is delay the training past the effective date. Contract says 'no problem', paid at new higher rate if applicable. When training slots open, you go. If they change requirments, we all get to rebid. Am sure UPS doesn't like this additional costs either, part market, part contractual, part age 65 on this one. I expect some delayed training on some crews in hopes of avoiding double training costs when the next bid comes out, effectively doing what you suggests
I think part of the answer is our contract. UPS must decide the numbers first, place them for bid, and we as contract holders expect them to comply. Our contract requires they follow through in many areas. Thus, they can't stuff extra's. Think of the few 744 F/O's they let ride in ANC, IPA threw the flag since they didn't bid those seats out. That's the contract. The seats are open for all to bid, no changing minds at last minute. Actually, I have sympathy for UPS trying to figure out where airplanes need to be in 8 months for changing market conditions. Our contract is pretty specific and pretty binding. Reason some fleets are hectic and chaotic at times. Also, ATL seems to have the abilty to change priorities at the airline via budget changes imposed etc. So it leaves even management guessing sometimes what the best course of action is, but I want them to follow the contract as we all collectively agreed. I am not a big fan of side letters unless not addressed in the contract already. What they can do, is delay the training past the effective date. Contract says 'no problem', paid at new higher rate if applicable. When training slots open, you go. If they change requirments, we all get to rebid. Am sure UPS doesn't like this additional costs either, part market, part contractual, part age 65 on this one. I expect some delayed training on some crews in hopes of avoiding double training costs when the next bid comes out, effectively doing what you suggests
Thread
Thread Starter
Forum
Replies
Last Post



