UPS MOU passed no furlough until April 2010!!
 

UPS, PILOTS REACH AGREEMENT TO AVOID FURLOUGHS

LOUISVILLE, June 8, 2009 -- UPS (NYSE:UPS) and its pilots union, the Independent Pilots Association, today announced an innovative agreement that averts the immediate furlough of 300 UPS pilots.

Earlier this year, following UPS’s review of volume reductions and a stated need to furlough pilots, IPA’s leadership offered to identify ways to cut operational costs. UPS and the IPA subsequently agreed on cost-cutting targets totaling $131 million over the next three years.

Using a variety of voluntary steps, the IPA to date has identified savings totaling approximately $90 million dollars, pending final calculations. Although the full three year goal was not reached by last week’s original June 2 deadline, UPS and the union have agreed there will be no furloughs through April 1, 2010, and that the IPA will have another opportunity later this year to produce additional savings.

Voluntary pilot savings generated later this year could eliminate the proposed layoffs entirely.

The savings identified by the IPA have been produced through voluntary programs such as pilots taking short- and long-term leaves of absence; military leaves; job sharing; reductions in flight pay guarantees; early retirement, and sick bank contributions. UPS and the IPA are confident they can achieve the total savings goal.

”This is another example of UPS’s commitment to its employees and their families,” said Bob Lekites, UPS Airlines president. “It also shows how a company and its union can work together to achieve a mutually beneficial outcome. We applaud our pilots for making the voluntary commitments necessary to help us protect our business and UPS jobs in this uncertain global economy and we thank the IPA for their leadership in this process.”

"This is a remarkable achievement," said Bob Miller, president of the IPA. "First of all I'd like to thank our pilots. None of this would have happened if they hadn't stepped up to volunteer from every fleet, seat and domicile. It shows tremendous solidarity and compassion for our fellow pilots. Second, I want to thank UPS. They didn't have to go down this road with us. We appreciate their openness to new ideas and their willingness to work with us in finding an alternative solution."

Thanks from a bottom 100 dude!

Let me get this right. They took our 90 mil and gave us until apr 2010. Well i'm calling the ipa to withdraw my contribution. All or nothin so they can give out furlogh notices after apr 2010 while i'm stuck doin bunch of rg lines and gave up all the sick time. NOOP NOT ME IWANT MY MONEY BACK:mad:

Bottom 68 here. Thank you to all that helped out, especially those above me. It will be a tough year for me, taking a pay cut of about 30% for the next two years. Still, this is much better than being unemployed in this economy. Let's hope things turn around before next year.

Again, thank you IPA pilots for your sacrifices. My family and I really needed this reprieve.

Can UPS still do the Art. 14 for the DC8 crews? Or a Realignment/Displacement Bid? For Training savings, I see Art. 14 being used. I dont recall if the MOU was a player in holding UPS hands to a Realignment Bid?

Brownie,

Read the original MOU on the IPA website. It allowed for a furlough in April 2010 if the economy worsens, or flying decreased. Something along those lines. At that point the programs would be suspended.

So it sounds like they agreed to the MOU even though we did not reach their goals.

And don't shoot the messenger !

;)


A big THANKS to all that chose to participate !

I'm sure we'll get some more info soon, but it looks like we may have "borrowed" $10 million in savings from 2010 to make the 2009 numbers. There is no conspiracy theory here, just a compromise that allows the MOU to be accepted even though we didn't hit the 2009 target. My guess is we'd have to come up with another $10 million later this year to guarantee no furloughs through 2011.

Thanks to all who helped make this happen!

Commando,

I don't see where you're coming up with this Article 14 stuff, my money says it will be a Vacancy/Realignment bid.

As a member of the bottom 35....thanks to all that contributed. My family and I appreciate all that you have done. Thanks again.

MD11Pilot

I think the MOU will mean a normal realignment bid. Not the Reduction In Force language that would ignore bid preferences.

But I haven't been to a Holiday Inn Express in some time, so don't take it from me !

Art. 14 comes into play when UPS parked all of the DC8's. They DO NOT have to have a Realinment Bid. Art. 14 says a RIF, or Reduction in Force. And UPS can do Art. 14 if it wants to.