Why?

Read the above post.

Training has just now started, classes haven't started to overlap. Yes, we are contracting with outside vendors, but it is my opinion that from a quality assuarance standpoint we will have better success with being trained in our facilities by our own instructors. Spoken frankly, IMHO we receive better quality training with our instructors at our training facility than at outside vendors. I have nothing against contract sim instructors, but UPS instructors know UPS procedures better than the majority of outside contractors

Management pilots will be called upon to do flying to maintain schedule. This will have a slight effect on line training.

In ANC on the 747-400 we are advertising for Instructors. Most F/Os on the airplane will be furloughed thus creating a vacuum to retrain a half of a fleet. The fact that they are advertising suggests they are in need of instructors. Not many are applying because they feel why should they help the company facilitate the training of furloughee replacements.

In my personal situation, I was sent an email telling my to sign up for UPS sponsored SPT training because "first officers were losing currency". I was given three training dates. I submitted my preferences, and was told they could not afford to take me off line to go to training because they can't cover my trips. Roberto, I doubt that my situation is unique and I will abide by the IPA's guidance to train on day's off if not required.

144 re-training events is quite a bit IMHO. Additionally, regular scheduled re-current training will be on-going. For the sake of example, to send ANC based pilots to San Jose or Denver to sit sim support costs the company days of travel.

You may disagree but I think the RIFF is a large training event that as it progresses will disrupt the company's efforts to staff the airline. And unless we can avert further reductions, 130 more pilots will be released next year triggering a similar training event.

FF

We've been to that dance before with TWA, United, and Natco (NWA). I wouldn't call any of them low quality by definition, but they are handicapped by different procedures and histories. The training has never been as good when we go off campus like that.

Sometimes management will blurt out the truth too:

The greatest sin of airline management of the last 22 years is to
say, "It's all labor's fault."

- Donald Carty, Chairman and CEO American Airlines, 12 August 2002.

Very good points. It is just a little dismal to see all of the company bashing, union bashing and pilot bashing. They have all made their share of gross mistakes but we are all in the same boat, get along or swim. Without strong profits, a lot of us are going to get wet.

Perception is vital to a company, and they have decided it is best now for them to assume a defensive posture. How long this lasts depends on many things and almost all of them are well beyond our control or the control of the company.

Is it fair, is it right? Not much is, but that is what happens when you man the oars on the boats that ply the sea of uncertainty.

Old Con Carty...left the integration of the TWA pilots into the American Airlines seniority list to John Darrah, President of the Allied Pilots Association. It was a slaughter.

Then he convinved all the unions to take double digit paycuts associated with concessionery contracts in 2003 while awarding himself and a handful of Management types with millions in bonuses.

I believe anything Don tells me.
Smart, yes. Honest...hmmmmm.

Just one person's opinion...

FF
Former TWA, still on furlough 7 years later.

ps. Hope retirement is treating you well...

Jungle,

I see your point, and like many of your posts it has a lot of validity. UPS' success bodes well to our external customers, be they consumers or shareholders.

I guess my frustration is when I look at companies that do well, most try to take care of their employees first and in turn it creates a positive environment to foster profits.

I see your point and I'd bet vice versa...let's just hope for the best and batten down the hatches at the same time.

FF

Wait-a-minute, I was a TWA F/E Check Airman. Did I just make fun of myself ?

Back to my cave..therapy sucks.

FF

Jungle,

Obviously I'm not at Brown, and furthermore, I usually agree with most of what you say here. However, that said, your statement above is a bunch of bunk. How can you possibly say that "How long this lasts depends on many things and almost all of them are well beyond our control or the control of the company." A bigger question might be: do you actually believe your own statement?

Perception, like beauty, is in the eye of the beholder. So I guess that any time UPS wants to furlough, all they have to do is say that their perception is that they need to tighten their belts some more. As well, if it's not in the control of the company, as you suggest, whose control is it in? No, I believe that everything that you IPA guys are going through is directly within the control of your company, and as with the vast majority of major companies, there is absolutely nothing that you or anyone else can do about it. The same can be said for FedEx, although for whatever reason, FedEx seems to have a slightly different perception of the future.

Regardless, I wish you guys all the luck in the world, especially those facing furlough.

JJ

Profit = Revenue - Expenses

If we start from that basic premise (which every 10 yr old on the streets of Calcutta understands to be true), we get a clue how "the market" has improved significantly off its lows while unemployment (and underemployment) remains near historical highs. Corporations have been increasing profit by decreasing expenses (through payroll reductions -- layoffs/furloughs, increased efficiencies, etc.)

UPS has decided they can jump on this bandwagon by cutting pilot payroll. What complicates the discussion for us is: nearly $1B profit is for UPS overall, not the airline. They don't publish individal financials for each profit center, so it's tough to tell how 'profitable' the airline is. Clearly, Atlanta has some metric they use (which they don't and aren't required to publish) and have determined they can make the airline more profitable through furlough. Maybe.

Or maybe they realize they can't and it's a scare tactic to open the contract. Time will surely tell which it is.

As mentioned earlier, GAAP allows a fairly wide lattitude in how companies mark profit (depends largely on how/when they take expenses). Revenue, however, is much more difficult to "fake" and those that have tried have actually ended up in jail, occasionally. The "increasing profit by decreasing expenses" model only works to the point where genuine inefficiencies are rooted out of the system. Going beyond that impacts revenue (missed service, lost market share) and profit is also reduced.

Realize, UPS only spends the minimum they have to on pilot payroll (or any other expense for that matter). There is no charity involved. Don't think for a second they wouldn't go the Nike route and replace all of us with cheaper Chinese or Indian pilots if they could get away with it. The ONLY things stopping them are legislative restrictions and union contract. To a for-profit corporation, the only "right" thing to do is make more money.

The question is: does a furlough make them more money or not? If it does, I can't object (even as a first round cut) from a business standpoint. If, however, it can't and they realize it and are only playing the IPA for contract concessions, the badwill sewn by this action will cost the company for years to come as immature people like me hold a grudge until the day I hang up the chart bag. They're potentially creating 300 new '88ers with respect to loyalty to the company, and I doubt anyone in Atlanta has calculated the net present value of that. Unfortunate for them and us.

Sorry, I don't deal in bunk. Bunk is doing the same thing over and over and expecting a different outcome. Bunk is running a business into the ground and then blaming labor. Bunk is thinking business is a charity.
Bunk is holding management responsible for the economic climate and dreaming they won't respond to it.
It can be very difficult to look outside our little ship, to look outside our little struggle and understand that what is going on outside may have far greater effect than our little internal spats.
Pilots are a valuable resource, they won't waste them without reason, nor will they buy more than they need.