UPS, Pilots’ Union Discussing Cost Cuts

UPS Inc. is in talks with one of its unions to attempt to avoid potentially laying off 300 pilots, about 10% of its total, Bloomberg reported.

UPS could hear from the Independent Pilots Association by next week on whether the union can find ways to reduce pilot expenses by $40 million this year, UPS spokesman Norman Black told Bloomberg.

The company will furlough 300 pilots unless the two sides can agree on a plan, Bloomberg said.

The U.S. recession has cut demand for air shipments that provide the company’s greatest revenue per package, Bloomberg reported.

First-quarter revenue from UPS’ domestic air deliveries fell 15% from a year earlier, while sales from international air shipments dropped almost 17%, Bloomberg said.

UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.