UPS, Pilots’ Union Reach Agreement

UPS Inc. and its pilots’ union said they have reached agreement that will avoid the immediate furlough of 300 UPS pilots.

Earlier this year, following the company’s review of its volume reductions and a stated need to furlough pilots, the Independent Pilots Association’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. The union has identified savings totaling about $90 million pending final calculations, UPS said in a statement Monday.

Although the full three-year goal was not reached by the original June 2, deadline, the two have agreed there will be no furloughs through April 1, 2010, and that the IPA will continue to work this year to produce additional savings.

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

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