February 10, 2010, UPS has been working with its union, the Independent Pilots Association, for the past year to identify ways to cut operating costs to avoid any pilot furloughs. However, UPS announced plans to furlough at least 300 of its airline pilots, but at the same time continue its effort to find a solution with the pilots' union that would avert or mitigate the layoffs before they take effect. UPS employs about 2,800 pilots. 

Last June, the IPA identified significant savings through voluntary programs such as pilots taking short- and long-term leaves of absence; military leaves; job sharing; reduction in flight pay guarantees; early retirement, and sick bank contributions. UPS subsequently agreed it would not furlough any pilots in 2009.  

Most recently, UPS announced on January 8, it was streamlining its entire domestic U.S. small package structure, eliminating 1,800 management and administrative positions across the country. "Companywide, we will continue to evaluate all opportunities and make adjustments as necessary to ensure our company is well-positioned to emerge stronger than ever as the economy continues to recover," said Lekites. "We applaud our pilots for the way they've joined with UPS in trying to tackle this problem and hope we can identify a mutually beneficial outcome." UPS is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide.