United Parcel Service (UPS) is off 33 cents, or 0.6%, at $56.88, after the company this afternoon announced its efforts to avoid layoffs of its pilot staff have failed to find enough cuts. Hence, the company has announced it will furlough 300 pilots while continuing to try and avoid outright layoffs.
Furloughs are to start in May with 170 individuals initially.
UPS president Bob Lekites remarked in a statement,
Even though the economy has begun to turn around, UPS anticipates a very gradual recovery and a continued need for belt-tightening. This is a painful decision for our people, but one that is right for the on-going health of our business. But we haven’t given up on this process. We continue to go well beyond our contractual obligation to seek a ‘win-win’ solution to avert furloughs.
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