If this is a legitimate request in tough times and you don't want to make a career-breaking issue out of it, this may be a thought: Some airlines have two economy fare tiers for upgrading: one for full/near-full fare, upgradeable for relatively few miles, and one for discount fares, upgradeable for a lot more miles. Suggest a compromise: they pay for a less expensively upgradeable fare, and you'll put in the miles to upgrade that one.