National Master United Parcel Service Agreement
For the Period: December 19, 2007 through July 31, 2013
Article 34 --- Health & Welfare and Pension
Section 4 Re-allocations of Contributions/Wages
The Teamsters UPS National Negotiating Committee may re-allocate designated increases in Health & Welfare and/or pension contributions (HWPC) and/or general wage increases (GWI) provided in this Agreement in accordance with the following rules:
1. Thirty-five cents ($0.35) of any GWI may be re-allocated as an increased contribution to a Teamster Pension or Health & Welfare Fund. The re-allocation shall apply to all employees in a Supplement, Rider or Addendum, as applicable, provided all of the affected employees (full or part-time, if applicable) are covered by the same Pension or Health & Welfare Fund.
2. Twenty-five cents ($0.25) of a HWPC may be re-allocated as a GWI. The re-allocation shall apply to all employees in a Supplement, Rider or Addendum, as applicable, provided all of the affected employees (full or part-time, if applicable) are covered by the same Pension or Health & Welfare Fund.
3. Once a re-allocation becomes effective, it may not be changed.
4. A specified HWPC cannot be re-allocated to a GWI if the pension fund has been certified as being in endangered or critical status (as defined in ERISA section 305 (b)(1) or (b)(2).
5. The Employer must be notified of any re-allocation, in writing, at least thirty (30) days
prior to the effective date of the GWI or HWPC.
Memorandum of Understanding
Teamsters United Parcel Service Negotiating Committee (Union) and United Parcel Service Inc. agree that pursuant to the past paragraph of Article 34, Section 1(a), the maximum amount of a general wage increase that will be reallocated to a pension contribution is thirty-five cents ($0.35). The parties will not implement any reallocation of GWI to pension contributions in excess of thirty-five cents ($0.35) without mutual agreement by the parties and subject to it being ratified by the affected employees.