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Company and teamsters have a tenative agreement taking over Central States ?
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<blockquote data-quote="JonFrum" data-source="post: 227775"><p>Wildgoose,</p><p>Your chosen title for this thread makes two very common errors. First, the tentative agreement is not with the Teamsters, it's with Central States.</p><p></p><p>Second, the agreement is not about "taking over Central States," it's about UPS paying the Withdrawal Liability that it owes to the Fund, should it cease making contributions some time in the future.</p><p></p><p>Why didn't you just go with the two titles the TeamsterDotOrg website used:</p><p></p><p>"UPS, Central States Reach Tentative Agreement"</p><p></p><p>or</p><p></p><p>"Company and Central States Reach Tentative Agreement"</p><p></p><p>The article itself makes clear the Teamsters were not a legal party to the agreement.</p><p> - - - - -</p><p>Incidently, the agreement should not be referred to as a "buyout." UPS would not be buying anything by paying its Withdrawal Liability. They would not be doing anything for the employees. The billions in payments would not get anyone any additional benefits. This is not part of contract negotiations. They would just be paying a debt that they have owed all along. It's like when you have a mortgage on your house. Part of you house is paid for, but the remainder is owed to the bank. If you decide to sell your house, the bank will want you to pay the remainder of the money you owe on your mortgage. You owed the money all along, but the bank didn't demand payment in full until you forced the issue by attempting to sell your house. Withdrawal Liability is a debt UPS owes to Central States that is triggered when UPS ceases to be a Contributing Employer. </p><p></p><p>With all the talk of Central States being so poorly funded, many fail to understand that UPS, all along, has had the legal obligation to guarantee full funding of every vested UPSer's pension. Just as all the other Contributing Employers have the same responsibility to pay Withdrawal Liability to cover their employees, should those companies withdraw. This is just one part of the way multi-employer pension funds are self-insured, in addition to the partial insurance provided by the Pension Benefit Guarantee Corporation. In a sense, your vested pension has been fully funded all along, although a portion of the money remained in UPS' coffers. If UPS should actually withdraw someday, they will have to pay that remainder to the Fund. </p><p></p><p>"Withdrawal" does not mean the withdrawal of any funds. It means ceasing participation as a Contributing Employer.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 227775"] Wildgoose, Your chosen title for this thread makes two very common errors. First, the tentative agreement is not with the Teamsters, it's with Central States. Second, the agreement is not about "taking over Central States," it's about UPS paying the Withdrawal Liability that it owes to the Fund, should it cease making contributions some time in the future. Why didn't you just go with the two titles the TeamsterDotOrg website used: "UPS, Central States Reach Tentative Agreement" or "Company and Central States Reach Tentative Agreement" The article itself makes clear the Teamsters were not a legal party to the agreement. - - - - - Incidently, the agreement should not be referred to as a "buyout." UPS would not be buying anything by paying its Withdrawal Liability. They would not be doing anything for the employees. The billions in payments would not get anyone any additional benefits. This is not part of contract negotiations. They would just be paying a debt that they have owed all along. It's like when you have a mortgage on your house. Part of you house is paid for, but the remainder is owed to the bank. If you decide to sell your house, the bank will want you to pay the remainder of the money you owe on your mortgage. You owed the money all along, but the bank didn't demand payment in full until you forced the issue by attempting to sell your house. Withdrawal Liability is a debt UPS owes to Central States that is triggered when UPS ceases to be a Contributing Employer. With all the talk of Central States being so poorly funded, many fail to understand that UPS, all along, has had the legal obligation to guarantee full funding of every vested UPSer's pension. Just as all the other Contributing Employers have the same responsibility to pay Withdrawal Liability to cover their employees, should those companies withdraw. This is just one part of the way multi-employer pension funds are self-insured, in addition to the partial insurance provided by the Pension Benefit Guarantee Corporation. In a sense, your vested pension has been fully funded all along, although a portion of the money remained in UPS' coffers. If UPS should actually withdraw someday, they will have to pay that remainder to the Fund. "Withdrawal" does not mean the withdrawal of any funds. It means ceasing participation as a Contributing Employer. [/QUOTE]
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