Fed Expectations

[MD Dan]

The job action (no one actually goes on strike anymore), the job action was about the pension fund as I recall. Would you like to pay for your neighbor's kid's college education? UPS did not want to put money into a general fund for the benefit of all Teamsters. UPS wanted to pay just for UPS teamsters and UPS wanted to manage the fund's investments. No more funding the building of casinos in Nevada. I could be wrong but that is how I recall it.

My take on it was that UPS wanted out of the multi-employer defined contribution plan and wanted to replace it with a defined benefit plan which could be much cheaper and would allow UPS to control the money. UPS was offering $3000 a month after 30 years. My local (639) pension is much better (if I recall $4500/month in '97 and over $6000 today.)