UPS Negotiations Update: Company and Central States Reach Tentative Agreement

Discussion in 'UPS Discussions' started by Interested watcher, Aug 2, 2007.

  1. August 2, 2007
    The following is a letter to all Parcel and Small Package Division locals from Chairman of the Teamsters UPS National Negotiating Committee James P. Hoffa and Co-Chairman hall:
    The Teamsters National United Parcel Service Negotiating Committee has been advised that UPS has reached an agreement in principle with the Central States Pension Fund establishing conditions for a potential UPS withdrawal from Central States. The specific terms of the agreement are being finalized by the Company and Fund. As you have been advised, these matters are strictly between the Company and Central States. Neither the Negotiating Committee nor the International Union has any authority or legal right to participate in those negotiations.
    It is important for it to be clearly understood that whatever agreement has been reached between Central States and UPS cannot be implemented unless it is accepted by the Negotiating Committee and ratified by the members. In short, the existence of the agreement between Central States and UPS does not mean that UPS is free to withdraw from Central States and establish a new, jointly administered Teamster pension plan for its employees. We have said from the beginning that we will not accept a proposal for UPS to withdraw from Central States unless we are satisfied that it would be in the best interest of all Teamsters who are participants in that Fund, not just the UPS employees. While we await official notification of the terms of the settlement, we continue to evaluate the effect on the future of Central States. We repeat what we have pledged before. The Negotiating Committee will not accept a new UPS contract that does not protect the retirement and health benefits of our members whether they are employed by UPS or by the many other companies that participate in the Central States Fund.
    When negotiations were suspended, we indicated that we were prepared to return to the bargaining table once the Company is prepared to submit a comprehensive economic proposal for our consideration. That has not yet occurred, although we are hopeful that the agreement with Central States will permit the Company to draft an economic package that will satisfy the needs of all Teamster benefit funds and protect all of our members.
    We will continue to advise you of developments as they occur so that you can keep your members informed and respond to their questions.
  2. scratch

    scratch Least Best Moderator Staff Member

    This sounds like to good news to me if we can get out of Central States. Of course my opinion could change when all the details are worked out. I hope I'm not going to get three pension checks. One from UPS for my part-time years, a second one from CS, and a third from the proposed Teamster/UPS Plan. I am working on my 32nd year and am 49 years old. I'm ready to go out as soon as I can!
  3. GuyinBrown

    GuyinBrown Blah

    Unfortunately, from what I've gathered, that's exactly what we'll both be looking at Scratch. And the IBT better be careful about blocking any exit from the CS plan that would benefit UPS employees. Should they try, I foresee a dramatic increase in APWA membership...
  4. Braveheart

    Braveheart New Member

    I hear it will be three checks as well. I just hope there are real choices at 20, 25, and 30 and out!
  5. scratch

    scratch Least Best Moderator Staff Member

    I have 6.75 years credit for the eight years I worked before I went full time. One of the contracts had some kind of "Reciprocal Language" in it. I called Corporate and was told about the 6.75 credit over the phone, but when we get our yearly Benefit Statement, it is never listed. I started working when I was seventeen, I should have about thirty years of combined credit now.
  6. 705red

    705red Browncafe Steward

    Scratch does the union or ups hold your ptime pension?
  7. Cezanne

    Cezanne New Member

    Would imagine that scratch's vested part time years would under the company plan if he is in the Central States fund (Atlanta, GA). I believe all those part time years are counted toward your retirement eligibility. With the current reciprocity agreement you would not get much of anything monetary out of the company plan.

    If this buyout does happen, I would expect that the newly created UPS/Teamster pension and health and welfare retirement benefits would fall somewhere close to the "97" company offer. The difference would be that the Teamsters would have a say to any changes or supplements that the company may impose on it's union workforce.
  8. scratch

    scratch Least Best Moderator Staff Member

    Cezanne is correct. The part time credit is in a UPS Plan.
  9. 177member

    177member Guest

    Be careful entering any UPS\Teamster jointly controlled plan. There are two currently from Locals 804 in New York and 177 in New Jersey that are under attack from UPS for decreases. Local 804 recently lost 30 percent and the Local 177 plan is in front of an arbitrator for similar cuts. Be very weary of giving any control of your plan to UPS. Their goal is to abolish all pensions for UPSers.
  10. Coldworld

    Coldworld Well-Known Member

    scratch, since your in atlanta area, do any of the folks from corporate ever come out to visit.
  11. 705red

    705red Browncafe Steward

    Deal to Weaken Pensions All But Official
    > Hoffa has all but made it official that he intends to let UPS rip
    > 42,000 Teamsters out of the Central States Pension Fund--a move that
    > would undermine the security of all Teamsters at UPS.
    > Our union entered early bargaining to win pension and benefit
    improvements. We
    > can and must do better than this.
    > In an Aug. 2 letter, James Hoffa and hall have made it official:
    "UPS has
    > reached an agreement with the Central States pension establishing
    conditions for
    > a potential UPS withdrawal from Central States."
    > They go on to claim that the deal is a long way from final, and they
    > "protect our members" in bargaining with UPS. But they wouldn't be
    going through
    > all this if they weren't trying to soften us up to accept the deal.
    > It's up to us to stop it.
    > In 1997, UPS tried to take control of our pension fund. Teamsters
    said "NO" and
    > united, we won record pension increases. We can do it again. UPS is
    > pressure from shippers and stockholders to settle our contract early.
    This gives
    > our union leverage and we need to use it to win retirement security
    and other
    > contract improvements.
    > Just three weeks ago, Hoffa and hall said the number one issue in
    > was "improving the stability of the benefit funds upon which our
    members rely
    > for health care coverage and retirement protection."
    > Now, Hoffa and hall apparent surrender on the pension issue--a year
    before our
    > contract expires--is a clear warning to every UPSer that we need to
    get involved
    > now to stop our negotiators from settling short like they did in
    > If Hoffa and hall are willing to give in to UPS on pensions without
    any fight,
    > then what does this mean for other key issues like excessive
    > supervisors working, full-time job creation, stronger rights for
    combo workers,
    > wage increases, raising the part-time starting rate, and other union
    > UPS Teamsters can't afford another "Best Contract Ever."
    > Pension Deal Would Hurt All UPSers
    > Under the law, UPS would be required to pay some $6 billion dollars
    > withdrawal liability to Central States. In return, UPS would get to
    walk away
    > from the fund forever and set up a joint UPS-Teamster pension plan
    for the
    > 42,000 Teamsters in the Central States.
    > Two funds just like this already exist covering New Jersey and New
    York City.
    > UPS recently demanded big pension cuts in both of these funds. They
    > pension accrual rates by 30 percent in New York. The New Jersey fund
    is only 52
    > percent funded--worse than Central States. The New York Fund's
    > returns are much worse than Central States--and have been for a
    > These are UPS-Teamster plans just like the company wants to set up in
    > Central States--and they are cutting benefits. This puts the lie to
    > company's claim that Central States Teamsters would be better off in
    a UPS plan.
    > The UPS pullout will not just hurt Teamsters in the Central States.
    UPS will
    > offer less in the contract, after shelling out billions to split our
    > fund.
    > Don't Let Our Union Settle Short
    > If you're happy with the "Best Contract Ever" and not worried that
    Hoffa and
    > hall will settle short again, then your job is easy: do nothing.
    > But if you want to protect your retirement security and win a better
    > contract, it's time to get involved. The right to vote on our
    contract gives us
    > power if we're organized to use it.
  12. 705red

    705red Browncafe Steward

    What do you get per ptime year? Here its $45 a month for years of service.
  13. scratch

    scratch Least Best Moderator Staff Member

    705red, I wish I knew those details, but I don't. If its anything like you have, than $45 extra per year might mean three hundred bucks a month at retirement time. That will help a little.

    As far as Mike Eskew or somebody like that, I haven't noticed him in my Hub. I remember one morning someone was in my CMs office with a lot of strange suits in the building, but I didn't see who it was. We have had a couple of people come down from Corp to work as Center Managers. Maybe they wanted to see what a Package Car is?:wink: I noticed one guy hanging around the office for several months. I didn't know who he was, so I went up and introduced myself. He was my Center Manager. Nice guy, he works in Corp doing Legal stuff last I heard. We had another center manager leave about a month ago, she was from Corp too. I was impressed with her, she would walk around on the Preload and say encouraging things to the Preloaders. She is very nice, great communications skills and treated people well. I have a 6:30 start time so I miss PCMs. My present On-Car Sup worked in Corp as an intern TSG. He knew what was happening with that Dept. and got out a few years ago and went into Operations. Great guy, I enjoy working with him. Friday I got word that my present center manager is moving, possibly to Corp. I have one of my old On-Cars moving up into his place. Both are good guys, they have always treated me with respect. I have a very good reputation as far as doing my job, I don't have any problems with my current management team.:innocent:
  14. 705red

    705red Browncafe Steward

    Scratch look in your contract and see what it says. In our contract its spelled out under article 22!
  15. Cezanne

    Cezanne New Member

    705red and Scratch,

    The 55 dollars per part time years spelled out under master language only applies to those part timers who obtain the required vested time to collect a full pension. Anybody who went full time under Central States and left the company plan do not get the same monetary credit. Scratch's part-time credit under the UPS Pension Plan is subject to a percentage of a thirty year pension at the time he left that trust. Again the formula would be 6 percent of roughly 1,000 dollars considering the time when he went into the Central States fund. Doing the math that would be 60 dollars, but wait that considerable amount is subject to a 6 percent per year deduction for every year prior to age 65. So if he wanted to retire at the standard age of 55, just reduce that 60 dollars down to about 25 dollars a month for those part time credit years.

    For some in the Central States trust I do have problems with people quoting TDU dogma without the know how or means of correcting our underfunding problems. 705red I believe that you under a joint pension plan with UPS within the Chicago local, how is it doing now? Like I have said before most of us under the Central States trust wants more than empty dogma, we want solutions and answers. I have issues with people whose future is secure just offering their pity or an attitude of "it sure sucks being you?"

    Here is one of the dangers that most of us are facing under these endangered trusts. If most of us with UPS are forced to work till age 62 a considerable ratio of us will leave due to a permament disability. The very nature of the union work, physically and long and demanding work hours is wearing our bodies down. No matter how well you do the safe work methods there will be a time when father time demands it toll. We face it every time at work, will this be the day when something happens, when it does I have seen far too many good people basically thrown into the street with the company and the union turning their backs with the common thread of nothing we can to. Just what good is a full pension if you are not healthy enought to enjoy it. That is what we are facing here folks. Whether it is planned or happen to chance and circumstances, who knows. An early retirement is a must with this contract, most of us with over thirty years just want to get out in one piece and get another job with less demands on our bodies and family. Is that so much to ask?:crying:
  16. nhguy

    nhguy New Member


    You sound like Ron Carey in disguise!!! That kind of talk and thinking is way in the past. It's quite clear to me that the company is only trying to protect it's employees. Our drivers work hard for their money and they deserve to have a good pension when they retire. It's not UPS'S fault that for every ten people drawing out of the fund, only 5 are putting into it. (My numbers are not factual only an example, but it's the same situation as social security will be in down the road)

    You die hard teamster supporters are always knocking the companys management because they get stock, matching 401k contributions, dividends, pensions, and retiree medical benefits. You need to show some trust in the company that writes your check every week. UPS doesn't have a mindset that it is their ultimate goal to screw every employee they have working for them.

    If the company acted like the teamsters we would all be out of work in a year. The teamsters are in no position in this contract to demand anything. All of the pension funds are losing ground and it's not because UPS is trying to screw anybody. If you really think about it, maybe the powers to be had seen this coming back in 1997 and at that time tried to prevent this situation from coming to a head as it has 10 years later. Give the guys that run this company some credit, we wouldn'y be around for 100 years if somebody didn't know what the hell they were doing.

    You need to move on from the 1980's!!!


    The Number To The Ups Penion Plan For All Part Time Workers Is 1-877-851-2499.
    The Girl On The Phone Is Very Good With Questions And Will Mail You A Printout In The Mail Of What You Have And What You Will Get When You Retire.
    Hope This Helps With The Questions.
  18. 705red

    705red Browncafe Steward

    Cezanne first of all i am not a tdu supporter! I would be if they would preach the good within the teamsters instead of only the negatives!

    We in 705 are under a seperate multi-employer fund that is around 80% funded. We (UPSERS) also receive a retirement bonus of $1,000 per year lump sum (30 years = $30,000) or 108 per year towards our monthly pension ( 30 yr = $3,340 per month). All other participants are not entitled to this extra payout or pension increase.

    Im not in cs and that decision will be upto those of you when the time comes. The problems i do have with the single-employer pensions are, what happens if you leave ups and need say 5 years for your pension? Where can you go to receive that credit? Nowhere! What happens when the day comes and ups is not the big dog anymore and only 50,000 are paying into a fund that has 700,000 drawing from it? If a single employer is more sound then why do the 2 other funds (new york n new jersey) have the same problems as cs?

    Just a concerned upser sitting on the sidelined trying to take it all in and asking some of the hard questions, trying to assist your cs'ers in making an informed decision.
  19. GuyinBrown

    GuyinBrown Blah

    If the Teamsters screw us out of being removed from the CS plan I'll pay for Van and Danny's plane tickets up here.
  20. 705red

    705red Browncafe Steward

    I have just asked you cs pensioners to get all youe questions answered and to become informed before you make your decision on switching pension plans thats it. Now if your mind is already made up before you get all the facts on the new pension than im sure you will be back on here in a couple of years crying that ups and the teamsers sold you out!