UPS, Teamsters considering joint pension plan

Discussion in 'UPS Retirement Topics' started by Channahon, May 15, 2007.

  1. Channahon

    Channahon New Member

    Good or Bad News???

    Posted: May 14, 2007, 5:46 PM EST

    United Parcel Service of America Inc., Atlanta, and the International Brotherhood of Teamsters, Washington, would create a joint UPS-Teamster pension plan “to cover full-time UPS employees who currently obtain their pension benefits from” the $20.7 billion Teamsters Central States, Southeast & Southwest Areas Pension Fund, based in Rosemont, Ill., according to a statement from the IBT.

    “The current proposal would create a plan jointly administered by UPS and the International Brotherhood of Teamsters with an equal number of Teamster-appointed and company trustees,” the statement said.

    Van Skillman, president and co-founder of the Association of Parcel Workers of America, a new union that is undertaking a campaign to replace the Teamsters as the UPS labor representative, said he understands the UPS proposal would cover all 21 of the multiemployer Teamster jointly trusteed plans covering UPS employees, including the $30.2 billion Western Conference of Teamsters Pension Trust Fund, Seattle, and $3.4 billion New England Teamsters and Trucking Industry Pension Fund, Burlington, Mass.,

    UPS would pay $4 billion in withdrawal liability to the Teamsters fund, Mr. Skillman said.

    UPS proposed in 1997 contract negotiations that workers could withdraw from Teamster plans and UPS would create a new pension plan for its Teamster employees, but the Teamsters opposed the idea and UPS didn’t pursue it,
    Norman Black, UPS spokesman, told Pensions & Investments last February.
    Mr. Black said UPS officials wouldn’t comment about the negotiations. Mark Angerame, CFO of the Central States fund, didn’t return a call for comment. Galen Munroe, Teamsters press secretary, said the IBT would not comment beyond its statement.
  2. sendagain

    sendagain Member

    Like most legal jargon, an interpretor is needed to spell out exactly what is being said in common sense terminology. I will have to wait for the interpretation, because I don't have a clue as to what this really means.
  3. Dutch Dawg

    Dutch Dawg Active Member

    If this information is contained in this article I surely missed it.

    What's the source for this press release?

    The APWA is referred to as a union in this article. I guess I didn't realize they had obtained union certification, when and where did that occur?
  4. Ms.PacMan

    Ms.PacMan Well-Known Member

    I have 12 yrs, 18 left, began driving at age 27. Along with buying us out of the multi-employer fund, rumor has it that UPS wants to reinstate the 25/30 and out at any age but would ask that we take lower or no raises in the future for a yet to be determined timeframe.

    So this is how it works out for me......

    1)Assume identical raises to last contract for this contract,and next, and next (18 yrs). I will make $24,960 in raises, straight 40hrs.

    2)Assume no raise for the next 18 years but I retire at 57 with $3000/month vs. losing 6% for 5 yrs and retire at 30 yrs with $2683.53. I will make back the $24,960 in 6.5 yrs if the pension reverts to 30 and out with no raise ever again.

    Lots of variables I know but I think raise concessions would only last maybe one contract and we would still get cost of living increases. Everyone is different depending on years of service and the age they started (No flaming or brow-beating, work your own numbers), this make not be a deal for some.

    For me I like this option better than running the risk that the pension ends up in PBGC or switching unions.
  5. Channahon

    Channahon New Member

  6. UPS Lifer

    UPS Lifer Well-Known Member

    The source of the article is the "".

    One of the best things for both the company and the employees is to get out of the multi-employer pension plans. I guess the cost to UPS to pull out would determine if it will happen. With all that is happening out there, employees need to feel that their pension is secure and that there will be money for them when they retire. Let's all hope that this is real and that the union is negotiating with the company. The real winners will be the employees...just ask anyone involved in the Central States fund....
  7. dragracer66

    dragracer66 Active Member

    It's basically the same thing that we have with the IAM. The only people that would contribute and recieve a pension is only UPS employee's nobody else. This would help out the central state's tremdously unfortunately it wouldn't help those who are retired now. Ron Cary and his tough guy ego blew this for you guy's in 1997 don't let it go this time around!!!
  8. JonFrum

    JonFrum Guest

    Anything is possible, but I doubt the Teamsters said in a press release that they *would* create such a plan. They are probably only evaluating what UPS proposed at this point.

    I also doubt Van Skillman said the proposed plan applied to all 21 Teamsters/UPS pension plans when it, in fact, and the mandatory $4 billion-plus Withdrawal Liability payment, only applies to the UPS full-timers in the Central States pension plan.

    The official anouncement of Teamsters' negotiator hall, and a TDU response is here. . . .

    A discussion thread of the proposal in BrownCafe's UPS Labor Relations forum is here. . . .
  9. 705red

    705red Browncafe Steward

    Lifer of course you think this is agreat idea, arent you retired management? It sounds great now, but what happens in 25 30 years when ups isnt the big dog in shipping anymore. Lets say you have 130,000 drawing a pension but only 40,000 paying into it, we will be revisiting another pension crisis, because as a single employer fund no one else can help float it for our retirement. Now id dhl became the big dog in shipping then dhl would be floating our pension under a muli-employer, just rough examples so dont jump on me over it. Its got good short term fix written all over it, not that hot for long term.
  10. dragracer66

    dragracer66 Active Member

    You guy's have this problem now with all these defunct trucking companies. Just to name a couple: Preston:Consolidated Freight: St' Johnsbury Red Star Express: who do you think is paying there pension? You guy's are that's who, they are taking out of the big pot every month and none of these companies are around anymore to replenish it. Parcel has been around 100 year's there is no guarantee they will be on top forever but the are no guarantee's in life either. I'm in the IAM we have a single contribution pension. If Penskie or New England Motor Freight go out of business it won't drain our pension. It's really not a bad idea, especially if your in the central state's pension fund they should be praying for it:thumbup1:
  11. JonFrum

    JonFrum Guest

  12. 705red

    705red Browncafe Steward

    Cs pension is screwed and im not sure how to fix it. But im also aware that if we go to a single employer fund theres a potential for another serious pension crisis down the road. Your right that we and other teamsters are picking up the slack for out of business companies that closed, and that we have more members drawing than paying. But what happens under ups's plan when more members are drawing then paying, where can we turn for our pension then? Or what happens if ups one day decides to get rid of small package? Just questions no one can see into the future.
  13. dragracer66

    dragracer66 Active Member

    In most case's with a single funded pension fund the company will invest the money and the interest will pay the contribution's so basically in reality the pension fund is 100% funded, not the 39% that the teamsters are now. There are some companies in my union that haven't contributed in year's because of the investment's they made and they are 100% funded.
  14. 705red

    705red Browncafe Steward

    Let me ask you if you call and or write to your plan will they give you all the numbers, how much is in the fund? whats the growth rate of the fund? etc.
  15. dragracer66

    dragracer66 Active Member

    I can view that info anytime on the IAM website.
  16. 705red

    705red Browncafe Steward

    Thank you, let me ask you how often do you change trustees? How are the trustees made a trustee, vote, appointed or other? That fund is only for the mechanics and no one else?
  17. dragracer66

    dragracer66 Active Member

    I honestly don't know the exact answer to that but I do know that it's all done on a national level and we do get to vote them in.
  18. 705red

    705red Browncafe Steward

    Any idea how many trustees for each side? How many members in your plan?
  19. Fullhouse

    Fullhouse Member

    Have to organize DHL First! Hell, we can't even organize Fed Ex and they just received cuts on their retirement this year. Maybe the IBT can go pick the peaches, because it sure looks ripe in the orchard.
  20. 705red

    705red Browncafe Steward

    Really? You might want to change your name to half a deck instead of full house! In the chicago area dhl belongs to the teamsters, and from my understanding were not the only city. Now if their not teamsters in your neck of the woods i apoligize now. Organizing fedex is an up hill fight and im surs your aware of the railway act that freds under. They have made strides in some parts of the country, but in order to organize fedex you have to break it down state by state which is time consuming. I will agree with you we should have organized fed ex by now, and leveled the playing field. But how many customers are we losing due to fedex, i see more customers leaving ups over the business development reps and being fed up with routes getting busted out, changing their schedules to fit our ie depts numbers. Most of the business i see leaving tends to go to dhl not fedex.