UPS to take pre-tax charge on new labor contract

Discussion in 'UPS Discussions' started by Returntosender, Apr 25, 2014.

  1. Returntosender

    Returntosender Well-Known Member

    United Parcel Service Inc. on Thursday said that it will record a $1.05 billion pre-tax charge in the second quarter as it moves the remaining 125,000 unionized package delivery employees off its own health-care plan and into multi-employer health-care plans.
    The move will fundamentally change the way UPS pays for its union members' health plans. Instead of being committed to providing benefits on UPS's own plan, it will now pay funds into multi-employer health-care plans, union-run plans that are financed by the workers' employers.

    The change will help the company to avoid benefit costs that were expected to increase at about 8% each year, UPS said. During a conference call with analysts on Thursday, Chief Financial Officer Kurt Kuehn said that the company had already factored the costs--and the charge--into its earnings forecast for the year.
  2. Mr Shifter

    Mr Shifter Active Member

  3. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Major upfront hit but after 5 or 6 years, UPS should break-even on the deal.
    Meanwhile, the Unions and their healthcare plans are boosted up another few years.
    Under the plan, UPS will transfer a total of $2.27 billion to the three multi-employer health-care plans to which its employees are moving. The shift will also allow it to remove about $1.2 billion in retiree health-care liability from its balance sheet.
  4. brownmonster

    brownmonster Man of Great Wisdom

    This should hold everything until the Republicans replace Obama care with their plan. Oh that's right, they don't have one.
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  5. Wally

    Wally Hailing from Parts Unknown.

    Not having one, sure is better than Obamacare.
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  6. Dragon

    Dragon Package Center Manager

    I would hope there is some serious oversight on the part of the Teamsters on who and where this money is being spent.
  7. joeboodog

    joeboodog good people drink good beer

    The Teamsters misusing funds? That's just crazy talk.
  8. bottomups

    bottomups Bad Moon Risen'

    My local has had two union reps and two from UPS overseeing both Health and Pension funds for years. Would have to think that the UPS reps would raise any red flags for any mismanagement.
  9. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The funds are taken very seriously----there is no co-mingling.
  10. HBGPreloader

    HBGPreloader Active Member

    Comments like this really crack me up because it really shows the ignorance of the left.

    It just so happens that there were at least 4 other proposals to obamacare that received both bipartisan and republican support, as noted by this article...

    Still on the Table?
    Republican and bipartisan health care proposals may be up for discussion at Obama's summit. What are the details of these plans?
    • Posted on February 22, 2010
    So, what about those Republican health care plans?

    Contrary to claims made by some Democratic detractors, detailed GOP proposals, and a bipartisan bill with several GOP cosponsors, do exist. And they’re scheduled to get attention at a half-day, televised "summit" meeting at Blair House on Feb. 25, with President Obama presiding and lawmakers from both parties attending.


    So, now that we know the true damage of obamacare, with the total cost now expected to exceed more than $2 trillion dollars, the real question is why did reid and pelosi block these bills from being introduced on the floor and debated?
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