Whats the Master Plan?

[Pasaholic]

Now that UPS has gotten there dream by getting out of the central states mess, what will the future hold with all those bilions UPS will now save?
Are they going to finally start a price war with FredEX and kill that bug/?

[55andout?]

Originally Posted by Pasaholic

Now that UPS has gotten there dream by getting out of the central states mess, what will the future hold with all those bilions UPS will now save?
Are they going to finally start a price war with FredEX and kill that bug/?

Central States is only one of the corrupt pension programs that UPS pays into. It will take some time to get out of all of the multi-employer pension funds. Central states was just the largest I believe but not the only one.

Originally Posted by 55andout?

Central States is only one of the corrupt pension programs that UPS pays into. It will take some time to get out of all of the multi-employer pension funds. Central states was just the largest I believe but not the only one.

Believe it or not, the last paragraph of the National Master Contract just approved actually says:

Memorandum of Understanding
United Parcel Service, Inc. (Ohio and New York Corporation), as a demonstration of its commitment to maintaining jointly administered Teamster pension benefit plans, and to enhance the long term stability of pension coverage for its employees represented by Teamster Local Unions, agrees that for a period of ten (10) years from the effective date of the National Master Agreement, it will not solicit any signatory Local Union to change pension plans, either by proposing such change during future negotiations of the National Master Agreement or by encouraging its employees to advocate withdrawal from participation in their current pension plan.
http://www.teamster.org/divisions/pa...upplements.htm

[BrownBlackandBlue]

Getting out of Central States doesn't save any money in the short term, what it does is gets UPS out of a huge future liability that had the potential to make UPS a mirror image of General Motors and their troubles. It also returns integrity and viability to our people's pensions which is a great thing.
By the way, does anyone know when the 6 B is transfered to Central States? I think that would be a good time to short UPS stock.

Originally Posted by BrownBlackandBlue

. . .By the way, does anyone know when the 6 B is transfered to Central States? I think that would be a good time to short UPS stock.

Too late to short UPS stock! Potential investors familiar with ERISA and Withdrawal Liability knew UPS owed a bundle for some time now. The debt was kept off the books until recently. But with all the publicity, now the cat's out of the bag. Everyone knows. I do wonder though, how many stockholders didn't realize UPS owed well over a year's profit just to Central States, not to mention what it owes to many of the other pension funds?

The target date to switch to the new pension fund is Dec. 26, 2007 so the $6.1 big ones would be due about Feb. of 2008. I wonder if the delivery will all fit in one feeder? Even a 53-footer.

[tieguy]

Originally Posted by JonFrum

Believe it or not, the last paragraph of the National Master Contract just approved actually says:

Memorandum of Understanding
United Parcel Service, Inc. (Ohio and New York Corporation), as a demonstration of its commitment to maintaining jointly administered Teamster pension benefit plans, and to enhance the long term stability of pension coverage for its employees represented by Teamster Local Unions, agrees that for a period of ten (10) years from the effective date of the National Master Agreement, it will not solicit any signatory Local Union to change pension plans, either by proposing such change during future negotiations of the National Master Agreement or by encouraging its employees to advocate withdrawal from participation in their current pension plan.
http://www.teamster.org/divisions/pa...upplements.htm

Won't have to . The new laws kicking in will force pension plans to cut benifits until they are fully funded. I wouldn't be surprised if you see multi-employer plans slashing beni's all over the place.

[brownman15]

Originally Posted by tieguy

Won't have to . The new laws kicking in will force pension plans to cut benifits until they are fully funded. I wouldn't be surprised if you see multi-employer plans slashing beni's all over the place.

no they don't law goes in effect 2008 but have time for pensions to be funded i glad that was but in so ups cannot get my local 705 pension which is much more secure than cs

[RockyRogue]

Originally Posted by brownman15

i glad that was but in so ups cannot get my local 705 pension which is much more secure than cs

I don't blame you for being glad, Brownman. But, I hate to burst your bubble. I saw numbers posted here recently for ALL the plans--804, 177, 705 and the conferences (Central States, Western, etc). The 705 pension? I think it was about 60% funded, according to those numbers. Anybody remember this post? -Rocky

[BrownBlackandBlue]

Originally Posted by BrownBlackandBlue

Getting out of Central States doesn't save any money in the short term, what it does is gets UPS out of a huge future liability that had the potential to make UPS a mirror image of General Motors and their troubles. It also returns integrity and viability to our people's pensions which is a great thing.
By the way, does anyone know when the 6 B is transfered to Central States? I think that would be a good time to short UPS stock.

Stock was about $75 at that time, now it $67. Subtract out the dividend and you could have made $7500 for every 1000 shares you shorted. Who says you can't make any quick money with UPS stock?

[FAVREFAN]

Originally Posted by BrownBlackandBlue

Stock was about $75 at that time, now it $67. Subtract out the dividend and you could have made $7500 for every 1000 shares you shorted. Who says you can't make any quick money with UPS stock?

LOL, funny but not really if you own it. Stock isn't down on the $6.1B. It's cyclical and down on bad economic news just like everything else is.

By withdrawing from the Central States Pension Plan the company is planning to save big money by full-timers retiring earlier since they restored the service pensions. That means they will end up replacing all these top scale employees with fresh blood (non-crippled) workers, that will have to now go through a three (3) year progression before topping out. For example, if a package car driver retired in August of 2008, and that resulted in a part time employee going driving then the company would save big money.

Company savings based on these averaged work weeks for three year progression period.

40 hours 45 hours 50 hours 55 hours 60 hours
$66,544.80 $74,862.90 $83,181.00 $91,499.10 $99,817.20

These do not take into account for vacation pay, so actual values would be slightly different.

[DS]

[quote=Anonymous GearJammer;288144]By withdrawing from the Central States Pension Plan the company is planning to save big money

Company savings based on these averaged work weeks for three year progression period.

40 hours 45 hours 50 hours 55 hours 60 hours
$66,544.80 $74,862.90 $83,181.00 $91,499.10 $99,817.20

quote]
These numbers are eye opening,if 10 old farts retire,they save almost a million dollars over 3 years.