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An Appeal To UPSer's From FedEx Drivers
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<blockquote data-quote="quadro" data-source="post: 270254" data-attributes="member: 12850"><p>I'm not going to debate with you about whether I'm right or wrong. I presented you facts which you choose to ignore. Before you tell me I'm wrong, how about doing some research? Explain to me, how, under the new law, FedEx could afford to put $1.6Billion into the pension plan this year versus about $200mm under the old law? FedEx didn't make that much money (earnings, not revenue). And other prosperous companies can't continue to fund their traditional plans. Here's just one article from almost two years ago <a href="http://abcnews.go.com/WNT/Business/story?id=1484003" target="_blank">http://abcnews.go.com/WNT/Business/story?id=1484003</a>. Just Google Traditional Pension Plan and there's plenty of info. When other companies were switching to 401K's, FedEx kept its traditional plan until such a time that it simply couldn't afford to do it. And rather than switching to a 401K, FedEx has a pension plan <strong>AND</strong> a 401K.</p><p></p><p>I never said that FedEx was threatening to go out of business. Quite the opposite. FedEx did what it needed to do to still provide a benefit without a huge financial risk to the future of the company. Additionally, as I already told you, UPS essentially did the same thing. Why do you think they coughed up over $6Billion to get out of the Central States Fund and the Teamsters didn't bat an eye?</p><p></p><p>It wasn't that they took full advantage of the changes, if they hadn't switched, they wouldn't have been able to fund the traditional plan as required by law. How is that fiscally and ethically responsible to the employees?</p><p></p><p>Now it appears that it is you who doesn't really understand the situation at FedEx. That's OK. All I'm saying is that you should take the time to do some research and fully understand how it works. Only then can you make an educated and informed decision. FedEx isn't going to force you to contribute anything. Statistics show that a lot of people don't have enough saved for retirement and when offered a savings vehicle such as a 401K, they don't enroll. To help people make that decision, a lot (most?) companies are now doing autoenrollment. That is what FedEx is doing. If you don't want to do it, you can opt out. There's no forcing involved. If I'm not mistaken, most 401K's, by design, are employee funded. Also, the change to the 401K at FedEx actually improves the plan, not take away from it. If you put 6% of your salary into the 401K, FedEx will match 3.5% of your salary and put it in there. That's 3.5% of your pretax salary. <strong><em><u>And</u></em></strong> that's in addition to the money they put in the portable pension plan. Most companies have one or the other but not both.</p><p></p><p>We'll have to agree to disagree on this last part. FedEx isn't perfect, but which company is? However, lawyers look at any big company as potentially big payouts if they can convince employees that they've been wronged. Not that some people don't have legitimate lawsuits, it's just not quite the way you are seeing it.</p><p> </p><p>Do some research and educate yourself before you make a decision. Just remember to be careful what you ask for as you just might get it. Don't like the 401K and pension plan? No sweat. As soon as you are represented it is off the table anyway, as is everything else. You will need to negotiate it all back and you can bet that it won't all come back.</p><p> </p><p>I hope you get what you want. I just hate to see you get what you think you need.</p></blockquote><p></p>
[QUOTE="quadro, post: 270254, member: 12850"] I'm not going to debate with you about whether I'm right or wrong. I presented you facts which you choose to ignore. Before you tell me I'm wrong, how about doing some research? Explain to me, how, under the new law, FedEx could afford to put $1.6Billion into the pension plan this year versus about $200mm under the old law? FedEx didn't make that much money (earnings, not revenue). And other prosperous companies can't continue to fund their traditional plans. Here's just one article from almost two years ago [URL]http://abcnews.go.com/WNT/Business/story?id=1484003[/URL]. Just Google Traditional Pension Plan and there's plenty of info. When other companies were switching to 401K's, FedEx kept its traditional plan until such a time that it simply couldn't afford to do it. And rather than switching to a 401K, FedEx has a pension plan [B]AND[/B] a 401K. I never said that FedEx was threatening to go out of business. Quite the opposite. FedEx did what it needed to do to still provide a benefit without a huge financial risk to the future of the company. Additionally, as I already told you, UPS essentially did the same thing. Why do you think they coughed up over $6Billion to get out of the Central States Fund and the Teamsters didn't bat an eye? It wasn't that they took full advantage of the changes, if they hadn't switched, they wouldn't have been able to fund the traditional plan as required by law. How is that fiscally and ethically responsible to the employees? Now it appears that it is you who doesn't really understand the situation at FedEx. That's OK. All I'm saying is that you should take the time to do some research and fully understand how it works. Only then can you make an educated and informed decision. FedEx isn't going to force you to contribute anything. Statistics show that a lot of people don't have enough saved for retirement and when offered a savings vehicle such as a 401K, they don't enroll. To help people make that decision, a lot (most?) companies are now doing autoenrollment. That is what FedEx is doing. If you don't want to do it, you can opt out. There's no forcing involved. If I'm not mistaken, most 401K's, by design, are employee funded. Also, the change to the 401K at FedEx actually improves the plan, not take away from it. If you put 6% of your salary into the 401K, FedEx will match 3.5% of your salary and put it in there. That's 3.5% of your pretax salary. [B][I][U]And[/U][/I][/B] that's in addition to the money they put in the portable pension plan. Most companies have one or the other but not both. We'll have to agree to disagree on this last part. FedEx isn't perfect, but which company is? However, lawyers look at any big company as potentially big payouts if they can convince employees that they've been wronged. Not that some people don't have legitimate lawsuits, it's just not quite the way you are seeing it. Do some research and educate yourself before you make a decision. Just remember to be careful what you ask for as you just might get it. Don't like the 401K and pension plan? No sweat. As soon as you are represented it is off the table anyway, as is everything else. You will need to negotiate it all back and you can bet that it won't all come back. I hope you get what you want. I just hate to see you get what you think you need. [/QUOTE]
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