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<blockquote data-quote="moreluck" data-source="post: 210753" data-attributes="member: 1246"><p>After several rounds of negotiations, UPS and the International</p><p>Brotherhood of Teamsters (IBT) are taking a break from the National</p><p>Master sessions to deal with negotiations on the Supplemental Agreements</p><p>and to provide opportunities for vacation and personal time over the</p><p>July 4th U.S. holiday. Negotiations on the National Master are</p><p>scheduled to resume July 9. </p><p></p><p>We know you are interested in the talks and may be getting questions</p><p>about them as well. The following is a brief update on the negotiations</p><p>to date.</p><p></p><p>As a reminder, both UPS and the IBT felt that the issues before us were</p><p>important enough to warrant an early start to negotiations on a new</p><p>contract to replace the one that expires on July 31, 2008. Since talks</p><p>began late in 2006, contract proposals have been exchanged on both</p><p>economic and non-economic issues. In brief, the normal process of</p><p>bargaining is being followed and we expect this process to continue as</p><p>we work through topics and issues. </p><p></p><p>UPS entered these negotiations with two key issues in mind: protecting</p><p>the pensions of UPS employees in a very complex environment and</p><p>positioning the company to thrive in a new era where our competitors are</p><p>gaining strength and ground capacity, as well as some cost and</p><p>flexibility advantages. </p><p></p><p>On the pension issues, a survey conducted by the Teamsters earlier this</p><p>year confirms pension as a top issue. This is particularly true with the</p><p>Central States Pension Plan -- a plan that has a large number of UPS</p><p>employees. With new pension laws taking effect in January 2008, it is</p><p>essential to take steps to ensure that UPS employees receive the</p><p>pensions they have worked for and deserve. These new pension laws set</p><p>higher standards for pension plan funding as it relates to benefit</p><p>levels. This includes multi-employer pension plans to which UPS</p><p>contributes large sums of money on behalf of our employees. Achieving</p><p>this objective will require open minds and a willingness to entertain</p><p>new ideas, without subjecting the company to unsustainable financial</p><p>obligations. Both UPS and the IBT are working to see if there is a</p><p>viable solution. </p><p></p><p>At the same time, it is absolutely essential that we begin to position</p><p>UPS in our centennial year to prosper in the next 100 years. One large</p><p>challenge is that our competitors have labor cost structures that are</p><p>significantly lower than ours. We have been able to remain successful,</p><p>despite higher labor costs than most of our competitors, due to the</p><p>efficiencies of our integrated network and our skill in execution. Your</p><p>hard work in keeping costs in check is both recognized and appreciated.</p><p>But our future success is not guaranteed if we cannot manage costs</p><p>effectively. We have seen what has happened to companies that were icons</p><p>of their industries in steel, auto and aviation only to stumble badly or</p><p>go out of business because they failed to take steps to deal with</p><p>growing competitors with lower cost structures. UPS has always prepared</p><p>for and adjusted to changing market conditions. All UPS proposals are</p><p>designed to ensure UPS can continue to grow and prosper, and we are</p><p>discussing ideas with the IBT on creative solutions that will help us</p><p>grow our business and provide opportunities. </p><p></p><p>We also recognize the IBT has posted high-level updates about</p><p>negotiations on its web site. Additionally, other interested groups have</p><p>been publishing comments electronically and in print -- some of this</p><p>information is accurate, but much is inaccurate or speculation. We do</p><p>not intend at this point to respond to these inaccuracies unless they</p><p>affect negotiations or significantly confuse the facts or the solutions</p><p>in the final agreement. Speculation about what is being discussed at the</p><p>table will continue and likely increase. Please keep these rumors and</p><p>speculation in proper perspective. Remember, the only real solutions</p><p>will emerge over time at the bargaining table. At this stage, we must</p><p>remain focused on our business priorities and address the pension and</p><p>competitive issues as outlined above. </p><p></p><p>Should you be approached about the status of negotiations, we encourage</p><p>you to verbally share the key points outlined in this briefing -- that</p><p>the normal process of negotiations is being followed, that UPS and the</p><p>IBT are working toward solutions for employee pensions and for keeping</p><p>UPS competitive, and that we will not respond to any inaccuracies unless</p><p>it affects our negotiations at the table.</p><p></p><p>We hope this update helps you understand our current status, the key</p><p>issues, and the negotiating schedule. We will provide additional updates</p><p>to you on important topics as the negotiations progress. At the</p><p>appropriate time, we will provide detailed information to help you talk</p><p>with your people.</p></blockquote><p></p>
[QUOTE="moreluck, post: 210753, member: 1246"] After several rounds of negotiations, UPS and the International Brotherhood of Teamsters (IBT) are taking a break from the National Master sessions to deal with negotiations on the Supplemental Agreements and to provide opportunities for vacation and personal time over the July 4th U.S. holiday. Negotiations on the National Master are scheduled to resume July 9. We know you are interested in the talks and may be getting questions about them as well. The following is a brief update on the negotiations to date. As a reminder, both UPS and the IBT felt that the issues before us were important enough to warrant an early start to negotiations on a new contract to replace the one that expires on July 31, 2008. Since talks began late in 2006, contract proposals have been exchanged on both economic and non-economic issues. In brief, the normal process of bargaining is being followed and we expect this process to continue as we work through topics and issues. UPS entered these negotiations with two key issues in mind: protecting the pensions of UPS employees in a very complex environment and positioning the company to thrive in a new era where our competitors are gaining strength and ground capacity, as well as some cost and flexibility advantages. On the pension issues, a survey conducted by the Teamsters earlier this year confirms pension as a top issue. This is particularly true with the Central States Pension Plan -- a plan that has a large number of UPS employees. With new pension laws taking effect in January 2008, it is essential to take steps to ensure that UPS employees receive the pensions they have worked for and deserve. These new pension laws set higher standards for pension plan funding as it relates to benefit levels. This includes multi-employer pension plans to which UPS contributes large sums of money on behalf of our employees. Achieving this objective will require open minds and a willingness to entertain new ideas, without subjecting the company to unsustainable financial obligations. Both UPS and the IBT are working to see if there is a viable solution. At the same time, it is absolutely essential that we begin to position UPS in our centennial year to prosper in the next 100 years. One large challenge is that our competitors have labor cost structures that are significantly lower than ours. We have been able to remain successful, despite higher labor costs than most of our competitors, due to the efficiencies of our integrated network and our skill in execution. Your hard work in keeping costs in check is both recognized and appreciated. But our future success is not guaranteed if we cannot manage costs effectively. We have seen what has happened to companies that were icons of their industries in steel, auto and aviation only to stumble badly or go out of business because they failed to take steps to deal with growing competitors with lower cost structures. UPS has always prepared for and adjusted to changing market conditions. All UPS proposals are designed to ensure UPS can continue to grow and prosper, and we are discussing ideas with the IBT on creative solutions that will help us grow our business and provide opportunities. We also recognize the IBT has posted high-level updates about negotiations on its web site. Additionally, other interested groups have been publishing comments electronically and in print -- some of this information is accurate, but much is inaccurate or speculation. We do not intend at this point to respond to these inaccuracies unless they affect negotiations or significantly confuse the facts or the solutions in the final agreement. Speculation about what is being discussed at the table will continue and likely increase. Please keep these rumors and speculation in proper perspective. Remember, the only real solutions will emerge over time at the bargaining table. At this stage, we must remain focused on our business priorities and address the pension and competitive issues as outlined above. Should you be approached about the status of negotiations, we encourage you to verbally share the key points outlined in this briefing -- that the normal process of negotiations is being followed, that UPS and the IBT are working toward solutions for employee pensions and for keeping UPS competitive, and that we will not respond to any inaccuracies unless it affects our negotiations at the table. We hope this update helps you understand our current status, the key issues, and the negotiating schedule. We will provide additional updates to you on important topics as the negotiations progress. At the appropriate time, we will provide detailed information to help you talk with your people. [/QUOTE]
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