Union Fund Exit Would Cost UPS Up to $4 Billion
Transport Topics Online
By Daniel P. Bearth, Staff Writer
This story appears in the May 28 print edition of Transport Topics.
UPS Inc., which is negotiating to leave the underfunded Teamsters Central States Pension Fund, would have to pay about $3.6 billion to $4 billion to cover its share of the fund’s obligations, according to industry sources.
Teamsters officials said the parcel giant has offered to create a new, jointly administered, company-funded pension plan for full-time employees to replace the existing plan. The company would pay an unspecified lump sum to withdraw from Central States, but would continue to contribute to other Teamsters pension and health and welfare funds (5-14, p. 1).
Van Skillman, president of the Association of Parcel Workers of America — an association of UPS employees that seeks to replace the Teamsters as bargaining agent there — said UPS would pay $4 billion to Central States, the largest of more than two dozen multi-employer pension and health and welfare plans that provide benefits to employees at unionized trucking companies..........