Management Buyout Update?

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tarnsman

Guest
Does anyone have an update on how the management buyout at Corporate went? I think the deadline has passed for deciding.
...My source says that just less than 200 people accepted the offer...The feeling is that one way to move the stock in a positive direction is to restructure the management retirement plan...Looks like management 50 years and over will be offered 30,000 for every year at UPS ...This will go into the individuals annuity & will include medical...The people under 50 will have their pension years frozen and be able to increase their 401k matching up to 6%.......Traditional pensions are going away for management sooner than later........Im curious as to when the Teamsters follow suit....
 

nhguy

Well-Known Member
Tarnsman,

Where are you getting your figures from? Everything you say has been rumored for sometime, just curious where you got that $30,000 / year figure.

Have you heard anything as to a time frame????
 
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Tarnsman

Guest
Tarnsman,

Where are you getting your figures from? Everything you say has been rumored for sometime, just curious where you got that $30,000 / year figure.

Have you heard anything as to a time frame????
The time frame will be from April 1 to August 28 ...Each month a grouping of oldest (55 & up) then down to 50/51......UPS wants to avoid the mass summer exodus that happened in the original ...
 

nhguy

Well-Known Member
Tarnsman,

You still didn't answer where you got the $30,000/yr figure. I have to question this dollar amount. They are not going to offer every level the same amount so that a sup with 30 years is going to get the same as a dm with 30 years? I think the formulas that were thrown about earlier this year make more sense to me! I only hope that your right!!!!!!!!!!!
 

paganpink

Well-Known Member
Are we talking April of this year? And will the money placed into the "annuity" be all that the retiree is due or in addition to the regular pension amount? I don't understand how this will be structured. Lastly, how likely is this??:blushing:
 
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Tarnsman

Guest
Are we talking April of this year? And will the money placed into the "annuity" be all that the retiree is due or in addition to the regular pension amount? I don't understand how this will be structured. Lastly, how likely is this??:blushing:
....The 30k figure is deemed the fairest amount for all...The idea was that the Division Managers and above have been able to reap the huge benefits of their options which their lower status partners do/did not have access to.........The annuity replaces the pension with the advantage that the annuity will carry over to the persons family once the primary dies.....................Im hoping this takes place so that the older management people will retire thus making room for people like me to grow with the company.......The promotions have been very few due to the management jam........Many great people ( under 35 years old) are frustrated by this and are looking for careers outside UPS.......I certainly hope that CEO Big Mike starts to act like a CEO and makes some decisions that benefit the company long term............Im surprised at his audacity of accepting his ( & the Boards) annual pay increases while we do not even keep pace with inflation.......I guess that their pay increases have to come from some where & why not from the lower management.....During Big Mikes tenure the Company has lost 20% of our net worth.....The stock value has declined in real money just over 20%..........
 
U

uhuhuhuhuh

Guest
During Big Mikes tenure the Company has lost 20% of our net worth.....The stock value has declined in real money just over 20%..........

That’s going to be your future with Mike or without.

Get used to it because you’re going to face stagnation and decline until UPS fundamentally changes their business strategy or files for bankruptcy.

If you’re under 35 and have 6/8/10+ years experience in management at UPS and have skills that can be applied outside your industry you should start shopping your resume NOW. IMO, of course.

In the majority of cases people are happily surprised at the result. VERY happy in most cases.

Your UPS managerial stint is solid GOLD to any company out there. Try it.

If you choose to stay at UPS you’re a glutton for punishment, IMO.

Way too many ex-UPSers now “working” for the competition and don’t mind watching UPS sink to the bottom of the ocean – and they’ll “help” to whatever degree they can. I know I will.

I’ve headhunted 27 UPSers for other companies to date. I know UPS and I know who they have and who is excellent talent for another company and (more-or-less) know what their qualified candidate replacement pool looks like.

You complain about a management jam – but “management jam” isn’t going to be solved by a silly buyout because they just have to be replaced at a premium.

Meanwhile, “management jam” will take care of itself between now and 2017 with no buyout or other gimmicks required.

My observation is that you’re in the “potential” candidate pool – not the “qualified” candidate pool. Big difference.

That’s a problem (not a Mike problem) because in the day of the mega-center and mega-district and mega-region (going to one, eventually!) it’s sink or swim.

And they know you’re not ready to swim that far that fast or they’d have already promoted you (at least here).

UPS isn’t just faced with internal politicking. Not anymore. Now they have outside people – familiar with their operations and staffing – that are more than happy to plink from the sidelines.

My prediction is that they go under despite trying to un-friend themselves WRT Teamsters. Just too little and too late. Plus, we’re making gobs of money at UPS’ expense.

That’s how that goes.

Don’t say nobody warned you.

You’re going to lose volume, you’re going to lost staff, you’re going to lose market share – but the bright side is you’re going to lose Teamsters.

Win/win (and the best part is that I can sell a block of FDX that cost me $48/share and buy TWO new houses to rent to temporarily-assigned managers at a REAL company that isn’t intimately involved with a criminal enterprise known as “Teamsters” (IMO, again) LOL.).

You’ve got a REAL tough road ahead of you. But good luck!
 

Cezanne

Well-Known Member
Sounds alot like a disgruntled UPS ex-supervisor who got issues with the teamsters. Imagine he works for Fed-ex now and is spreading his love, enough said:cool:
 

Channahon

Well-Known Member
Are we talking April of this year? And will the money placed into the "annuity" be all that the retiree is due or in addition to the regular pension amount? I don't understand how this will be structured. Lastly, how likely is this??:blushing:

A friend of mine took the buyout. A cash payout is made in installments, and your retirement pay is cut in half, assuming you are leaving before your are 55.

If you are disciplined with your money, not a bad deal.
 
D

Do the math

Guest
Suppose a magement person makes 5k per month and their pension at 55 is about 60% of their current pay and they are expected to live to 78 (average exp).

$5000 x .60 x 12 months x 23years life= $828,000 cost of pension payments.

30 k for each year worked sounds like a good estimate.

The pension is fully funded. No cost to UPS to liquidate by pay out.

Future savings by reduced contribution to 401.

Teamsters (overall)get .40 benefit of their contribution of approx 12k per year. UPS can increase the benefit to the employee and reduce the cost by 6k per year per employee by cashing out and starting 401k style plan.

Huge savings. Win win.

Other plans to follow. IMO...
 

nhguy

Well-Known Member
Channahon,

Can you elaborate on your friends package? How many installments are we talking about and over what period of time? Did your friends package include a $30,000 / year of service as part of the total payoff. Or is it a 50% cut in your pension and then "x" amount of dollars paid over several installments?
Anything you can add would be appreciated.
 

messenger

New Member
I don't believe in any package outside the SCS deal from December. They are sure assisting folks out that door but yu dont want to see that package.
 

Channahon

Well-Known Member
Channahon,

Can you elaborate on your friends package? How many installments are we talking about and over what period of time? Did your friends package include a $30,000 / year of service as part of the total payoff. Or is it a 50% cut in your pension and then "x" amount of dollars paid over several installments?
Anything you can add would be appreciated.
The payout is over a 2 year period, every 6 monhts. He had over 30 years, and the $30,000 sounds right based on what he will receive. The payout comes first and then at retirement age of 55 he will get 50% of what his pension would have been. All stock options are to be exercised as well. Along with RSU's and RPU's.
 

dumbsup

Active Member
Anyone know what will happen to the pensions of those that were vested but have left UPS. I have a freind that was here for 15 years and was a supervisor for 14. Will he get a lump sum payout?
 
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