Hey all. This current contract says that ups cant change or challenge the current pension rules for 10 years. Do you all know what Im talking about? Now, with some parts of the country receiving very good pensions, ie western conference, mechanics, midwest, etc, and other plans not as good, do you think in 10 years ups will try to equal out what everyone gets by rolling all these funds into one? Also, drivers who still have 20 or so years with the company will be collecting more than drivers who are retired or soon to retire in 5 or less years because the pension contributions of the last 3 or 4 contract have been much higher than drivers who started in the 70-80's. Even though cost of living will be higher in 20 years thus us making more money, I bont believe ups will consider this and would like everyone to continue year after year to get the same as the central states 3000 dollars??? Is this number right. Whats a 3000 pension going to be worth in 20 years....jack. So lets lower western conference pension and pump that into central states to raise their allowance. Can this be done, are there any pension laws that discourage this. Also, there was talk about subtracting social security from the pension payment, this was shot down for now, but could reappear in future contracts...is this legal to do also. Any comments or anyone who is more aware of pension laws please chime in!
Good topic Coldworld,
I've been wondering the same thing myself, some posters have already stated that combining funds would be illegal, i don't know that to be true or not. I do know that congress can change the rules.....
However, it seems to me that a "promise" by UPS not to go after any more funds for 10 years is a guarantee that they will go after some in the future. As a teamster in the west, the last thing i want is to see my good pension compromised. I've got 14 years to go, so thats 2-3 more contracts for me. Many of my friends have 20+ years left. The best thing i can do for myself (and my fellow teamsters) is get involved and educated on the situation. Teamsters.org and TDU.org are both informative sites (as well as the brown cafe), i've also recieved interesting insight from talking to some of the freight teamsters (ABF) they seem to be more educated and involved in the union-at least out here in loc 104.
So, to answer your other questions, yes ups will go after more funds, they will keep chipping away at them relentlessly, because it saves them more $$$ in the long run to fund a company run plan. They will illustrate the differnces btween funds around the country (divide and conquer). They will illustrate how their $3k/month sounds better than the $1k/mo you'll get from the gov. when your fund goes bankrupt, etc. Fear tactic? yes-plausible?...only if we keep letting them buy their way out of pension funds. CS is likely to run out of $$$ faster now, the $4.9 bil from ups only buys a little time. The fund will deplete at a faster rate now, and the worker/retiree ratio just got a lot bigger. Fortunately those educated freight teamsters i was telling u about kept their companies from buying out of CS in their current contract negotiations.
I do feel bad for the folks in CS, thru no fault of their own the fund got screwed and then the 2006 pension reform bill forced ups' hand on this latest contract. (Whether ups really wanted this pension reform-to "force their hand"-i'm not smart enough to know. I know the teamsters were lobbying against it.)
Is it fair i get a good pension and others don't? no. Should i be a nice guy and give them some of my pension to make it fair? no. Should the employee always be the last priority for profits sake? no, not in this business. What i should do is get educated/involved and fight my a@@ off to keep my good pension/benefits. I should pay attention to what labor/pension laws the house is trying to pass. I should pay attention to what the teamsters, TDU and the company is telling me. Then filter it all and decide what really is best for me. I should pay attention to what my pension fund managers r doing with my money. Are they raising or cutting the multiplier and why? I should talk to the fedex ground guys and help the teamsters organize them. That helps ups and us in the long run. I should educate the partimers (and full timers) who don't sign up in this sorry right-to-work state about how important their union involvement is.
Finally, i should reduce my debt, increase my investments and make sure my family is protected because as always, whatever happens in my world, good or bad is usually a direct result of what i did or didn't do.
and now..back to my world, of which the vast majority occurs, thankfully, on the other side of cyberspace. peace.