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<blockquote data-quote="JonFrum" data-source="post: 816499" data-attributes="member: 18044"><p>When employers, includeing UPS, paid their contractually negotiated contributions into the Central States Pension Fund, that was not the end of their responsibility. If the Fund was only say, 70% funded, the cumulative negotiated contributions represented only a 70% payment, the remaining 30% was still legally owed. Thus, when UPS negotiates the contribution rates, and tries to keep them low, it knows it is underfunding the Fund, and is legally liable for a sizeable Withdrawal Payment should it seek to leave the Fund. That 's why when UPS "generously" offered to pay $4 billion to withdraw from the Fund, the Fund said, ah, excuse me, but you legally owe us $6.1 billion, and not a penny less. It was a debt UPS owed, not an "outrageous fine."</p><p> </p><p>Incidentally, If a 17 year old UPSer is covered by a multi-employer pension fund, and he gets Vested in five years, UPS guarantees that man's pension until he (and his surviving spouse) die. If he (or his surviving spouse) lives to be 97, that means UPS is legally responsible for 80 years. If UPS is still around and still a contributing employer, it is legally responsible for fully funding that UPSer's pension for the full eight decades. Any time the assets of the Fund drop below 100% during that period, UPS is legally obligated to make up the difference one way or another. This is why UPS abandoned the Fund and also orphaned those UPSers who, at the time, were retired, or seperated and awaiting retirement. </p><p>- - - -</p><p>The accrual rate for the new UPS/IBT plan is currently $147 toward your future monthly pension benefit. That's lower than any other Teamster-sponsored plan covering UPSers . The accrual rate for my New England Teamsters and Trucking Industry Pension Plan, which is in terrible financial shape, is $248, by comparison.</p><p>- - - -</p><p>UPS has made it almost impossible for the Teamsters to organize any new bargaining units into Central States. UPS withdrew, seriously damageing the fund. UPS kept UPS Freight out of the fund even as it allowed the Teamsters to organize the unit without objection. UPS and the Teamsters (and especially you) make it clear that any new bargaining unit will be organized not for their benefit, but to hamstring them as they compete with UPS. Their contributions to Central States would not be used exclusively for their retirement, but confiscated to make up for the fund's past losses. Who would join the Fund knowing such things?</p><p> </p><p>As an Olympic Sponsor, UPS fancied itself as a team of industrial athletes engaged in the spirit of Olympic competition. But their real inspiration is Tonya Harding. Win by crippling the competition.</p><p>- - - -</p><p>Trucking companies go out of business for lots of reasons, just like companies in other industries: de-regulation, over-regulation, poor management, high taxes, bad luck, costs of 9-11 and the ongoing threat of terrorism, etc. Not to mention having to compete directly or indirectly with UPS, the 800 pound gorilla in the room.</p></blockquote><p></p>
[QUOTE="JonFrum, post: 816499, member: 18044"] When employers, includeing UPS, paid their contractually negotiated contributions into the Central States Pension Fund, that was not the end of their responsibility. If the Fund was only say, 70% funded, the cumulative negotiated contributions represented only a 70% payment, the remaining 30% was still legally owed. Thus, when UPS negotiates the contribution rates, and tries to keep them low, it knows it is underfunding the Fund, and is legally liable for a sizeable Withdrawal Payment should it seek to leave the Fund. That 's why when UPS "generously" offered to pay $4 billion to withdraw from the Fund, the Fund said, ah, excuse me, but you legally owe us $6.1 billion, and not a penny less. It was a debt UPS owed, not an "outrageous fine." Incidentally, If a 17 year old UPSer is covered by a multi-employer pension fund, and he gets Vested in five years, UPS guarantees that man's pension until he (and his surviving spouse) die. If he (or his surviving spouse) lives to be 97, that means UPS is legally responsible for 80 years. If UPS is still around and still a contributing employer, it is legally responsible for fully funding that UPSer's pension for the full eight decades. Any time the assets of the Fund drop below 100% during that period, UPS is legally obligated to make up the difference one way or another. This is why UPS abandoned the Fund and also orphaned those UPSers who, at the time, were retired, or seperated and awaiting retirement. - - - - The accrual rate for the new UPS/IBT plan is currently $147 toward your future monthly pension benefit. That's lower than any other Teamster-sponsored plan covering UPSers . The accrual rate for my New England Teamsters and Trucking Industry Pension Plan, which is in terrible financial shape, is $248, by comparison. - - - - UPS has made it almost impossible for the Teamsters to organize any new bargaining units into Central States. UPS withdrew, seriously damageing the fund. UPS kept UPS Freight out of the fund even as it allowed the Teamsters to organize the unit without objection. UPS and the Teamsters (and especially you) make it clear that any new bargaining unit will be organized not for their benefit, but to hamstring them as they compete with UPS. Their contributions to Central States would not be used exclusively for their retirement, but confiscated to make up for the fund's past losses. Who would join the Fund knowing such things? As an Olympic Sponsor, UPS fancied itself as a team of industrial athletes engaged in the spirit of Olympic competition. But their real inspiration is Tonya Harding. Win by crippling the competition. - - - - Trucking companies go out of business for lots of reasons, just like companies in other industries: de-regulation, over-regulation, poor management, high taxes, bad luck, costs of 9-11 and the ongoing threat of terrorism, etc. Not to mention having to compete directly or indirectly with UPS, the 800 pound gorilla in the room. [/QUOTE]
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