August 2, 2007 http://www.teamster.org/07news/hn_070802_5.asp The following is a letter to all Parcel and Small Package Division locals from Chairman of the Teamsters UPS National Negotiating Committee James P. Hoffa and Co-Chairman hall: The Teamsters National United Parcel Service Negotiating Committee has been advised that UPS has reached an agreement in principle with the Central States Pension Fund establishing conditions for a potential UPS withdrawal from Central States. The specific terms of the agreement are being finalized by the Company and Fund. As you have been advised, these matters are strictly between the Company and Central States. Neither the Negotiating Committee nor the International Union has any authority or legal right to participate in those negotiations. It is important for it to be clearly understood that whatever agreement has been reached between Central States and UPS cannot be implemented unless it is accepted by the Negotiating Committee and ratified by the members. In short, the existence of the agreement between Central States and UPS does not mean that UPS is free to withdraw from Central States and establish a new, jointly administered Teamster pension plan for its employees. We have said from the beginning that we will not accept a proposal for UPS to withdraw from Central States unless we are satisfied that it would be in the best interest of all Teamsters who are participants in that Fund, not just the UPS employees. While we await official notification of the terms of the settlement, we continue to evaluate the effect on the future of Central States. We repeat what we have pledged before. The Negotiating Committee will not accept a new UPS contract that does not protect the retirement and health benefits of our members whether they are employed by UPS or by the many other companies that participate in the Central States Fund. When negotiations were suspended, we indicated that we were prepared to return to the bargaining table once the Company is prepared to submit a comprehensive economic proposal for our consideration. That has not yet occurred, although we are hopeful that the agreement with Central States will permit the Company to draft an economic package that will satisfy the needs of all Teamster benefit funds and protect all of our members. We will continue to advise you of developments as they occur so that you can keep your members informed and respond to their questions.