Where does the drivers back pay interest go

[Dweezel]

So for our union local we were expecting a .80 hourly raise in august. With a average of 45 hours a week that would be a extra $40.00 times that by the number of weeks since the raise and that's $1280.00 per driver.
I'm guessing at the number of drivers, but if it's 200,000 full time drivers for the US. That would equal 256,000,000.00 at 5% interest that's 12,800,000.00 that the company will pocket whenever the contract gets settled.
So basically the company is making mad interest off of our back wage increase and then pocketing it. No wonder they don't want to settle.
And no this does not take into account compounding interest or part timer pay imcrease.


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[Irishman Collins]

Dweezel, that is it in a nutshell. They dont care.

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[UPSGUY72]

So for our union local we were expecting a .80 hourly raise in august. With a average of 45 hours a week that would be a extra $40.00 times that by the number of weeks since the raise and that's $1280.00 per driver.
I'm guessing at the number of drivers, but if it's 200,000 full time drivers for the US. That would equal 256,000,000.00 at 5% interest that's 12,800,000.00 that the company will pocket whenever the contract gets settled.
So basically the company is making mad interest off of our back wage increase and then pocketing it. No wonder they don't want to settle.
And no this does not take into account compounding interest or part timer pay imcrease.


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First of all your math is wrong from the beginning...

Second the national contract raise are

2013 seventy cents($0.70)
2014 seventy cents($0.70)
2015 seventy cents($0.70)
2016 eighty cents($0.80) This is a split raise
2017 one dollar ($1.00) This is a split raise

Third you an idiot if you think UPS doesn't want to settle because they are making chump change on interest. At any time they have $4-6 billion in cash on hand or in short term investment.

If you think they are putting the money they are not paying us in a seperate bank account to pay us later you are delusional...

 

[Inthegame]

First of all your math is wrong from the beginning...

Second the national contract raise are

2013 seventy cents($0.70)
2014 seventy cents($0.70)
2015 seventy cents($0.70)
2016 eighty cents($0.80) This is a split raise
2017 one dollar ($1.00) This is a split raise

Third you an idiot if you think UPS doesn't want to settle because they are making chump change on interest. At any time they have $4-6 billion in cash on hand or in short term investment.

If you think they are putting the money they are not paying us in a seperate bank account to pay us later you are delusional...

You need to learn how to stop beating around the bush and give a straight answer....

 

[UpstateNYUPSer(Ret)]

If you think they are putting the money they are not paying us in a seperate bank account to pay us later you are delusional...

You are the delusional one as this is exactly what they are doing.

 

[Dweezel]

Umm our contract raise was .80 in august 2013. Not gonna list the local it doesn't matter. Just seems like a win win for UPS financially. You would think they would use the interest cash to add to the contracts that are unsettled. But seriously, several million in interest each month isn't chump change and could be used to improve contract negotiations for the locals that have the outstanding issues. Even better yet dump it into retirement funds. Technically the money isn't theirs, it's ours, since the money was made from our back wages.


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[UPSGUY72]

You are the delusional one as this is exactly what they are doing.

The only reason they would be doing it is if they was a chance that they wouldn't have the money to pay what they owed in back pay. There would be no other reason to and if the union made them put the money in a separate account it would be an non interest bearing account.

 

[cachsux]

If we haven't approved it how can we be owed it? Be glad they'll go retro in paying it at all.

 

[UpstateNYUPSer(Ret)]

Why would the account have to be zero interest? There are all sorts of short-term, interest bearing investments available.


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[UpstateNYUPSer(Ret)]

If we haven't approved it how can we be owed it? Be glad they'll go retro in paying it at all.

They have no choice---unless they offer a flat fixed payment as was suggested earlier.


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[UPSGUY72]

If we haven't approved it how can we be owed it? Be glad they'll go retro in paying it at all.

The National contract has long been passed just not implemented when it get implemented we are owed back pay raises from the date the contract was suppose to go into effect.

There are area that haven't passed there local riders / supplement and than there are those area's that have a separate "national contract" with UPS that I not sure about.

 

[UPSGUY72]

Why would the account have to be zero interest? There are all sorts of short-term, interest bearing investments available.


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IF the teamster made UPS put the money it would be in a no interest bearing account otherwise we would be entitled to the interest gained. That if the teamsters required the money to be put into a separate account. I don't see that as happen and since technically the money isn't our until the contract is implemented and that hasn't happen yet. Once the contract is implemented UPS will pay us the back pay in full as it becomes rightfully ours at that point no before that point. Untill the contract gets implemented UPS is free to do what ever they want with that money as it's not ours...... If it was you could sue UPS for withhold money from you......

 

[Wally]

I think they are investing the funds into fixing ORION.

 

[3 done 3 to go]

UPS is re investing the interest for more stock. Making money on our money. Laughing all the while.

 

[upschuck]

In a separate account or not, they are making money off our money. On the books I guarantee that it is in the debts column. They may not be the smartest when implementing new ideas, but in accounting, they have the best.

 

[UpstateNYUPSer(Ret)]

When I first started and direct deposit was not an option I was told that UPS had 2 primary banks that they used for payroll, one on each coast, and that they paid their East Coast employees from the West Coast bank and vice versa, making money off of the time it took for the checks to clear.

 

[brownmonster]

I would like to find a place to make a guaranteed 5%.

 

[Catatonic]

They have no choice---unless they offer a flat fixed payment as was suggested earlier.

If all the supplements and local agreements are never passed by the time of the next contract, then legally, UPS owes nothing on raises in a contract that never went into effect.

 

[PiedmontSteward]

I think they are investing the funds into fixing ORION.

Those pissed off PT'ers were right.. we're never gonna get our retro checks!!

In all seriousness, the money is probably sitting in some sort of low-yield and highly liquid escrow account. They can't really use it to make investments as there would be relatively short notice (~1 month or less) for distribution after ratification. No one (except for the company) knows for sure.

However, all of the H&W contributions do not have to be made retroactively. That's money TeamCare is missing out on and won't get back. I'm not sure what happens to the UPS Company Plan once everyone currently enrolled (almost all PT'ers and some FT'ers) is cleared off the books and moved into TeamCare.

 

[UPSGUY72]

If all the supplements and local agreements are never passed by the time of the next contract, then legally, UPS owes nothing on raises in a contract that never went into effect.

There are only a handful of supplements and local agreement not passed. Some are and the rest will get last and file offers and then the company will implement them and they those locals can vote to strike of or not if not they take what they get in the last and final offer....

By the end of the year things will be wrapped up one way of the other... Either the local vote yes or the company implements the last and final offer... Forcing the local to only having the option to vote for a strike or not....