Kansas City Teamsters Speak Out On Central States Pension Fund

April 16, 2013: Three thousand Teamsters, active and retired, headed to the union hall in Kansas City. What sparked the monster turnout and what does it say about Teamsters and our pensions?

Over 250 people showed up at the Local 41 union meeting last Saturday. Another 3000 retirees showed up for a meeting that afternoon.

What sparked this monster Teamster turnout? A report from Central States Pension Fund representatives, after TDU broke the news that the pension fund and the Hoffa administration are lobbying to pass a new law that would allow Central States to cut pensions, including for current retirees.

The turnout shows that Teamsters in the Central States are deeply concerned. If you're one of them, keep reading.

Find out what Al Nelson, a top Central States administrator said about pension legislation that could lead to benefit cuts. And learn what Teamsters, active and retired, are doing to defend their pensions.

Kansas City, Here I Come

Teamsters turned out for the meetings in Kansas City in record numbers. They filled the hall. They filled the parking lot. Cars were parked on grass and all over the neighborhood. Police came to help unclog the traffic. Some 1500 retirees were able to get into the hall, while others had to be turned away.

Teamsters came for information. But it could be the birth of a movement, a movement to defend our pensions.

"We should have had media there, and invited Congressional people," UPS driver Wes Epperson told us. "We need busloads of Teamsters and retirees visiting our Congressional representatives, not just backroom lobbying by Pension Fund officials."

Epperson hit the microphone at the union meeting to question Al Nelson, the Benefits Services Director of the Central States Fund. 

Nelson started off with a routine report, noting the investment returns of the fund, etc. But the members' questions changed all that.  Here is what came out:

  • Nelson said that allowing UPS to pull out of Central States in 2007 was a mistake, and that the fund opposed it, but could not stop the deal between UPS and the Hoffa administration.

  • Nelson admitted that Central States and the IBT are part of the lobbying group behind the document "Solutions not Bailouts", which calls on Congress to enact a new law this year to allow “deeply troubled” funds (Central States) to slash pensions. 

  • When questioned, Nelson admitted that their plan is to cut all pensions across the board now, with the intention of keeping the fund solvent longer.

Some members dropped F-bombs, but the main discussion was respectful and driven by well-informed members concerned about their pensions. And Nelson gave them answers.

Pension Legislation Smoke & Mirrors

At the second meeting of the day, the one for retirees, Nelson was startled by the big crowd and eager to put the right spin on things. This time he said the Solutions not Bailouts document is not an official Central States position, but just an opinion paper by some individuals.

If you believe that, we've got some high-priced YRC stock to sell you.

The fact is that the pension coalition that the IBT, UPS, and Central States Fund have joined has hired lobbyists, led by former Congressman Earl Pomeroy, to get legislative changes introduced into Congress this year.  

Pomeroy recently told a conference of actuaries that the recommendations in Solutions not Bailouts "are being drafted into bill language, and an effort to engage legislative interest has already begun."

Nelson told the retirees that their pensions cannot be cut if they have already received 13 checks. Many retirees left the room, happy to hear that. But Nelson forgot to mention that this could all change if the Congressional action being pushed for by Central States, UPS and Hoffa gets passed.

Retiree Dave Scheidt questioned Nelson and told us that "It should be about solidarity. In my 32 years as a Teamster, we have stood up for each other. On the Overnite strike line, and lots of other times. We should be doing the same to defend the pensions of all Teamsters."

Every Teamster we spoke with commended Local 41 for sponsoring the meeting, and mailing a notice to all retirees, who otherwise would never have known about it.

Should your local do the same? All it takes is an invitation to the pension fund, a notice to stewards, and a mailing to all retirees.

Teamsters Taking Action

The massive meetings in Kansas City shows Teamsters care about their pensions. They deserve information and a plan of action that brings members and retirees behind legislation that protects our pensions.

Members in some cities are starting to ask their Local to organize a Teamster Pension Meeting with a rep from the Central States.

"We need meetings here in Memphis, as well as all across the Midwest and South," said Willie Hardy, a Local 667 retiree and TDU organizer. "Members need information, and we need a grassroots campaign to defend our pensions."

You can be a part of this movement to defend Teamster members' pensions. 

Contact TDU for help. We'll help you put together a petition for a Teamster Pension Meeting with Central States in your local. 

TDU will also be organizing rank-and-file meetings to inform members about pension legislation and what action we can take to defend our pensions.

There is also talk about forming a Pension Defense Committee for all Central States retirees and Teamsters. If you want to be part of the solution, click here to send a message to the TDU with your ideas or questions.

Comments

In 37 years, I have never seen so secretive, a contract negotiation as this one. No one knows anything, and it has made me come to the conclusion that a lot of bad things are coming down the pike at us. This new proposal of reducing pension benefits is just the beginning. Wait until the new contract comes out. Hold onto your seats folks....it's going to be a bumpy ride!

I still find it amazing that the IBT and UPS can pull this crap with a straight face. I completely agree with secretive talks author. It hasn't been this bad since the Jackie Presser fistful of dollar days.

I was a Teamster member from 1974 to 2005. I received a good pension and currently am drawing benefits. I can not get another job now if I tried. I worked hard for 31 years and was proud to be a union member and shop steward. One of problems with our pension is that in the St. Louis area they are letting companies be union but not making them join the central states pension plan. This has been going on for a long time. It's time the Teamsters stand up and let our voices be heard. Mr. Hoffa your father is probably rolling over in his grave knowing what you are trying to do now.

No doubt the trustees still go to their once a year all expenses paid fiduciary meeting so as to play golf and learn how to be good trustees. No doubt about their all out good intentions of looking out for those who paid their salaries past and present and whose monies have paid for their multiple pensions. All who have been appointed by the one who has given away everything that his name sake ever obtained and is not worthy of the dust of the formers shoes.

James Cousins
35 yrs retiree

I can"t believe they are doing this to us. MY husbsnd and I are both retired from Roadway Express.  What do they expect us to do. When you live on a fixed income and we are both in our late 60's what job can we get to compensate? All I can say is I guess bankruptcy is in our future God forbid We did not see all this coming. It was bad enough when they raised the insurance premiums from 50 dollars amonth for both of us to 300 and something apiece. I never had much faith in them anyway because of the way I was treated by them. If there is anything that we can sign or do about this please let me know. Thanks, Kate Rakestraw and Bobby Rakestraw. Local 135 out of Indy.

It seems yrc has the union just where they want them in their pocket. If the whole thing isn`t the biggest ponzi scheme ever I would be suprized. Have you seen any yrc true earnings statement`s in the last 6 months? Someone is filling their pockets.

As a former employee and shop steward of Preston Trucklines, when Yellow bought Preston we were told that we had nothing to be concerned with. 1 year and 1 day later Yellow closed Preston. I was then informed that according to the contract that this was legal for them to do and that we would not be dovetailed into their seniority list. We got screwed. We all had to start at the bottom anywhere we went. I went to Yellow started as a 10 percenter, $6.85 per hour less, no overtime, and only working 1 or 2 days pre week. After 10 years I had worked my way up to a decent shift and back to full scale only to find out that I was about to be cut again. Five or six years earlier Yellow bought Roadway Corp. They were about to close them and DOVETAIL their seniority list. I asked our local president what's up with that. According to the contract if the company runs another comany 1 year and 1 day the seniority list can not be DOVETAILED. He proceeded to tell me that this is Yellow, they can do what they want. As far as I am concerned if they mess with my pension because I am now retired and disabled, not able to drive at all, because of passing out with no warning. I will hire a lawyer and not only go after Cental States but I will be going after my local for missrepresentation. I for one will not stand buy and let A COMPANY ATTORNEY (HOFFA JR. ) screw me out of any more than he alreay has.

Teamster of 18 years
David Scott

Left to his own devices, Al Nelson is like the used car salesman in the TV ad. He'll sell you the nice looking used car but he won't tell you that it was full of water during last years' hurricane unless you show him the CAR FAX. If Al Nelson or another rep from the CSPF comes to your Local, make sure you do your homework and ask him the tough questions you already know the answers too. Teamster members need to hear the whole truth and nothing but the truth.

I WORKED FROM 1959 TO 1996. I WORKED ON THE DOCK AND DROVE IN THE CITY THEN ON THE ROAD. WHEN YOU SAID YOU DROVE A TRUCK IT WAS WITH PRIDE WHEN THE REAL JIMMY WAS ALIVE. RETIRED NOW ENJOYING THE FRUITS OF MY LABOR AS SHOULD ALL THE GOOD MEN AND WOMEN SHOULD. BUT IF THEY KEEP MESSING WITH OUR HARD EARNED PENSION THAN WE SHOULD GET OUT BROOM AND GET RID OF TRASH THAT ARE TRYING TO STEAL ALL WE WORKED FOR. WILL DO ALL I CAN TO HELP

                             PROUD TEAMSTER JERRY PAYNE

                               CINCINNATI OHIO

IT SEEMS PRETTY OBVIOUS TO ME WHAT IS GOING ON, THE EMPLOYEES OF CENTRAL STATES ARE BEHIND THIS, IF THE FUND BECOMES INSOLVENT IN APPROX. 12 YEARS AS THEY ARE PREDICTING, THOSE EMPLOYEES WILL BE OUT OF A JOB.  THERE IS NO REAL CONCERN HERE FOR RETIREES, IF THE EMPLOYEES CAN STRETCH THE MONEY OUT THEY WILL HAVE JOB SECURITY FOR MANY MORE YEARS.

you work hard doing back breaking work, giving all a fair day's work for fair pay for 30 plus years expecting only to receive the vested and promissed retirement benefit, so you can pay your rising costs, ei. food, gas, cost of living, and TAXES, before you die, only to be stomped on & sold out by someone whose main concern is thier job security.   Not even thinking how they even have thier job/employment to begin with....  We began united and strong, but it seems  now it is ALL ABOUT ME!!!!  At any expense  to better ??? ME FIRST....    come on,   we are all in this together,  so act / react that way.....   lets unit and be HEARD... TKS

If central states is deciding to reduce pension cuts to retirees, why do they not lift the ban on ability of drivers who have got pension cuts already to be able to seek employment in another job in trucking? without penalities to pension to supplement the pension cuts.

We have to face the facts. The union sold us down the river when they let the companies go to other retirement plans rather than central states in order to get dues paying members.That is done and we cant go back.Its not if the plan goes broke but when. I have been retired since 2006 and wondered why they have not done anything to help much since then.Why dont we raise the retirement age to 62 and cut pensions for those of us drawing more than $2500 a month? I know that I will lose 2/3s of my pension when they go under so doesnt it make sense to take less now and keep it going longer.It feels good to go to meetings and jump up and down saying they cant do this but unlike their friends in Washington (Obama) we cant print money or borrow from China.So lets try to make what we have last longer.

After reading and hearing about all the cuts, I really wonder if there will be any way of retiring? My body will not last any longer than 5 yrs more and I will have over 30 + years in. It is no secret that UPS is trying to force and put pressure on the older drivers to perform and get the younger, faster drivers in the system. There are many in our area that just want to get the years in  and get out ASAP, due to the harassment and excessive hours. I always thought the union would be there to back us up and secure our retirement monies. Now , I wonder where all this is going, Iam not one who keeps up with everything, so Iam hoping there is some kind of support out there to help understand this problem. Its crazy how the union dues just keep coming out and Iam hoping they are doing some good for someone.