January 26, 2007: In 2002 UPS made record after tax profits of $2.4 billion, the most of any transport corporation in the world. That was when the “Best Contract Ever” was signed between Hoffa and management. But by 2005 those after-tax profits jumped 62 percent to $3.9 billion, and in 2006, UPS’s after-tax profit exceeded $4 billion for the first time ever.
An increase of over 70 percent during this contract in profits. During that same time Teamsters in the Western Conference, Central States, New England, New York City and elsewhere didn’t see a 70 percent pension increase, instead they saw their pension accrual cut. In the Central States Fund, retiree health care is practically gone. An increase in corporate contributions could fix that, and restore our good benefits.
During that same time, the base wage for UPS part-timers remained $8.50. That wage was frozen in the 2002 contract, and has gone up just 50 cents in 25 years! Some 29 states have minimum wages above the federal level, and some of them could soon pass up our base part-time wage.
Net profits of $4 billion. That’s about $20,000 per year for each part-time and full-time Teamster. That’s more than many part-timers make in a year. A small fraction of that $20,000 could fix a lot of contract problems.