Hoffa Announces Central States Deal

August 31, 2007: Chief negotiators James Hoffa and Ken Hall announced today they will let UPS break out of the Central States Pension Fund in an early deal to be inked by October.

Then the issue will be in the hands of working Teamsters at UPS.

This is an issue that will affect every Teamster-not just UPSers. Every Teamster who is concerned about the future of our union's power and our benefit funds needs to make their voice heard and to call on local officers to take a stand to defend our union.

You can help make that happen by distributing this information to Teamsters where you work and at union meetings.

A hard-core sales job, by both the company and the union, is on the way. UPS Teamsters need to be prepared to evaluate any early settlement carefully and scrutinize the impact it would have on both Teamster benefits and working conditions.

Click here if you can help us alert other Teamsters and to send us your thoughts on this issue.

Click here to download the latest bulletin from Make UPS Deliver.

Click here to download the latest Central States Pension Update from TDU.

Working Conditions at Stake

One danger is that the pension issue will overshadow the many contract issues affecting UPSers' daily working conditions.

In surveys and contract meetings, working Teamsters at UPS made it clear that UPS should not get an early agreement unless it includes:

  • Real protection from excessive overtime
  • Strong language to ensure compliance with 8-hour requests
  • Higher wages-especially for part-timers and combo workers
  • Fairness for combo workers-including stronger bidding and seniority rights.
  • Increased penalties for supervisors working
  • Protection from unfair discipline based on new UPS spying technology
  • A minimum of 10,000 new full-time jobs

UPS is prepared to spend billions to push through its pension grab and distract members from the critical language issues that determine the quality of our work lives.

The pressure is on the company, not us, to settle early. We need to win the improvements that we deserve or we will suffer the consequences for another five years.

Central States Pension Grab

UPS has been gunning for more control over our pensions for years. This year, they are taking a more incremental approach by focusing on Central States. If they get their foot in the door at Central States, the company will target other Teamster funds in the future.

We can expect plenty of bait to get Central States Teamsters to swallow the hook, including:

  • Higher pension benefits than what Central States currently offers
  • Real 30 & Out benefits (no 6 percent annual penalty for retiring before age 62)
  • More affordable retiree healthcare

That's what UPS will dangle to get working Teamsters to take the bait. The hook will come later when UPS caps future pension increases going forward. UPS stands to save billions of dollars over the long-term by reducing future benefit costs. That's what the company's move against Central States is all about.

That's why UPS management will offer approximately a $6 billion payment to withdraw from Central States. UPS management knows they will make up these billions and more by paying working Teamsters lower benefits in the future.

A drug dealer is always willing to sell you your first score on the cheap. They know they'll make it up many times over once you're hooked.

We can win improved benefits and affordable retiree health care without letting UPS split the pension fund. Our union took that united position in 1997 and we won record pension increases.

Hoffa and Hall Shill the Company Plan

It's obvious why the company wants to destroy Central States, but why are Hoffa and Hall are cynically promoting this short-sighted deal?

They claim that actuaries hired by the union say that breaking up the Central States Fund is the "only option." Are these the same actuaries who promised that the "Best Contract Ever" would protect our benefits for the life of the agreement?

These actuarial studies are paid for by members' dues-so why isn't this information made available to Teamster members so it can be independently verified? Instead, UPS Teamsters are kept in the dark and told to take Hoffa word for it. That's what we did with the "Best Contract Ever" promises.

In 2002, Hoffa and Hall gave away the 30 & Out benefits that we fought for decades to win-and secured in our 1997 strike victory.. Now they are poised to give away the rest of our strike victory by giving up the Central States Pension Fund.

Concerned Teamsters Need to Act Now

An early deal is on the way and so is the biggest sales job ever. We need to prepare our fellow UPS Teamsters to carefully scrutinize any early settlement-and consider its long-term consequences, not just the short-term improvements.

Leading up to the settlement, TDU and the Make UPS Deliver campaign will be producing informational bulletins. When a tentative deal is reached, we will publish a detailed analysis so UPS Teamsters can make an informed decision.

You can help make that happen by distributing this information to Teamsters where you work and at union meetings.

This is an issue that will affect every Teamster-not just UPSers. Every Teamster who is concerned about the future of our union's power and our benefit funds needs to make their voice heard and to call on local officers to take a stand to defend our union.

Remember, the 'Best Contract Ever' sounded good in the short term too. Hundreds of thousands of Teamsters paid the price through benefit cuts and diminished member confidence in our union.

We can't afford to let history repeat itself.

Click here if you can help us alert other Teamsters and to send us your thoughts on this issue.

Click here to download the latest bulletin from Make UPS Deliver.

Click here to download the latest Central States Pension Update from TDU.

Click here to download the statement from James Hoffa and Ken Hall.

Issues: 
UPS
Pension and Benefits

Comments

SLOW WRENCH replied on

IF THIS GOES TO A VOTE & UPON PASSAGE THEN WHAT WILL THE MEMBERS DO IF THEY HAVE 28 OR 29 YRS VESTED IN CENTRAL STATES, WILL THEY  HAVE TO WORK FOR 5 MORE YEARS UNDER THE NEW PENSION IN ORDER TO VEST. JUST TO  GET THERE 30 YEARS IN?? THIS WOULD MAKE THEM WORK A TOTAL OF 33 TO 34 YEARS JUST SO THEY COULD HAVE AT LEST 30 YEARS IN. 

johnnegron replied on

John in TNI have one big question, Why would Central States give up on our pension? I do not think this is going to happen. Central States is still going to get the pension money from UPS but is going to create a new plan for UPSers. This way everybody will be happy; 1) UPS will get us out of a muti-employer plan into one created just for UPS and 2) Central States will keep getting our pension money. Its a win win for Central States. Its upset me that no information is coming out on this. If UPS wanted out of Central States, all they have to do is pay the $6 billion dollar liability and is over. No vote from its members, no nothing. Why the negotiations? Maybe Teamsters told UPS if they get out of Central States that we will call a STRIKE and UPS does not want to hear this or the words of a strike to get out. To me this is a compromise.  Our biggest problem in this matter if this happens is what about the UPS retirees, the members that have over 20 years of service and the UPSers ready to retire. Which plan is going to pay these pensions. If it is the C-6 plan that we are in, we are in big trouble. Why? Because when the plan uses all its money for the C-6 plan, thats it. I feel that if a new plan is created UPS should bring into the plan, all ups retirees and honor all years of service in the new UPS plan. This has to happen because if it doesn't, all UPS retiree and all members with years vested in Central States C-6 plan are in trouble. The money will run out. We cannot be left on a sinking ship. Lets really find out if UPS really wants to take care of its own, like they always say. If all UPSers including retirees do go over to the new plan, it will be less money that Central States has to pay out in the C-6 plan and will be able to continue longer.  This is my opinion after reading between the lines because of lack of information from Teamsters, Central States and United Parcel Service. Union members that are to vote on this be careful because if they mess with the retirees and you say I don't worry about them, remember you will be one of us someday, the same can happen to you. 

johnnegron replied on

   This is my opinion since we do not receive any information from Teamsters, Central States and UPS concerning UPS leaving the Pension Fund. I have to read between the lines from the information that we do received.     One BIG question I have is why is Central States so willing to let UPS out of Central States Pension Fund? Maybe they are not? Maybe they are going to create a new pension plan for UPS and let them out of the C-6 plan? Could this be what the members are going to vote for? To stay in the C-6 multi-employer plan or the new UPS plan with Central States.  This way UPS could get what they want, out of the multi-employer plan, and Central States will keep getting our pension money. Its a win win for UPS and Central States.        When UPS pays its $6 billion dollar liability it should be over between UPS and Central States. Why is UPS hanging around? Maybe if they didn't agreed to this deal, Teamsters would call a strike like in 1997 and UPS does not want to hear that or a word of that going out would be very bad for UPS.      The problem I have with this is that after UPS pays its $6 billion dollar liability and leaves the C-6 plan what is going to happen to us when the money runs out? Is UPS going to take all its retirees with them? Is UPS going to honor all the vested years of its employee in the C-6 plan? Is UPS going to leave all of its employee and retirees in a sinking ship? The money will run out without any new money comin in, then what?We have to be careful when we vote on this, your pension is important. If UPS doesn't take care of its retirees in this matter because we are not there anymore, what do you think they are going to do to you. Remember UPS always said they want to take care of they own, here is there chance to prove it. John in TN

johnnegron replied on

    I do not think UPS is leaving Central States. By reading between the lines because of lack of information from UPS, Central States and Teamsters its seems that Central States is going to create a new plan in the Fund for UPS. This will keep us in Central States and will get us out of the multi-employer plan. Its a win win for Cental States and UPS. Lets hope its a win win for UPSers. We need to make sure that if this happens that UPS honors all our years of service in the new plan, not half in the old plan and the other half in the new plan. Why? Because after Central States spends all of its money in the old plan, that plan can go under because they is no funds coming in or should I say no UPS funds coming in. This will not happen right away but it could happen 10 years down the road.  Also make sure that the retirees from UPS are brought into the fund so we don't leave them in a sinking ship, meaning Central States. If UPS doesn't take and protect the retirees you can bet your bottom dollar they will not protect its future retirees. Make sure you get all the facts and vote wisely.  John in TN

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