UPS $1.1 Billion in Profits Exceeds Wall Street Expectations

UPS made $1.1 billion in profit in the first three months of the year—a 10 percent increase over last year. But executives complained the company is the real victim if the Treasury Department approves Central States pension cuts for 400,000 Teamsters. 

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When Hoffa and Ken Hall let UPS pull out of the Central States Pension Fund in 2007, they set off a chain of events that has put the union’s biggest pension fund in deep crisis.

But the deal between Hoffa-Hall and UPS had a costly loophole for the company. If Central States ever lawfully cut retiree benefits, UPS would have to make up the difference for UPS Teamsters who retired after 2007.

The chickens may be coming home to roost. If the Treasury Department approves the Central States pension cut plan, UPS will have to make up for the losses to recent and future retirees.

Nearly 9,000 Teamster retirees from UPS will not get these supplemental retiree benefits because they retired before the company pulled out of Central States.

UPS is crying foul—and says the Central States plan is unfair. They are demanding that Central States make even deeper cuts to some retirees (including UPSers who retired before 2008) in order to save UPS money.

This is a corporation with no conscience. First, they pulled out of the pension fund and put the pensions of 400,000 workers in crisis. Now, they’re demanding even deeper pension cuts to help company’s bottom line.

Teamster pension activists have a better idea. They have built a grassroots movement to demand that the Treasury Department reject the pension cuts and to push for pension reform legislation (including the Keep Our Pension Promises Act) that would save everyone’s pension without costing tax-payers a dime.

Brown has done enough damage already. The company should get behind the Keep Our Pension Promises Act—instead of continuing to attack workers’ pensions.

See UPS Profit Beats as Deliveries Increase


Showing 5 reactions

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  • Stephanie McAllister
    followed this page 2016-10-21 10:05:34 -0400
  • David Thayer Sr.
    commented 2016-05-09 10:16:09 -0400
    Screw ups they never did care about employees though thats what they preached families and safety first until the time comes to put your family first or safety then they back peddle.we made them a wealthy company and now they want to spit on us. UPS does the letters FU mean anything to you.
  • Rich Hier
    commented 2016-05-07 09:55:49 -0400
    This article confuses me? If UPS pulled out of the central States pension fund, how are future UPS employees covered under that same fund? Isn’t the whole idea of a pension fund based on employer contributions? Am I missing something?
  • Tom Dudek
    commented 2016-04-29 18:16:14 -0400
    Didn’t UPS pay some 8B dollars to get out of the CSP? Seems fair to me. If you didn’t work for the company why should they fund a pension for those who didn’t work for them? Many of these other companies contributed nothing or went under. UPS pensions for UPS people if it comes to that.
  • Dan Rausch
    commented 2016-04-29 16:05:26 -0400
    I gave these bastards the best 30 years of my life and now they want to cut my pension even further. I went through several contracts forgoing raises o that my pension would be secure. My mistake was believing the lying sobs . UPS makes record profits each quarter with each quarter better then the one before it and still they want to screw us retirees out of our last dime. I hope just one potential customer reads this and decides not to use UPS because of how they do business !
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