July 17, 2006: The big health care cuts that the Hoffa administration just slapped on Michigan freight Teamsters will spread to freight, UPS and carhaul Teamsters throughout the Central and Southern Regions.
The Central States trustees are staying quiet about the cuts until after the election for International officers. Then the “surprise attack” will come down.
For the third year in a row, the contractual August 60 cents per hour increase in employer contributions in the freight, UPS and carhaul contracts has been diverted from health and welfare benefits to the Central States Pension Fund, at the request of the employers.
Central States Health and Welfare has balanced the books for the past two years by taking health coverage from retirees. But now they will have to come after working Teamsters.
Many UPS Teamsters have company-provided health and welfare, but the company sets the benefit level by matching Central States benefits, so the cuts will hit them as well.