December 6, 2005: Teamster and employer trustees of the Central States Funds agreed to changes in benefits to keep the overburdened multi-employer pension fund from collapsing, a Teamsters faction reported.

The dissident group Teamsters for a Democratic Union, in a Dec. 1 Web posting, blasted the agreement as a disservice to union members and called for firing the Teamster trustees.

"In exchange for an IRS extension of the period allowing for amortizing the fund's unfunded liabilities, the trustees agreed to lock in the [2003] pension cuts and usher in more health care cuts," TDU charged. "The employers and IRS got what they wanted and Teamster members got the shaft."

The International Brotherhood of Teamsters praised the agreement and criticized TDU.

"These are more scare tactics from a small, dissident faction that is trying to exploit the pension crisis in this country for political gain," IBT said.

"The IRS amortization agreement is a major victory for Central States," the union continued. "It is the only such agreement the IRS has granted, and it will allow Central States to regain its financial footing after the unprecedented stock market losses that have affected every pension fund in the country."

TDU said "stunned" union officials were informed of the changes Nov. 8 by Fred Gegare, chairman of the five union trustees who administer the fund with five employer trustees. The Central States fund covers workers at unionized trucking companies, including UPS, the largest employer of Teamsters.

According to TDU, trustees agreed to keep in place pension cuts made in 2003, divert health and welfare money for 2007 to the pension fund and not restore a "25- 30-and-out" provision that has been eliminated for younger fund participants. In addition, future labor contracts must include an increase in pension contributions of 7 percent in each contract year.

"The IRS agreement requires employers to increase their contributions. It does not cut benefits. This dissident faction needs to get the facts straight," IBT responded.

"The dissident faction's solution to the national pension crisis is to do nothing, putting members' entire pensions in jeopardy by forcing a government takeover that would result in huge benefit cuts by as much as two-thirds," the union said.

In July, Thomas C. Nyhan, executive director of the fund, in a letter to employers, said the Internal Revenue Service at the request of the fund had approved a 10-year extension of the period for amortizing unfunded liabilities, subject to certain conditions.

"The conditions attached to the amortization extension period will require additional contributions to the pension fund in order to maintain existing benefits, but the issue of additional contributions can now be addressed in the context of the collective bargaining process rather than as a result of IRS imposed penalties," Nyhan wrote.

Nyhan could not be reached for comment on the agreement.

December 5, 2005: Tom Leedham will soon be the only officially accredited opposition candidate for Teamster General President—thanks to a member-to-member effort by Teamster members who collected more than 55,000 signatures in just four weeks.

“The response was incredible,” said John Youngermann, a Local 688 UPS Teamster who collected signatures in the St. Louis area. “Members were lining up to have the chance to vote against Hoffa and for International leaders who will fight for us. Even former Hoffa die-hards wanted to sign.”

Members collected 20,000 more signatures than were required by the Election Rules to accredit the Tom Leedham Strong Contracts, Good Pensions Slate. As a result, Teamster members will get to hear from the Leedham Slate in the campaign battle pages in the February issue of Teamster Magazine.

The fact that it took less than four weeks to collect the signatures shows two things. First, Teamster members are hungry for change. And second, the Leedham Campaign is building the grassroots network of Teamster volunteers that will be needed to win the 2006 Teamster election.

Now volunteers are turning their attention to the next steps in the campaign, including Convention Delegate races, fundraising and spreading the word about the Tom Leedham Strong Contracts, Good Pensions Slate.

Time to Step Up

“Hoffa’s team is splitting apart, just as the Tom Leedham Campaign’s grassroots network is coming together,” said Chris Roos, candidate for Eastern Vice President. “This election is ours to win. It’s time to step up. Every Teamster that wants positive change needs to know this is your chance to get involved and make it happen.”

Convention Delegate Elections: The elections for Teamster Convention Delegate are the next critical challenge. Delegates will officially nominate candidates at the IBT Convention in late June. The Leedham Campaign needs supporters to run in these races to put the Strong Contracts Good Pension Slate on the ballot and to support positive changes at the Teamster Convention.

Most locals will be holding their nomination meetings in January (some in February) so the time to act is now. Call TDU or the Leedham Campaign for information and assistance.

Spread the Word: Informing members about the election will be up to Teamsters like us. You can help by passing out flyers and information. Make sure you get on the Leedham Campaign mailing list and email list to receive regular updates and campaign materials.

Build Campaign Events: Slate members will be hitting the road to talk about their plans for the future of the Teamsters Union, in a series of upcoming campaign events. Get involved by attending or hosting a campaign meeting in your area. Contact the campaign for details.

Build the Campaign Warchest: The Leedham Campaign will also be launching a drive to raise $100,000 by the end of January as the start of a larger warchest. Funds are needed to finance travel for candidates and to reach the 1.4 million Teamsters. Donate online at www.leedham2006.org or send a check to Leedham Campaign, 1863 Pioneer Parkway East #217, Springfield OR 97477.


Click here: Tom Leedham Campaign for Teamster Presidency Moves Ahead!
Click here: Hoffa 'Dis-Unity' Slate Splits
Click here: After the Hoffa Split: Forging Alliances Based on Plans, Not Personalities
Click here: Teamster Candidates Will Debate

December 5, 2005: James Hoffa’s so-called “Unity” Slate split into competing factions as Tyson Johnson announced his candidacy for Teamster General President. Johnson is the Director of the Freight Division and an IBT Vice President from the Southern Region. Other Hoffa-slate Vice Presidents are reportedly joining the breakaway effort.

Johnson announced his candidacy in a letter to Hoffa on December 12. He and Central Region Vice President Phil Young have been working to recruit other International Vice Presidents and Teamster officials to their slate. Among the IBT Vice Presidents who have joined the Johnson effort is Tom O’Donnell, who previously announced he would challenge Hoffa for the presidency himself.

Hoffa is apparently trying to patch up the rift. His PR man, Richard Leebove, dismissed the whole thing to reporters on December 15, three days after Johnson faxed Hoffa of his candidacy, as “only a rumor.”

The breakup of the Hoffa “Unity” Slate is a damaging blow to Hoffa who has depended on the united support of most Teamster officials to deliver the vote. Now that unity is fracturing at the highest levels of our union-and among local officers as well.

The president of New Jersey Joint Council 73, Don DiLeo, has joined the Johnson effort shortly after declaring his candidacy for Eastern Region Vice President.

“The Teamsters do not need and should not be influenced by non-Teamsters, outside consultants, etc.”—a reference to Greg Tarpinian, the consultant who has become Hoffa’s leading strategist and a lightning rod for Teamster officers who resent the IBT’s arrogant, top-down approach to locals. Seventy percent of Joint Council 73 members' votes went to Hoffa in 2001.

Another former Hoffa supporter, Eastern Region Freight Director Danny Virtue, the president of Harrisburg Local 776, is also involved. More officers are expected to follow, draining votes out of the Hoffa camp.

One International Vice President who is sticking with Hoffa said that “Leedham and TDU must be ecstatic today.”

“It’s increasingly clear to Teamster members and officers alike that our union needs a different direction to stop the decline of Teamster power under Hoffa,” said Tom Leedham, candidate for General President on the Strong Contracts, Good Pensions Slate.

“We’ll be looking for common ground with all anti-Hoffa forces. And we'll continue to build our campaign to rebuild Teamster power, win strong contracts and good pensions, and organize the nonunion competition,” Leedham said.

Click here: Tom Leedham Campaign for Teamster Presidency Moves Ahead!
Click here: Members Back Tom Leedham Candidacy
Click here: After the Hoffa Split: Forging Alliances Based on Plans, Not Personalities
Click here: Teamster Candidates Will Debate

December 5, 2005: Teamsters will be able to judge the candidates for Teamster General President in a debate to be held in late August 2006, thanks to a proposal by Teamsters for a Democratic Union that is going to be made a part of the IBT Election Rules.

The debate will be overseen by the independent Election Supervisor, and will be recorded and distributed (presumably on DVDs) to Teamster members. We are hopeful that it will be mailed to all members, by far the most effective way to reach members and encourage more Teamsters to vote.

TDU attorney Barbara Harvey put forward the proposal to amend the rules, and argued for it at a hearing before Judge Loretta Preska, who then directed the U.S. Attorney and the IBT to negotiate the terms of a debate.

There is one weak point in the proposed final debate rule which TDU is working to change: a candidate for General President can send his Secretary Treasurer running mate as a stand-in. TDU made a submission to Judge Preska asking that this single part be changed, so that members can see the actual candidates, and not a stand-in. A final decision is expected soon.

Hoffa’s attorneys pushed for the stand-in clause. In 2001, Hoffa waited until the last minute to chicken out of his scheduled debate with Tom Leedham. This time, he’s got attorneys working on an escape route a year in advance!

Teamster members deserve to have a real debate between the candidates, to help make an informed decision on the future of our union. Fortunately, we have TDU to make it happen.


Click here: Tom Leedham Campaign for Teamster Presidency Moves Ahead!
Click here: Members Back Tom Leedham Candidacy
Click here: Hoffa 'Dis-Unity' Slate Splits
Click here: After the Hoffa Split: Forging Alliances Based on Plans, Not Personalities

December 5, 2005: For nearly a year, the Hoffa administration has been lobbying for legislation that would allow Teamster benefit plans to cut members’ previously guaranteed pension benefits—and even to cut the pensions of Teamsters who have already retired.

Teamsters for a Democratic Union has fought this legislative attack on our pension security. Now at the 11th hour, James Hoffa has reversed himself and adopted TDU’s position—coming out against the so-called Red Zone Amendment.

Since early 2005, the Hoffa administration has lobbied in favor of the Red Zone Amendment—a proposal that would allow Teamster plans to cut pension benefits that members have already earned.

But in a letter to Congressional Representatives on December 2, Hoffa said, “So-called ‘red zone’ benefit cuts, would result in a reduction of vested benefits and should not be included.” This is exactly what TDU has demanded for the past year, along with many concerned Teamsters and the Pension Rights Center.

TDU members visited Congressional leaders to lobby against the Red Zone Amendment and fight to preserve federal “anti-cutback protections” that make it illegal to cut pension benefits that members have already earned.

Before Hoffa’s flip-flop on December 2, his administration had lobbied in favor of eliminating those protections. In February 2005 the IBT Legislative Director complained that “Trustees are limited by ERISA and can only affect [cut] future accruals.” In May the International again called for members to support repeal of the 1984 anti-cutback law, to give “more tools” to pension trustees to cut benefits from retirees.

“It’s nice to finally have our International Union with us, instead of against us,” said Frank Bryant a TDU member who lobbied Congress against the cuts. “My question for Hoffa would be, ‘What took you so long?’”

The pension bill is heading for the final steps. It remains to be seen if the Red Zone Amendment will be included. Hoffa’s 11th hour conversion to retirement security comes too late to affect the outcome of this legislative fight.

Fortunately, concerned Teamsters and TDU were there all along, working to protect Teamsters’ pension rights.

December 5, 2005: Employers across North America are attacking the pension and medical benefits of working Americans. Union and non-union workers are being hit with larger co-pays, cuts in benefits, or worse.

Our union needs a clear plan of action for protecting and improving benefits for all Teamsters. The employers have a plan. Our union leadership doesn’t. That’s why we are being pushed backward now.

Local Unions — and many benefit plans are local, or even company plans — are left to struggle on their own to combat cuts and maintain benefits.

We need to practice solidarity in action: a national plan of action for various industries and contracts with resources and leadership from the International Union behind it.

National Task Force
To start with, the IBT needs to start playing a leadership role in education and bargaining skills around benefit issues. A national benefit protection committee should be formed, with local officers, stewards and members. Its mission should be to help guide the research, organizing and education effort that is needed to counter the employer attack on benefits.

At the same time the IBT needs to create a task force that is staffed with benefit fund professionals and media experts. The task force would work closely with the national committee to mount campaigns.
We also need to aggressively work for a national health care plan in this country, so that non-union employers like Wal-Mart have to start paying their fair share.

The IBT under Hoffa has absolutely no ongoing mechanism for developing and implementing a united plan among Teamster benefit funds. There is an annual Teamster educational event for trustees, which is fine, but far from adequate.

When the employers or the fund managers come forward with a proposal for cutting benefits, our union trustees’ first response must never be, “OK, how much?” But too often, that is what we see happening.

Audit of all Major Teamster Funds
Hoffa claimed nearly two years ago that the IBT would do an independent actuarial study of the Central States Fund. That was a good start, but nothing was ever heard of it again.

The members are kept in the dark and treated as the enemy, instead of a positive force to fight back. The IBT also should put in place a mechanism for independent studies of pension and welfare funds, with union-selected experts, so that any potential problems are uncovered well in advance of negative consequences.

The Western Conference Fund cut the multiplier 2.5 years ago, even though the Fund was financially strong. Now it is approaching 100 percent funding and still there is no action to restore our members’ benefits.

The New England Fund cut benefits earlier this year and then backed off on part of the cuts, under pressure from members and local officers.
In both cases the International Union leadership has been silent, going along with the employer-demanded cuts. Without any independent expert studies, our members are left in the dark, isolated and angry.

Contract Campaign Organizing
A business-as-usual approach to the 2008 UPS and freight contracts won’t cut it. Massive contract campaigns will have to be put in place early, well before the 2008 bargaining.

UPS has a plan: they want out of union pension funds, and they are aggressively marketing this to our Teamster members. This must be countered with a Teamster plan to preserve and rebuild all of our pension funds. Freight and carhaul Teamsters will also need contract campaigns that take into account the challenges of winning good contracts while defending and improving benefits.

It seems clear the Hoffa administration is not going to move in this kind of pro-active way. They react to employers’ moves, mainly by going along. And they hope if they go along nicely with UPS management, then maybe management will be nice in return, and won’t move to bust apart our pension funds.

It’s going to take a new, forward-looking Teamster leadership to defend our good benefits and improve those that fall short. That’s what the Tom Leedham Strong Contracts, Good Pensions Slate is about.
Sandy Pope
Local 805 President
New York

Click here: Apples and Oranges, or Just Rotten Apples?: Study Counters Central States' Claims
Click here: Central States Fund Trustees Keep Pension and Health Care Cuts In Place
Click here: Battle Against Cut-Back Provision Will Move Into 2006

December 5, 2005: Hoffa’s PR Man dismisses the impact of the trustees’ actions: “Leebove said the changes at Central States and other pension funds should not be looked at as benefit cuts, since no accrued benefits were lost. Instead, he said, they represented reductions in future accruals that were designed to ensure the trusts are financially solvent for years to come."
–Bureau of National Affairs
November 9, 2005

The Union Trustees of the Central States Pension Fund have announced an agreement with employers and the IRS that will lock the 2003 pension cuts in place for years to come. Even worse, this deal will usher in more healthcare reductions—and lower wage increases when contracts are renegotiated.

Cuts Are Frozen in Place
At a Nov. 8 meeting of union officials, International Vice President and Trustee Chairman Fred Gegare told stunned officials that union trustees have agreed:

• to maintain a long term freeze in the cuts to the Central States pension accrual rate

• to not restore 25- and 30-and-out, which have been eliminated for younger Teamsters, and

• to divert health and welfare money for 2007 to the pension fund, which will mean more cuts in medical benefits for Teamsters and retirees.

In addition, the Fund will require that all future contracts will have to include an increase in pension contributions of 7 percent in each year of the contract. Negotiating these huge hikes in pension contributions will divert money from wage increases and medical benefits—but Teamster members will see no pension improvements in return because our trustees have agreed not to increase the pension multiplier or restore 25- and 30-and-out benefits.

Over a month has passed since the meeting and members still have not received any information. This is our fund and our benefits that are at stake. But once again, the union trustees are keeping members in the dark.

No Accountability Is the Problem
The Hoffa administration keeps dragging out the same tired excuses. The stock market declined in 2000-2001, retirees live longer now, and there are more retirees than active members.

Is any of this big news? These are well-known facts. The reason we have Trustees is to manage these challenges—not to use them to justify cuts in our benefits.

TDU commissioned a comparison with other Teamster Funds, which showed that funds with the same demographics, and the same ratio of active Teamsters to retirees have weathered the “perfect storm” much better.

Instead of excuses, we need a positive plan to build up our pension fund and restore and protect our good pension benefits that all Teamsters can be proud of.

It’s time to fire the Trustees who are better at excuses than managing our pension fund.

Those characters need to be replaced. If our trustees won’t step down, then we need to put them into retirement by electing new leadership in the 2006 International Union election.

Click here: Apples and Oranges, or Just Rotten Apples?: Study Counters Central States' Claims
Click here: IBT Needs Plan for Countering Employer Attacks on Benefits
Click here: Battle Against Cut-Back Provision Will Move Into 2006

December 5, 2005: In November, the Senate passed a version of pension reform that did not include provisions for cutting accrued benefits. That was a positive step forward in a battle that has largely been waged by two groups, the Pension Rights Center and th grassroots Central States Pension Improvement Committee (CSPIC).

In December, James Hoffa came out in opposition to the “Red Zone” cut-back amendment, at least in writing, after supporting it for most of 2005.On Dec. 15 the House of Representatives took up their own version of pension reform for a vote. The CSPIC steering committee faxed letters to Congressional Representatives, opposing the bill if it included the Red Zone amendment. The Pension Rights Center also lobbied against the House version. It is not known what, if anything, the IBT did.

The House passed the bill and it contains cutback provisions. The Senate version does not contain the Red Zone amendment. CSPIC leaders and some Teamster local officers visited Senators and staff earlier this year to help make that happen. The battle will now move into conference committee, with the Senate and House working out differences between the two bills.

This will not start until after the Congressional recess, in late January or early February.

“CSPIC will help get word out to Teamsters once we know who is on the conference committee,” Local 391 retiree Frank Bryant said. “We will need to push hard one more time to prevent this dangerous provision from being included in so-called reform legislation.”

We urge Teamsters to write your Representatives and Senators: oppose the Red Zone amendment that would allow pensions and already-earned pension credits to be cut. Those protections have been federal law since 1984. Weakening them is no way to protect the pensions of Americans.

Click here: Apples and Oranges, or Just Rotten Apples?: Study Counters Central States' Claims
Click here: IBT Needs Plan for Countering Employer Attacks on Benefits
Click here: Central States Fund Trustees Keep Pension and Health Care Cuts In Place

December 5, 2005: TDU members who filed a class action lawsuit against Tyson Foods have won a landmark victory at the Supreme Court that will put millions in the hands of more than 800 meatpacking workers and help tens of thousands of poultry workers win litigation for unpaid wages.

In the first decision of the court under the leadership of Chief Justice John Roberts, the Court cleared the way for 815 Tyson employees to receive $7.3 million in a class action suit originally filed by TDU members in Pasco, Wash. in 1998.

In a unanimous decision, the court ruled that workers should be paid for the time it takes them to put on their protective clothing and walk from the locker room to the production line. Previously, Tyson management saved millions of dollars by forcing workers to do this work off the clock.

The case was closely watched by organized labor and big business alike. The victory means that tens of thousands of poultry workers will likely succeed in two nationwide class action cases that are now pending against Tyson.

The Supreme Court victory also paves the way for workers to collect an additional $11.4 million in unpaid wages that they were awarded in 2004 in a second class action lawsuit against Tyson. More litigation is expected.

“It took a long time, but it was worth the wait just to show that workers can win when we get together,” said Maria Martinez, a Teamster and TDU leader who was the main organizer behind both lawsuits.

December 1, 2005: On the same day that Tom Leedham delivered more than 55,000 petition signatures to become an officially accredited candidate for General President, James Hoffa's so-called 'Unity' Slate split into competing factions.

Hoffa's Freight Director and Southern Region Vice President Tyson Johnson has announced his candidacy for General President. Other IBT Vice Presidents and Hoffa supporters are reportedly abandoning the Hoffa ship.
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The breakup of the Hoffa Unity Slate is an embarrassing and damaging blow to Hoffa, whose record of pension cuts and declining Teamster power has cost him support from members and officers alike.

In 2001, the Hoffa Campaign depended on the united support of most Teamster officials to deliver the vote. Now that unity is fracturing.

As the Hoffa camp splits, growing numbers of Teamster members and officers are getting behind the Tom Leedham Strong Contracts, Good Pension Slate.Click here to visit the Tom Leedham Strong Contracts, Good Pensions Slate Website

Click here: Hoffa 'Dis-Unity' Slate Splits
Click here: Members Back Tom Leedham Candidacy
Click here: After the Hoffa Split: Forging Alliances Based on Plans, Not Personalities
Click here: Teamster Candidates Will Debate