July 5, 2005: For the first time in recent history, the grocery contracts in Southern California will be negotiated separately. If it’s done right, it will be an opportunity to address problems that have been ignored in past negotiations.
In June, Teamster leaders had a meeting on how the separate negotiations would proceed. They agreed that the first target would be Stater Brothers. Stater is not a national chain, so it would be harder for the company to take a strike.

Additionally, they were not hit by the battle with the UFCW last year, so they are in a better financial position to improve the contract. Finally, Stater’s is opening a new distribution facility this year and it doesn’t need a labor dispute to interfere.

Regional Organizing Strategy
The plan is to use the Stater’s settlement as a pattern for the others.
This was a good strategy, but then Local 630 Secretary-Treasurer Paul Kenny jumped the gun. In a surprise move, Kenny announced a tentative agreement with Unified Western Grocers.

Even though other locals involved with Unified were not aware of the deal, Kenny scheduled a ratification vote for July 19 at the work sites.
The contract does not expire until mid-September so there was no need for a rushed vote.

Members also wanted written copies of the proposed agreement before a vote was taken so they could thoroughly review the offer.

Then, suddenly the vote was called off. Whatever the reason, now there is the opportunity to use the strategy used in other parts of the country. The union should let the warehouse companies know that each settlement must be better than the previous one, and then stick to it. This has resulted in improved contracts in the industry. It’s time for Southern California to do the same.

July 5, 2005: Many warehouse and grocery workers are probably familiar with RFID technology used to track inventory, but The Guardian, a major British newspaper, reports that warehouse operators in Britain are now tagging workers also. Researchers and the union are concerned that “the new technology is raising a host of ethical issues, with the danger that the computer is taking over the human rather than humans using computers” and that “the employee is unable to do anything without the machine knowing or monitoring.”

When our last contract was negotiated, the BA didn’t tell us the whole story. The local had a meeting where they just told us about the wages and a few other things. Months later, when we finally got a copy of the contract, we found new language that weakened our seniority rights. Isn’t this illegal?
–Won’t Be Fooled Again

Dear “Won’t Be Fooled,”

The IBT constitution requires a secret ballot vote on contracts, and federal law (the Landrum Griffin Act), requires a “fair and informed vote.” A verbal review of select improvements that leaves out important language changes falls short of that standard. I don’t blame you for having a beef.

The problem is that once the contract signed, it is likely legally binding even if it was not properly ratified. Even if you sued your union leaders, your employer would surely claim a valid, signed contract. When it comes to fair contract votes, it’s easier to prevent abuses than to correct them afterward.

To prevent this in the future, you need to talk to other members who “won’t be fooled again.” When the next contract talks begin, get signatures on a petition or group letter asking the local to take the proper steps to protect members right to a “fair and informed vote” by:

 

• providing advance notice of any contract ratification meeting;
• making the complete text of all changes available to members before any vote;
• providing members with time to review the changes, ask questions, and discuss the pros and cons before a secret ballot vote is held.

It’s up to us, the members, to enforce our right to a fair contract vote. For help, contact TDU.

I recently heard that some part-timers at UPS are in Teamster pension plans. As a part-timer I was in the company plan. After I went full-time, I didn’t get any credit toward my Teamster pension for my part-time years. After Central States announced the pension cuts, they said there are not enough active workers in the Fund. Then why aren’t the part-timers in the fund?
–UPSet at UPS

Dear UPSet,

What you heard is true. UPS part-timers are in Teamster pension plans in two of our union’s biggest pension plans, the Western Conference and New England, and they are also in the Upstate NY Plan. This dates prior to1979, when UPS contracts were regional and local.

When part-timers are in the company plan, it’s lose-lose just like you said. When you go full-time, your part-time pension credit doesn’t follow you. The small pension that comes from part-time years isn’t much. Reciprocal benefits with Teamster plans help members qualify for 30 & Out—but the monetary value of our part-time years is pathetic. In areas where part-timers are in the Teamster plans, members get a much better deal.

The fact is most part-timers don’t qualify for any pension, because it takes five years of part-time work to vest in the UPS pension plan.

Where do their pension contributions go? Where part-timers are in the company plan, that money goes right into the company’s pocket. But in the West and the Northeast, it stays in the pension fund where it benefits other Teamsters.

If part-timers were in the Central States Fund, UPS would pay approximately $140 million more per year in pension contributions to the fund.

The result would be a stronger pension fund for everyone and pension credit for our part-time years. Win-win instead of lose-lose.

As part of the fight to reverse the pension cuts and restore the long-term health of our Teamster pension plans, we should be working to include all UPS part-timers in Teamster pension plans in the 2008 negotiations. If UPS can do it in 18 states, they can do it in 50 states.

 

June 6, 2005: Teamsters from 15 different locals in the South and Southeast converged in Atlanta on July 9 to discuss plans for the 2006 IBT election and delegate races, and to learn how to be more effective Teamsters.

Nearly all of the 50 members on hand are preparing to run for IBT convention delegate in early 2006. The meeting was an opportunity to share ideas and strategies for the elections.“We need to take steps now to show Hoffa the way out of office in 2006,” Nashville Local 327 member Matt Studd said. “And then we need to shut the door behind him for good.”

Dan Scott, secretary-treasurer of Seattle Local 174, was a featured speaker at the meeting. Workshops addressed how to run for union office and how to overcome apathy and get members involved in the union.

“This was a terrific event,” Local 391 retiree Frank Bryant said. “We brought a couple of carloads of people from North Carolina. We learned a lot and had a chance to meet many other excellent members and officers from other areas.”

“At the conference, we brought together Teamsters from across the South who share the same goals,” said Willie Hardy, a retired Local 667 member and TDU staff organizer. “We want to dump Hoffa in 2006 and build a stronger Teamsters union. We’re building the rank and file network we need to make that happen.”

June 6, 2005: In May, concerned Teamster officers announced that we were forming the New Leadership Committee, to put together the program and leadership team that can defeat Hoffa in next year’s IBT election.

Since then, messages have poured in from Teamster members who want to be part of the effort to beat Hoffa in 2006 and rebuild Teamster Power.

We want to hear from you with your concerns about our union’s future and your ideas about how we can work together to dump Hoffa in 2006.

Get in touch with the New Leadership Committee by dropping us a line at P.O. Box 3392, Bayonne NJ 07002 or email us
at: newleadership2006 [at] gmail.com.

Here’s a sample from this month’s New Leadership Committee mailbag. . .

“It is getting closer and closer to start something, and if you are going to be honest about the bottom line, it will be MONEY. I was a big part of the Ron Carey effort and even worked for him and still feel that he got screwed by the government.

“Money is always the little man’s problem, as we do not have a job making two and three salaries as a lot of the others do.

“It will take at least a million in my opinion to pull off an upset. Thanks.”
Concerned Southern Region Teamster

“I wish to be involved in getting rid of Hoffa!!! I am a shop steward in Local 170. Thank you.”
Wanting Change in Worcester Local 170

“Please let me know what I can do to help. We are in the process of forming a Delegate slate in my local for the purpose of opposing Hoffa at next year’s Teamster Convention.”
Local 804 Teamster

“Mr. Hoffa has never had the members’ best interests in mind, only his own. He likes to create smoke screens and talk tough but we all know that money talks and bullsh__ walks. Hoffa is going to run this union into the ground if he is not stopped. I am a UPS employee and we members hate Mr. Hoffa with a burning passion. UPSers whom I talk to want Hoffa out! Best ever contract, my a__! Not best for the members! But UPS management sure is happy.

“I agree 100 percent that a grassroots army of good hard working Teamsters that care about what it means to be a Teamster can and will take down Hoffa.”
Metro Philly Area Feeder Driver

The way I see it, the Hoffa administration is a threat to my livelihood and to my pension. Putting my money toward electing strong Teamster leadership is an investment in my future.

That’s why I’ve donated $100 to the New Leadership Committee. I’m asking you to do the same.

Our goal is to have 500 Teamsters make that $100 donation. That would give us $50,000 in seed money to jumpstart our campaign to dump Hoffa.

How much is a stronger Teamsters union worth to you? $100 is nothing compared to what we will lose if we don’t act now. Donate to the New Leadership Committee today.

Allen Bunch
Local 549, Yellow-Roadway
Blountville, Tenn.

June 6, 2005:It's no secret that United Parcel Service wants to pull all their employees out of Teamster pension funds. Like any corporation, they'd rather have unilateral control over their employees' pensions and convert them to 401(k) plans.

UPS took a step forward on that plan in May with the acquisition of Overnite. Now they have 10,000 less-than-truckload freight workers who are not in any Teamster plan, and they plan to grow that number as fast as they can.

Already outside our pension funds are at least half of UPS Teamster part timers. We can’t let this balance reach a tipping point: we need to bring Overnite workers into our funds now, and the rest of the part timers in 2008.

That’s why we have to organize UPS-Overnite, into our union and into our Teamster pension funds. Doing that would:

• Bring 10,000 new Teamster participants into our pension funds;
• Greatly improve pensions for Overnite workers and their families;
• Provide strong protection against a UPS pull-out from the funds; and
• Strengthen our funds by improving the ratio of active Teamsters to retirees.

UPS management is not to going to volunteer to pay better pensions to UPS-Overnite workers. Certainly they’re not going to be eager to strengthen our Teamster funds when management’s plan is to bust out of those funds.

UPS management has a three-point plan to undermine Teamster retirement security. Part one is a legislative attack. Part two is a campaign to soften up Teamsters with false promises of wonderful pensions from the company. Part three is taking advantage of the IBT failed leadership on pension issues.

The IBT needs a plan, too. A campaign to organize Overnite and bring those members into the Teamster benefit funds is a good place to start.

If UPS Ran Your Pension, You Would Lose $1,000 a Month!

$2,394 per month after 30 years of full time service: That is what UPS management would pay you for a pension, according to calculations performed by TDU. The calculation was based on UPS Senior Vice President John McDevitt’s testimony last year to Congress.


That’s about $1,000 per month less than Teamster plans provide.
What this means: If the same amount that UPS contributed into the Teamster pension plans since 1974 had gone into a 401(k) plan instead, and earned 7.5% a year, you would have an inferior pension today.


We calculated this figure by using the amount UPS paid into the pension fund each year since 1974 for a full timer who worked every day.


We used McDevitt’s own figure of 7.5% annual rate of return and UPS’ conversion formula from a lump sum to a monthly pension.
The calculations can be provided by TDU to interested members.

May 4, 2005: Members of Local 407 received the letter below from their local. It’s a short summary of information provided to the local by the Central States Pension Fund. From the letter, its clear that the CSF is still spinning the numbers—if the fund’s financial situation is improving, isn’t it time to improve Teamster retirees’ financial situation?

Of course spun information is better than none at all. Thanks to member pressure over the last two years, the fund is finally releasing more information to members. Its important for Teamsters to keep informed and learn more about what’s going on with our pension and health and welfare contributions.

Click Here to See the Letter for Yourself

April 29, 2005: The recently announced pension cuts in New England went over like a Yankees victory in Fenway Park. The angry uproar by members and local officers has pressured the New England Pension Fund Trustees to reverse two of their most unfair pension cuts announced in July.

The new is not all good. The restrictions on 25-and-out and 30-and-out pensions before age 57 remain in place. New England Teamsters who did not have enough years of credit by July 31, 2005 will not be eligible for 25- or 30-and-out until age 57. Unlike in the past, the changes did not include grandfathering provisions to protect Teamsters who were close to making their 25 or 30 years and were planning to retire soon. Members are calling for the fund trustees to grandfather existing negotiated promises. Teamsters who were close to qualifying under the old rules should have their contracts honored.

Change #1: No Punishment for Continuing to Work
Under the original changes, Teamsters with 25 years who continued working after July 31 would have their pension frozen until they reach age 57. Then, at 57, the pension would snap back to the full rate. A member who had to retire before 57 because of injury or the closure of their company would get no additional benefit for their extra time worked.

The Trustees have now eliminated this “Snap Back” provision. If, and only if, you had 25 years on July 31 and were eligible for a special service benefit, then you will continue to earn the additional $150 per year and be eligible to retire at any age.

Change #2: Honoring Promises in Existing Contracts
Under the original cuts, Teamsters would have suffered a reduction in their pension accrual if they were covered by contracts that did not include annual increases in their pension contributions of 5 percent. This would have meant pension cuts for many New England Teamsters covered under multi-year contracts that were negotiated before the pension rules were changed.
The Pension Fund Trustees have backed off of this unreasonable rule. Now, the Pension Fund will honor all existing contracts by maintaining the accrual rate. When these contracts expire, the new contracts must include increased pension contributions of 5 percent a year to maintain the accrual rate.
Pension Reform, Accountability Needed

Both of the reforms to the original cuts address problems that were first reported by TDU. It remains to be seen whether membership pressure can convince the Trustees to introduce stronger grandfathering provisions that will protect Teamsters who were planning to retire under the old rules.

Teamster members and officers won these improvements by putting pressure on the Pension Fund Trustees. This is an example of how our union trustees on the pension fund are indirectly accountable if we apply enough heat. What is really needed is direct accountability.

The New England pension cuts show the need for us to elect delegates to the 2006 Teamster Convention who will back reforms to the Teamster Constitution to hold benefit fund trustees directly accountable to Teamster members–and to support candidates for International office who will defend our pensions from attacks by the employers and corporate politicians.

April 25, 2005: While Hoffa prepares to release a report justifying his shutdown of RISE investigations into organized crime, government investigators and the press are pursuing the leads Hoffa claims are a dead end:

• Joint Council 25 President John Coli is under investigation by the FBI based on the leads Hoffa chose not to pursue including allegations of organized crime influence and benefit fund scams in Local 727.

• The Independent Review Board is investigating Local 714, the 10,000-member local long run by the Hogan family. At least ten people have been summoned to testify as part of the investigation.
  

The Independent Review Board (IRB) has already acted on other investigations shut down by Hoffa. Joseph Bernstein, a Hoffa ally and Joint Council 25 Vice President, has been barred from the Teamsters.

In another breaking story, The Chicago Sun-Times has linked former Local 726 president Daniel Stefanski with organized crime figures including “mob bookie Nick ‘the Stick’ LoCoco” who is suspected of taking bribes from working Teamsters who wanted full-time jobs or overtime opportunities.

Stefanski is also alleged to have offered a $20,000 reward to anyone who could provide the address of a mob informant that the Chicago Outfit wants dead.

The Sun-Times revealed that Hoffa knew of these allegations but chose not to pursue them for “political reasons.” Stefanski is a boyhood friend of the Illinois Governor and is now on the state’s payroll.

The collapse of Project RISE last year was a public relations nightmare for the Hoffa administration. With headlines screaming, “Mob stigma again haunts Teamsters,” Hoffa hand-picked corporate attorney Edward McDonald to issue a report and save his image.

One year later, McDonald will finally issue his long-anticipated whitewash.

Incredibly, McDonald’s report barely explores the organized crime allegations, according to the Sun Times, which got access to a leaked copy from the Hoffa administration. Instead, McDonald’s whitewash focuses on personally attacking Stier.

The IBT may not be interested in Stier’s findings. But the feds and the IRB are. TDU will continue to inform members on these breaking stories.