The United Parcel Service (NYSE: UPS) and the Teamster's Union have reached agreement on the proposal Douglas McIntyre wrote about here last week. A new five-year contract, to be voted upon by the Teamsters' UPS employees, would transfer the 43,000 UPS employees currently enrolled in the Central States Pension Fund, which covers almost 400,000 union members from a number of companies, into their own pension fund, funded by UPS and administered cooperatively by UPS and the union. The contract would require UPS to make a one-time pre-tax payment of $6.1 billion to the CSPF to make up for its loss of members.UPS is the largest employer of Teamsters, with around 240,000 covered by this contract proposal. The union claims that the new pact will not only better secure pension rights, but also bring increased wages and safeguard medical coverage for current and retired UPS workers. According the to The Wall Street Journal [subscription], the new contract would increase wages and benefits by $9 per hour over five years.
Critics of the proposal worry that, for the union, culling the UPS workers from the already-underfunded CSPF could weaken the pension security of non-UPS union workers. While UPS claims that the agreement will help it remain competitive, any cost-capping features in the contract that will allow them to compete with mostly non-union FedEx have yet to be specified.
Both sides claim to be pleased that accord was reached upon almost a year before the previous contract was due to expire. For the union, it will allow the members to vote on, and hopefully pass, the contract in time to beat new pension regulations that take affect January 1. For UPS, the pact secures an uninterrupted labor force for many years to come.











Reader Comments (Page 1 of 1)
10-14-2007 @ 3:02PM
Liberty Bear said...
This contract stinks! After allowing UPS to slash new employees' salaries to a miserly $8.50 an hour years ago, the International "Brotherhood" of Teamsters is now going to allow those raises to be frozen at $8.50 for another five years. In addition, new employees now won't get any medical benefits or paid holidays for their first year.
And the new "split" pay raises are an embarrassment. Instead of getting an exciting 70 cent pay raise up front, they give you a 35 cent pay raise just before the holiday season, our only chance to earn extra money. After the good times are over, we get the rest of our pay raise.
The Teamsters are in bed with the enemy, just like my last union, the National Education Association.
10-14-2007 @ 3:06PM
Liberty Bear said...
P.S. When I posted my message, I was informed my e-mail address would not be displayed. So why do I now see it displayed - TWICE?!!
10-14-2007 @ 4:16PM
anthony dorazio said...
this is the one of the worst contracts in my 23 years with ups..it actually is worst then some of the contracts jackie presser negoitated hoffa and ken hall sold us out..ups made more money then ever there`s no reason for give backs it sets a bad precidence for future contracts..everybody should vote no and send the int`l back to the negoitating table hoffa im voting against you next election..ron carey was right on target..we give our blood to this company we miss our kids growing up the sacrifices are enormous when you work for ups ..the members deserve better go get it done ...or you will be back in your law office before long if this is the best you can do
10-25-2007 @ 4:56PM
Deb said...
Yes, I too am in ageement w/ the above members. This contract sucks! It's an embarrasment and a kick in the face to the UPS emloyees! I've only been w/ UPS since 2001 and thought the last contract was good....why are we going backwards?? To only get an increase of a megger $4.00 over a 5 yr. span? What happened to "cost of living??"
That stinks w/ the bennies! How in the world did our "brothers" agree to this???
I know at the Tinton Falls hub in NJ we have been talking.......both preload & drivers. We are all voting it DOWN!
RENAGOTIATE!!!!!
10-27-2007 @ 10:28PM
UPSPORTLAND said...
STRIKE!!! No health benefits for the first year and none for their families for a year and a half. Pay raises arent even guraranteed for the new hires and it will take 3 years to reach top scale for driving instead of 2. If the contract is so good why is no one getting one inthe mail? All were getting in Portland is the union walking through and saying "vote yes its great" yet no one wants to show it because its crap. I feel like im buying a used car from the union. The sad part is alot of members over here are just taking the unions word for it. We need to organize against this contract. email me if anyone wants to be proactive cisko_@hotmail.com
10-29-2007 @ 12:18AM
anthony dorazio said...
this contract is even worst then i originally thought Hoffa your gone Ken Hall better keep practicing your banjo you wont be working for the Int`l much longer if we can help it..A no vote is imperative we are getting screwed royally...no wonder ups management is pushing this contract its a win win for the company..it set the union back many yours of fruitful negoatations..im a driver in new york I feel for the new people coming in..wake up fellow teamsters this is a sham vote "no"
11-05-2007 @ 12:26PM
Cheryl Schneider said...
The IBT Bosses have made backroom deals with UPS management. They are railroading this sellout garbage to membership. We got 2 auto-dial calls since last week from Hoffa Jr telling my IBT husband to support this sellout, dirty deal.
The Teamsters have worked hard and long to protect their present and future status in America's workforce. This contract rolls back 1997 gains and some gains that were won after a 3 month strike 25 years ago.
How dare they negotiate away current benefits and retirement benefits back into UPS control!
We (well, my husband, with my knowledge and FULL support) put his NO ballots in the AM mail.
ALL Teamsters, not just Part Timers, Local 804 memebers or Central States members need to say NO and send these guys back to the table. better yet, replace these dogs.
11-12-2007 @ 10:45PM
mark hallada said...
ups is controled by a bunch of thieves' ask all the bonus centers...how they steal daily from us....sheboygan wisc.
11-17-2007 @ 11:18PM
joe blow said...
bad contract stupid workers' 3.5 inflation rate your 1.00 in 7 yrs is worth 50 cents...ups will never raise this pension'
11-19-2007 @ 11:49PM
joey santa said...
great company' why would ups give raises out like this if they didnt have plans to take them back like the last 6 yr contract ? everyone knows ups holds huge oil futures....an charges the customer surcharges' hope everyone is happy our pension will never increase....they could have at least contributed to our 401k a percentage? i think when united way comes around they should look for someone else besides their employees to make them look good" we give enough" and have had enough'
11-26-2007 @ 7:14PM
Mark said...
I am in total agreement that this contract proposal needs voted down.
First, it is short-changing existing employees on a raise progression that barely meets cost of living, and the governments mandatory minimum wage hike.
Secondly, the starting wage is an insult for the type of work being done here, and it hurts the company badly in performance and service to be paying this to start. newhires need to be aware they are expected to work hard and set an industry standard, BUT they need paind enougfh to stay more than two days without quitting!
I am unfortunately currently uneducated on the other aspects of the contract, but I don't even care at this point. Management continues to become wealthy on the blood and sweat of teamster part timers and it's time the union stand up for us!
12-01-2007 @ 9:12PM
midwest slave said...
YOU know why is it the workers in the midwest should work so much harder than other regions? Are we the ones getting used' An the contracts always get passed no matter what? because other parts of the country drivers are more educated an know there rights n don't let ups push them around an there for vote yes because they work at a fair pace an are treated better' an there pensions are more...duh of course there happy' until the midwest drivers wake up an stop being so stupid an brown nosing management so there kids can become drivers...the conditions will stay the same...
12-08-2007 @ 10:31PM
Jerry Glenn said...
Yea it stinks! I say STRIKE!! After all why shouldnt UPS workers have an even better financial gain from employment in their low-skill jobs than degreed professionals? It's just not fair!@
12-08-2007 @ 10:43PM
fogshat said...
"According the to The Wall Street Journal [subscription], the new contract would increase wages and benefits by $9 per hour over five years.
"
Anyone complaining about this contract needs to look in the news and see all the companies in this country that are going out of business. Thousands, no, tens of thousands of families struggling to make ends meet following layoffs, losing pensions altogether, etc. It is happening all over the country in an increasing basis, and the biggest issue is labor cost!!.
I'm not anti union, but i do think that union workers should acknowledge that they are not paid by the unions - you DO want your employer, who uses union labor, to stay in business, don't you?
After all, putting them in harms way financially, puts you and your family in harms way, financially.
Try looking at the big picture.
12-22-2007 @ 9:41PM
joey santa said...
To the last comment" at ups the cost of labor is not that bad...or they would stop raising there prices every year an then yes us workers would accept a pay freeze...but they just keep stuffing there pockets an ripping the consumers off..an like all companys pay out huge bonus's to business managers who could'nt balance there own check book if they had too"When corporate america stops stealing from there employees an paying a descent wage an giving billions to worthless ceo's..they won't have to worry about going under or out of business after they rip share holders off an bank's...Did ups ever think of giving a huge discount for next day air 'on xmas eve" can u imagine the online business they would get" no its because there greed an stupidity is going to kill them someday"