New Contract In A Nutshell

5 Year Contract Mostly Takes Effect Aug. 1, 2008 For 240,000 Union Workers 
UPS Allowed To Withdraw From Central States Pension Plan. UPS will  pay $6.1 billion withdrawl fee, which is 51.5% more than the anticipated $4 billion. 
43,000 Members Will Shift To The Newly Formed Joint Venture Pension Plan Dec.26, 2007. New Pension Protection Act becomes effective Jan. 1, 2007
$9 Increase In Wages and Benefits Over Length Of Contract. $5 to Benefits. $4-wages.
For More: Reuters (ADDED 10/1/07)

Download the full tentative National Agreement.
Download Central Region Supplemental Agreement

"Act of God" will allow management to do "Teamster" work.  [Almost anything can be called an act of God.  Someone having the flu can be considered an act of God. This needs to be defined.]

PART-TIME
No Healthcare for p/t for one year. None for p/t spouses for 18 months.
No holiday pay or optional days til after a year. Starting pay frozen @$8.50 through 2013.

PENSIONS
Western States increasing pension (not a product of this contract.)
In Central States.
Restores 25/30 and out without penalty.
Benefits in CS wiill return to $100/month/year of service ($3000 for 30 years.)
UPS will assume responcibility until age 65. CS will pickup pension at 65.
Re-employment rule relaxed. Retirees would even be able to drive.for a living.
HEALTHCARE FOR RETIREES- $200/month for an individual. $400/month for a couple (Effective 1/08) Retiree comtributions will not go up while eligible. 
6% pension reduction for each year under 65 (for those with less than 25 years.)

PACKAGE CAR
5 day notice needed on 8 hr. request. But can be reversed by management. 
5 month opt-in/opt-out whether you want 9.5. [In effect, giving up "right to grieve."]
Penalty increased to double time. But increased abilty of management to refute. [i.e "You could have finished under 9.5 hours."]
No termination based of GPS on first offense unless dishonesty exists.(ARTICLE 6) [Isn't  putting on unnecessary miles considered dishonest?]

COMBO JOBS
No New Full-Time Job increases. No full-time combo jobs. Improved bidding language. 3 yr. progression. UPS would be allowed to NOT CREATE combo jobs if feeder jobs created elsewhere.

UPDATED 10/14/07. [NABER comments]

The Status Of The Teamsters' Central States Pension Plan
Does the new UPS/Teamster Contract bailout Central States??   It depends who you listen to and whose numbers you believe.  The Central States Pension Plan estimates it is about 63% funded under the new rules under the Pension Protection Act (effective Jan. 2008). The Teamsters (International) say that funding is about 51% funded using the old rules. UPS will pay $6.1 billion to rid themselves of CS pention obligations.  With the withdrawl fee, CSPP will be somewhere between 60% and 73% funded.  Pension funds do not have to be 100% funded to meet their obligations. Investment gains over the very conservative gains expected under ERISA laws allow  pensions to have enough assets.



UPS Proposes Joint Pension Plan For Central States

"The current UPS proposal would create a plan [for full-time UPSers that are covered by Central States Pension Plan] jointly administered by UPS and the International Brotherhood of Teamsters with an equal number of Teamster-appointed and Company trustees...The Company proposes to pay in a lump sum the withdrawal liability owed to the Central States pension fund, an amount subject to negotiation between the Company and that Fund...The Company’s pension proposal is included in a wide range of contract changes which the Company wants to offset the cost of the new plan. These proposals are almost universally unacceptable. Most of them are too farfetched to even discuss at this point " Complete press release @ Teamster.org  (Emphasis added.)

There is an article making its way around the internet that misrepresents the status of the negotiations between UPS and the Teamsters. "Van Skillman, president and co-founder of the Association of Parcel Workers of America, a new union that is undertaking a campaign to replace the Teamsters as the UPS labor representative, said he understands the UPS proposal would cover all 21 of the multiemployer Teamster jointly trusteed plans covering UPS employees, including the $30.2 billion Western Conference of Teamsters Pension Trust Fund, Seattle, and $3.4 billion New England Teamsters and Trucking Industry Pension Fund, Burlington, Mass., UPS would pay $4 billion in withdrawal liability to the Teamsters fund, Mr. Skillman said."

NABER is realatively confident that Van Skillman is not privy to the negotiations between the UPS and the Teamsters, considering that Skillman is trying to displace the Teamsters. 

In NABER's opinion, the Teamsters will allow UPS to bailout the Central States Pension Plan, if the deal is right.

APWA Attempts To Displace Teamster Representation Of UPS Workers
"Association of Parcel Workers of America expects to launch its campaign Friday [2/23/07] to replace the Teamsters at United Parcel Service of America Inc. and take control of UPS employees’ share of more than $50 billion in multiemployer pension funds and more than $1 billion in annual contributions...The APWA cited better pension fund management and higher pension benefits as key reasons for seeking to replace the Teamsters." SOURCE

Just who is the APWA? Van "Skillman and fellow tractor-trailer driver Danny Eason of Raleigh, N.C., founded the group after ending their Teamsters membership. Skillman, 49, has worked for UPS for 27 years and Eason, 52, has worked for the company for nearly 35 years." Skillman is the president of the union even though he has no prior experience running a union...(The APWA has hired) " Washington, D.C.-based attorney Francis T. "Tom" Coleman, of the Williams Mullen firm, to write the organization's charter and help it organize as a federally certified labor union.  According to a biography on the firm's Web site, www.williamsmullen.com, Coleman has a long history of representing Fortune 500 companies, trade associations and business and professional organizations in labor negotiations... Coleman has not represented the unions in their negotiations, however.

"They hired a labor-busting attorney and are going around making a bunch of promises they can't keep," Zuckerman (Teamsters Local 89 president Fred Zuckerman) said. "They say they will be able to offer full pensions after five years when they don't even know how to fund a pension. We have a very good strike fund, which was ratified in 2002, and they don't even have a strike fund. Their claims are just nuts." SOURCE

APWA Pension Claims-  "Our pension has been savagely and callously slashed for no reason. There is no reason that we shouldn't get $7,000 a month. Please recognize that while our Central States administered pension has been slashed, none of the other funds have been slashed. The real shame of the matter is that the Teamsters never intended to give you a fair pension. The Teamsters had you satisfied with getting less than 50% of your pension and it seems that even that was not enough; of course that was $3,000 a month when you should have been getting $7,000 a month. How much is going to be enough? You have heard from UPS Vice President John McDevitt that you are only getting 40% of the money that is paid in for you." APAW WEBSITE
The APWA expects to "take control of UPS employees’ share of more than $50 billion in multiemployer pension funds and more than $1 billion in annual contributions."
The breakdown of APWA pension goals can be found on their website.

UNANSWERED QUESTIONS:
  • If UPS pension becomes a "single employer pension" it will not be covered by the Taft-Hartley Act which protects only multi-employer pensions. It would be eligible to make a "lump sum" payment of pension rather than a monthly annuity. The pension plan can make that decision without pensioners agreeing to the sum.
  • The APWA cannot just takeover the $50 billion now in Teamster pension plans just because it may represent UPS workers.  There would be a withdrawl fee that would likely be in the billions of dollars. Who could afford that amount? Certainly not the newly formed APWA. UPS was willing and able to pay the withdrawl fee in '97.  What would stop the APWA from cutting a deal with UPS and the Teamsters that would be in the benefit of both of them and allow UPS to take over the pension?
  • With the new rules instituted by the Pension Protection Act of 2006 many Teamster pension are only 60% funded. How could the APWA suddenly have enough money to make a pension plan that would be able to increase pensions for more UPSers than are currently vested?
  • Since the APWA does not have the structure of locals that the Teamsters has, how do they propose to have more than one collective bargaining agreement (contract)?  A national contract without suppliments is something UPS has wanted.
  •  How do they intend to enforce a CBA without locals? Can you imaging the chaos of trying to appoint/elect an entire union structure across the United States?
 


UPS Pilots Are Denied The Opportunity To End Federal Mediation

The Federal mediator will not allow the IPA to be released from mediation. Thirty-eight months without a contract. It is unlikely that one is possible without some sort of job action. The scary part of this story is the Federal Government's attempt to block a strike. While it is possible that the Teamsters could honor the pilots' strike and shut down Brown, it is more likely that only pickets at airports would be honored.  Ground packages would not be affected, if that were the case.
In 2008, would the government try to intervene and stop a UPS/Teamster strike? It would seem likely given the stance of the government on the much smaller pilot's union. Would the Teamsters have the chutzpah of the N.Y. Transit Union and strike anyway? That would seem unlikely. The IPA has not yet issued a statement concerning the denial. Added 1/3/06



UPS to Deliver Menlo Flying Seven Months Late; Breaches Pilot Contract by Outsourcing Aviation until July 2006 

Tuesday, October 4, 2005 (Louisville, KY) – After months of deception, UPS finally owned up to the fact that it will breach its pilot’s contract by failing to deliver the flying from the Menlo acquisition on December 19, 2005, as promised. Under the Company’s new timetable, integration of Menlo flying into the UPS network will not occur until July 17, 2006. 

“This is not a matter of a Company trying in good faith, but simply failing to meet a contractual deadline. For months, we have received nothing but assurances from UPS that the transition of Menlo flying was on schedule,” said Capt. Tom Nicholson, President of the Independent Pilots Association. He went on to say, “the Company only admitted breaching the contract after the IPA obtained third party confirmation that UPS had awarded aviation subcontracts to cover Menlo flying well into 2006.” 

The IPA has been meeting with UPS on a regular basis since it announced the purchase of Menlo nine months ago. At all of these meetings, the IPA has been assured by UPS Labor that Menlo integration was on track and that IPA Crewmembers would be taking over the Menlo flying in December. UPS Labor is the same group currently negotiating a new contract with the IPA. 

“It is insulting to think that while UPS was making these assurances to us, they were canceling Airbus A-300 orders and negotiating the Scope clause of our new contract. All the while, they knew they were setting us up for a massive contract breach,” said Capt. Nicholson. 

“UPS’s timing could not be worse. This month, we will enter our fourth year of contract talks, our union is in the middle of leadership elections, and we are on the eve of the Christmas shipping season. This is the wrong kind of news to be delivering just before the most critical quarter of operations,” added Nicholson. 

The impact of UPS’s decision to outsource IPA contract protected work to a patchwork of carriers for the next seven months means the loss of a significant amount of new IPA flying. 

“It would be one thing if the Menlo Scope breach were an isolated issue. But, when you consider that UPS currently outsources six weekly flights to China Air to move computer parts from Asia to Nashville for Dell, and its current negotiating proposals on Scope, it becomes systemic,” said Capt. Nicholson. 

UPS Pilots Offer Assistance to Victims of Hurricane Katrina; 
IPA Delays Request for Release from Mediation Due to National Emergency

Thursday, Sept. 1, 2005 (Louisville, KY)- “After nearly three years of negotiations, the Independent Pilots Association (the UPS Pilots’ Union) intended to request release from mediation today. However, in light of the national tragedy following Hurricane Katrina, IPA pilots want to assist Gulf Coast residents by volunteering to fly relief missions to Alabama, Mississippi and Louisiana, without pay. We have also reached out to UPS to coordinate with the Company on this effort so that we can all do out part to help during this national emergency,” said Captain Tom Nicholson, President of the Independent Pilots Association.

As scheduled, the IPA has released the results of its final strike authorization vote, which was approved by a margin of 99% to 1%. Out of 2,459 IPA pilots eligible to vote, 97.7% participated in the balloting, which was held between Aug. 1 and Aug. 31. 

“By any measure, this is a strong show of solidarity among our crewmembers and a crushing rejection of UPS’s best offer after thirty two months of negotiations in five key contract areas: Scope, Scheduling, Retirement, Benefits and Compensation,” said Captain Nicholson. He went on to say, “ The five pilot IPA Executive Board is now fully authorized by the membership to request relief--at a more appropriate time--and to call a strike at the end of a thirty day cooling off period. For now, our thoughts and prayers remain with hurricane victims. We hope to work closely with UPS to provide much needed aid and relief to impacted areas.”

Teamsters Split From AFL-CIO

At first glance, the Teamsters quitting the AFL-CIO might seem as cutting their own throat. But the Teamsters have more in common with the dissident unions, than with the manufacturing unions of the AFL-CIO. Most of the six unions that broke off from the AFL-CIO are all in the service sector. "Within this world, opportunities for organizing are plentiful. Stern's [SEIU President]goal is to focus on the fast-growing, low-wage service jobs that are filled by the bulk of the country's working poor." (Business Week)
"'We must have more union members in order to change the political climate that is undermining workers rights in this country,' the Teamsters president, James P. Hoffa." (NY Times)
How sincere is the Teamsters desire for more members? The Teamsters have announced plans  to organize Overnite employees when they are under UPS's umbrella of companies (Union-Tribune

Teamsters to Organize Overnite and UPS's Response
SAN FRANCISCO, July 25 (Reuters) - The International Brotherhood of Teamsters said on Monday it plans to renew its efforts to organize Overnite Corp., the trucking company that has agreed to be acquired by United Parcel Service Inc. 

Overnite workers have resisted organizing efforts in the past, but the union's push could burden UPS management, according to one Wall Street analyst. UPS is also involved in contract negotiations with its union-represented pilots and dealing with disgruntled franchisees of its retail stores.

"The basket of labor issues is likely to be a strain on management and ultimately, financial performance," Legg Mason analyst John Larkin wrote in a note to clients. "Its labor issues should prevent management from focusing more of its time on the business and profits."

UPS spokesman Norman Black rejected the notion that UPS was unduly affected by labor issues. "Not one of those three things has anything to do with each other," he said. "Nor will they in any way pose any type of undue burden on management."

UPS employs 220,000 Teamsters-represented employees, making it the union's largest base. The world's biggest package delivery company has said it plans to operate Overnite as a separate delivery network once Overnite shareholders formally approve the deal on Aug. 4.

In a statement, Teamsters President Jim Hoffa said the union has begun putting together a plan to organize Overnite's workers. The company has about 14,000 total employees, who have rejected the Teamsters' overtures in the past.

"We will organize Overnite, and give these workers the strong voice on the job that they deserve," Hoffa said in a statement.

The announcement came the same day the Teamsters announced an historic break from the AFL-CIO labor group in a dispute over shrinking union rolls and the direction of organized labor. (Teamster.org)
 UPDATED 7/29/05

Unions' Wish List
Companies that unions most want to organize. (CNN Money) FedEx is on the list.

The Canadians Ratify 6 Year Agreement 


After voting down a proposal by UPS by a wide margin, 3800 UPSers were on the picket lines.  The issue seemed to be money. A Canadian package car driver makes $21.54 Canadian. That's about $18.24 US.  Not many US package car drivers would endure the "BROWN culture" if they made that. Also consider that Canada is not a cheap place to live. For instance, Canadians pay about $3.25 Canadian for a gallon of gasoline. 

About 40% of UPS's Canadian delivery volume comes from the US. Canadian shipments represent about 1% of UPS's total volume. US shippers might have jumped to the USPS or FedEx for their Canadian shipments or even all their international shipments. As we saw in ' 97 some of those shippers were lost for good. That scenario and the fact that the Christmas rush is imminent were probably factors that might have made this a short lived strike.

NABER had heard that some Center Managers were telling Canadian package car drivers not to inform customers of the impending strike, so as to not lose volume. Management must believe that customers prefer to be lied to rather than basing their shipping decisions on informed judgement.

The Pilots' Union Break The Strike
The Pilots' Union had announced that they would honor the strike and not fly packages into Canada. “The Independent Pilots Association has the contractual right to honor primary picket lines against the company established by other unions who represent UPS employees,” said Capt. Tom Nicholson, President of the IPA. He went on to say, “in 1997 not one IPA member crossed a Teamster picket line during the IBT’s 16-day strike of UPS.”  In a statement, the Independent Pilots Association claimed UPS had moved management pilots into Canada from the United States in an attempt to break the strike by having non-union pilots fly goods out of Canada. ARTICLE "It is not our goal to shutdown UPS. Our hands will be forced, however, if UPS attempts to break the strike by moving struck goods into the United States and this triggers Teamster primary picket lines in this country." Nicholson said the pilots union would provide UPS with 24 hour notice before leaving their duty positions worldwide. ARTICLE  Management pilot had made Monday's 6 flights to Canada.

Less than 48 hours after the strike began, UPS and the Canadian Teamsters have an agreement. NABER will publish details when we have them. But even if the membership votes the proposal down, UPS Canada will probably be working through peak.  The previous offer that was voted down offered full timers $.60CAD per year.

NABER would appreciate any info about the Canadian contract. Email it to info@naberinc.org

TDU.org has an article that states, "the U.S. Teamster leadership did nothing to extend support leading up to or during the strike. In fact, although this was the largest Teamster strike of the year, it was never even mentioned on the Teamster website until it was over! (Then it got 5 sentences, with no mention of any issues.) No information was issued to the 200,000 UPS Teamsters in the U.S. or even to local unions, to build solidarity across the border. There were no offers of solidarity if picket lines came to the border or U.S. facilities or air hubs." 
It seems as if the President of the IPA (Pilots) had more of an impact than the President of the IBT (Teamsters) at bringing a quick end to the Canadian strike.

UPS Canada has offered 2 days of free shipping to businesses with a daily pick-up account as restitution for lost service and convenience.

The Deal (as posted on Teamster.net)
Six year agreement.
"1) The union will end its strike and the employees will immediately return to work. 
2) Both parties will undertake to do everything that is necessary in order to restore full and normal operations as quickly as possible; 
3) The employees will be asked to vote on the new agreement in principle concluded on Nov.23.2004; 
4) The parties agree that no further strikes,lockouts, or slowdowns will occur to Jan.16.2005, even if the new agreement in principle is rejected by the employees. Date Nov.23.2004 

Pension $ 56.50 starting in year 2007 

Daily guarantees for all full and part time employees shall be suspended until Dec.13.2004 

DURATION  August 1 2004 to July 31 st 2010  

Wages; Full time $ 3.30 = ($.30 X 11 ) 
(Feb 1 , 2005 - Feb 1 2010 

Part time $ 3.45 = ( $.45 X 1 ) + ( $.30 X 10 ) 
Feb 1 2005 ( Aug 1 2005 - Feb 1 2010) "


Dirty Tricks

UPS management had threatening that UPS would pull out of Canada if the contract was not ratified. UPS negotiators allegedly stated that UPS would have refused to negotiate further with the if this offer was not accepted.  UPS would have transported international freight to Canada through a courier "agent". 
This tactic by UPS is similar to the "final and best offer" tactic used by UPS in the 1997 contract talks in the United States.
 
UPS Caught In Untruthful Press Release
During the Teamsters Canada strike of United Parcel Service, UPS spokesman Norman Black said in an e-mail to The Associated Press, "That statement is a lie. There are no management pilots flying in Canada. There are no management pilots trying to break a strike."

Mr. Black's statement was made after the Independent Pilots Association, UPS's pilots union, claimed UPS had moved non-union management pilots into Canada from the United States in an attempt to break the strike by having them fly struck goods out of Canada. 
To set the record straight, the IPA released a list of UPS flights flown between Canada and United States by management pilots during the Teamsters Canada strike. 

Link To A Letter By Larry McDonald President Of Local 938 

Dec. 14 The Last Local Has Voted. The 6 Year Argreement Is Ratified.
Local 938 (Toronto) were one of the last locals to vote on the new contract. They voted December 14th in walk in poles close to the hub. . One had to wonder if there were enough votes left to overturn the majority of Canadidan UPS who have voted to ratify the contract. Overall more than 70% voted for the contract.

There are reports that key Teamster leaders were not allowed in the final bargaining session. There is also a lot of blame being thrown about as to:
  • Why the first purposal was not approved and a lesser offer being forced upon UPSers?
  • Did TDU have an adverse affect on the election?
  •  Who made the decision to keep certain negotiators out of the final session?

 








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Disclaimer that UPS can discontinue the new UPS/CS pension plan at any time.