Category Archives: UPS

The UPS/IBT Pension Plan and Contract Negotiations 2013

     Here is a discussion of the guarantee for benefits posted by George in 2009. The guarantee applies to drivers that retire prior to the 2013 contract.
     While it is assumed that the guarantee will continue under the newly negotiated contract, that assumption is not for sure.
     Any of you drivers that will not retire prior to August 2013 better be on the phone to your Local Union Officers to make sure that the National Negotiating committee has this discussion with the company. If the guarantee is not continued, many of you may be subject to pension benefit decreases with the failure of the Central States Pension Fund.
     Please note that the CSPF is not failing, but due to federal law, they have been forced to reduce benefits to maintain solvency. Posted by Bob Sep. 2012

 When UPS set up the UPS/IBT Full Time Pension Plan for employees covered by the Central States Plan (CS), it covered active employees only. You have to work at least one day after Jan 1. 2008 to go with UPS out of CS and into the new UPS/IBT Plan. People who retired before Jan 1, 2008, or for any reason were not able to work one day after that date remain in the Central States Plan.


For those who went into the new plan, UPS will pay their pension until they reach the age of 65, then most of it (about 90%) will fall back on Central States. At that point, retirees will get 2 checks one from UPS and one from CS. If Central States is not in good shape and cannot meet their obligations to these retirees, then UPS will make up the difference to guarantee your full pension amount for the rest of your life. UPS is assuming this obligation until age 65 to remove retirees from the CS re-employment restrictions, which are quite severe. Those restrictions are removed at CS at age 65. It was one of the selling points to get UPSers to accept the UPS pension plan.

Those who remained in the CS Plan and did not go to the UPS/IBT Plan are at the mercy of Central States and their full pension amount is not guaranteed. Under the Pension Reform Act of 2006, Central States will never be allowed to fold up and let their obligations fall on the Govt Pension Guar. Corp. Central States will always have to remain in existence and pay pensions at whatever level they can afford. It could be the full amounts or any percentage thereof.
So for retirees who voted for the new Pension Plan and will retire under the new Plan, it’s a pretty good deal. It guarantees a full pension for life. But what about oour brothers and sisters who retired prior to Jan. 1, 2008? They stay with CS and have no guarantees.
Should we have stayed with Central States and rejected the UPS offer?

The problem with staying in Central States as opposed to going with the new UPS/IBT Pension Plan is that if we stayed in CS and CS went down, we would go down with it. I have always felt that I will outlive CS. That means I feel that by the time I reach 65 or 70 or 75, CS will no longer be paying full pensions. The new UPS/IBT Pension guarantees my full amount for life. That is a better deal for me as I go into my golden years.

Central States unfortunately does not have a good track record for being healthy. They have already reduced the amounts members accrue towards their pension. They do continue at this time to pay out full pension amounts, but not at the amounts the did prior to 2003. In 2003, they reduced the accrual amounts to about 85 cents on the dollar, with a 6% per year early retirement penalty. So if you retired at 57 with 30 years today, instead of $3000 a month, you would recieve about $2650. You would get the $100 for each year of service up to 2003 (24 years) but only about $85 a month for the last 6 which accrued after 2003 and that amount would be reduce by 6% for each year you were under 62 or 36% of the $85. So people accruing a significant amount of their pension after 2003 would get a lot less than the expected $3000 at 30 and out, especially if they were under the age of 62.

The cost of insurance from CS, which UPS matched both coverage and cost to retirees, was upped in 2003 from $50 to $255 a person and set to increase $50 each year until you reach Medicare age. So for you and the wife, it would be 510/month the first year, then $610 next year and so on. If you retired at 57, by the time you reached Medicare age it would be $1400 a month. Under the UPS/IBT Pension, the same insurance is $200/person guaranteed not to increase for the life of the contract.

Even more scary, last year CS sent a letter out to all participants (which officially we still are) saying that despite the infusion of cash from the UPS buyout, they were slipping into the dreaded Red Zone and would be forced to make cutbacks again because of the requirements of the 2006 Pension Reform Act which say they must stay viable and cannot fold. One area that they were looking at for cutbacks was eliminating the ‘and out’ language, meaning you could retire at 57 but could not pull a penny of your pension until you reached retirement age of 65. For anyone looking to get out of UPS before the age of 65, that would mean finding alternate employment until you reach retirement age and could begin receiving your pension. That would be totally unacceptable.

Central States once had 115 companies paying in to the fund, they are now down to less than 20. UPS felt that under the new 2006 Pension laws that say active companies in any underfunded plan must pony up more money, they were going to be left holding the bag for Central States. All the retirees from all the folded companies still get their pensions and the 20 companies still standing have to fund those pensions plus their own. So UPS wanted out. And as you can surely see, the guanantees and the insurance costs to retirees were a good deal for UPS employees voting in December of 2007. It not only restored the full pension amounts ($100 per year for 57 and older) but also guaranteed a defined benefit amount for life. And the insurance was cheaper.
Did UPSers sell out their own UPS brothers and sisters who retired prior to 2008? There was surely no reason to hang with the ailing Central States other than Brotherhood.
Granted, Brotherhood is a noble cause. It’s the very foundation of unionism.
But at what price??

Operation iPhone Drop: From Cargo Plane to Door Stoop




On Friday parcel carriers will deliver over 1 million new iPhones to early adopters, in a kind of secular Christmas for gadget lovers everywhere. Behind the scenes, Operation iPhone Drop is a massive logistical ballet, reliant on a clockwork collaboration among Apple, Chinese manufacturer Foxconn, U.S. Customs officials at the border, and shippers like FedEx and UPS.


“I have heard that 70 charters have already been booked to come out of Asia in the next few weeks,” says research analyst Kevin W. Sterling of BB&T Capital Markets. “I think that most of that, I can’t verify it, but I think most of it has been booked by Apple.”


Apple launches historically trigger a six-week long jolt to the global shipping system, according to Sterling. During the iPad release in March 2012, the increase in volume drove up shipping prices from Asia by 20 percent in a week, Sterling estimates, “because Apple came in and bought up so much air freight capacity.”


“It’s fascinating to see one company influences the market so much. We’ve never seen something like this,” Sterling says.


Once the gadgets land in the U.S. and clear Customs, delivery services spring into action. That’s where the fun begins. At UPS, Apple launch days begin with organized pep talks a few minutes before the drivers hit the road, according to a UPS driver who spoke with Wired on condition of anonymity. In that early morning meeting drivers are reminded of how important the day’s deliveries are, and briefed on special procedures.


“One thing we do is if we can’t complete the delivery by the end of the day, what we have to do is offload those packages,” the UPS driver said. “We have to bring them to our supervisor and put them in their offices.” The supervisor then locks up his or her office, keeping all those iPhones safe until the next day.



“Apple is huge customer for UPS and they go through great lengths to take care of them,” the driver added. (A UPS spokeswoman declined to comment on the company’s partership with Apple. FedEx, which also delivers iPhones, did not return a phone call.)


The driver described a palpable excitement while delivering the first batch of Apple goods. Some people take the day off to receive their device at home — not a bad idea, because all Apple deliveries require a signature. ”It’s amazing; people are waiting by the front door and on the porch,” the driver says, “They’re out there at 10:30 a.m. waiting.”


At one delivery last year, the driver recalls, “This lady came out of her house, walked down her driveway while I was in the back of the truck grabbing the packages. When I came out, she was sitting there at the curb waiting for me. I was like, ‘Wow.’”


The driver even shared an iPhone 4S unboxing moment with one customer. ”I got there kinda early and said, ‘Hey, let’s open it up and look at it.’ … We opened it up together. I’d heard about it, but I hadn’t seen one up until that moment.”


Surprisingly, the excitement of customers on an Apple product release is only slightly higher than a usual work day. On a scale of 1 to 10, the usual day ranks as a 6, while iPhone day ranks at an 8 or 9, according to the UPS driver.


“We’re always bringing stuff that people want,” the driver says.


There’s probably a large amount of post-delivery giddy dancing going on behind closed doors.
wired.com


Leadership Needed on Fiscal Debt, Global Trade, Says UPS CEO

UPS Chairman and CEO Scott Davis called on leaders in Washington, D.C., to prepare a bipartisan debt reduction plan by January, saying the nation’s economy is being held back by its debt load and the uncertainty of fiscal policy.

“It’s not too late to act,” asserted Davis, adding a debt reduction plan should be drafted now for immediate consideration when the newly elected Congress returns in January.


“I believe it’s realistic to have it approved early next year,” said Davis. “If our leaders work together and can compromise, we can deal with these problems and get our nation on a sustainable fiscal path.”


In a speech prepared for delivery later today to a gathering of Washington state business leaders, the UPS CEO described the United States as having reached a crossroads.


“At this moment, our country’s Board of Directors — the President and Congress – are facing not one, but two self-inflicted crises: the impending fiscal cliff and the crushing trade imbalance.


“Because Congress couldn’t agree on common sense fiscal reforms last year, we now face a double whammy of potential shocks to our economy,” he added, citing automatic spending cuts and tax increases that are slated to kick in at the beginning of 2013.


Uncertainty about the looming “fiscal cliff” is causing many businesses to delay spending decisions, he said.


“When companies don’t spend and hire, the business engine driving our country sputters along. And the economy stagnates.”


Davis said the gridlock in Washington fosters doubt about the near term future in the minds of business leaders. “We need a predictable environment in which we can plan, invest, hire, grow, trade and prosper.”


A former chairman of the Atlanta Federal Reserve’s Board of Governors and a member of the CEO Fiscal Leadership Council, Davis also is supporting a new campaign called “Fix the Debt.” The effort is being led by former U.S. Senator Alan Simpson and President Clinton’s Chief of Staff Erskine Bowles.


Davis supported the work of a bipartisan debt commission led by those two men that called for lower tax rates, fewer deductions and common sense entitlement reform. While no plan will ever be perfect and agreed upon by all, bipartisan compromise must be achieved to reach a deficit reduction of at least $4 trillion, he added.


Davis also called on U.S. leaders to demonstrate stronger leadership on global trade. He applauded recent deals with South Korea, Colombia and Panama but added: “These recent trade deals should be the first of many, not the last in memory.”


The 19 trade agreements currently in effect are inadequate, he asserted. “Trade has always been the world’s most powerful engine of growth, job creation and prosperity.”


During his remarks, Davis told the story of Jim Casey’s founding of UPS in the Seattle area in 1907 as a small bicycle messenger service, describing in some detail the company’s evolution into a global logistics leader that delivers an average of 15.8 million packages a day in more than 220 countries and territories.


He contrasted the company’s transformation over the past 105 years to the federal government’s rigid and ideological approach to dealing with today’s challenges.


“I want our elected officials in Washington, D.C., to start running this country the way we run our companies: with real leadership, courage, discipline and foresight. Simply put, we need our representatives to reach out more and to dig in their heels less. Our country needs pragmatic leaders who work together to solve problems.”
4-traders.com

Teamster Proposals
















UPS Contract Proposals Set


Sept. 21, 2012: The International Union briefed local union officers in Chicago today on the union’s proposals for UPS contract negotiations. Bargaining on the national contract opens on Sept. 27.


Chief negotiator Ken Hall gave a presentation on key contract issues while local officers reviewed briefing books with a partial list of the union’s contract proposals.

Union bargaining proposals will reportedly include:


Pension Increases: More money for pensions, including increases in the benefits paid by the IBT-UPS plan that covers 48,000 full-time UPSers in the Central and Southern regions.


Full-Time 22.3 Jobs: More full-time 22.3 jobs and language that would require the company to maintain 22.3 jobs in the local union where they are created.


Protection for UPS Technology: Language to protect drivers from discipline solely based on GPS and telematics technology.


Wage increases including increases in starting pay for part-timers which has been frozen at $8.50 since 1987.


Regarding Surepost, Hall said it is up to UPS to propose language that protects Teamsters from the controversial program if the company wants the union’s continued cooperation with Surepost.


Hall noted that harassment and excessive overtime were key bargaining issues, but did not reveal specific contract proposals the Union will put forward.


Hall promised that every Local would receive a complete copy of the union’s bargaining proposals when the company and IBT exchange proposals next Thursday, Sept. 27.


For the first time ever, local officers were not allowed to keep copies of the union bargaining proposals. Hall said TDU would post the proposals for members, before he hands them to management next week.


TDU’s Make UPS Deliver network will keep members in the loop with contract updates.
Click here to sign up for contract updates from TDU.

Child Locked in UPS Dropbox

BUENA VISTA TOWNSHIP, MI (WNEM) –

Truck driver Michael Ford made a stop in Buena Vista Township located just outside of Saginaw last Thursday. That’s when he saw a frantic parent trying to rescue his four-year son from a United Parcel Service drop box. It all happened at the Flying J truck stop. Apparently the kid got in the mail box through an open door. The child’s older brother closed the door behind him and he became trapped inside. The boy’s father didn’t have a phone and that’s when Ford stepped in to help.


“He was freaking out throwing his arms up saying ‘my son’s trapped inside! My son’s trapped inside!’ After I made the 911 call it was like 10 minutes and they showed up,” Ford said.


Aaron Hoeppner is one of the firefighters called to the scene that day. WNEM caught up with him to get his thoughts on the rescue. When Hoeppner arrived he feared the worst. Just moments later he got a delightful surprise.


“We opened the drop door up just a crack there and you could see two little eyes staring at you, which I thought was kind of funny. I was trying not to laugh,” Hoeppner said.


The child wasn’t hurt and stayed calm as firefighters used a crowbar to free him.


“He was just sitting there crossed leg right there on the ground and he climbed out and went to dad and that was pretty much the end of it,” Hoeppner said.


Meanwhile, Ford says he’s glad he could help out. And he hopes he never has to see another drop box rescue anytime soon.


“The UPS drivers need to make sure those doors are locked when they leave,” Ford said.


The United Parcel service released the following statement on the rescue:


“UPS is grateful for the quick action by the truck stop staff to contact emergency officials and their quick response to the scene with no injury to the children.


UPS has a very experienced professional driver on the route. We have no reason to believe he didn’t follow his regular protocol to close the drop box door after he made his pickup around 5/5:15 p.m. Thursday. We can’t speculate if the latch did not catch or how the children may have opened the door later in the evening. Responders quickly freed the child, who was unharmed.


The Flying J has removed the drop box from service for the moment, and UPS will replace it with new equipment this week.”


Meanwhile The Flying J released the following statement as well:


“On the evening of Sept. 6, a child crawled inside an unlocked UPS drop box located at the Flying J Travel Plaza in Saginaw, MI, and was safely freed by local firefighters. The drop box located outside of the store appeared to have been mistakenly left unlocked by UPS personnel.


Pilot Flying J thanks and applauds the store’s employees for acting quickly to contact the local authorities to ensure the child was freed without harm. The safety and wellbeing of our customers is always a top priority at Pilot Flying J.”

Baby boomers find retirement age now a moving target



 



Posted: 09/02/2012 12:01:00 AM MDT
By Diane Stafford
Kansas City Star





     KANSAS CITY, Mo. — Just how much the Great Recession reshaped what many baby boomers thought retirement would look like is becoming clearer: More than ever, they now expect to retire later or work when they’re “retired.”
     In 1991, just one in 10 workers told the Employee Benefit Research Institute that they planned to wait to retire until they were older than 65. By 2007, three in 10 said that.
     This year? More than four in 10.
     Boomers cruising toward a traditional retirement suffered a financial comeuppance in the prolonged economic slump that began in late 2007. The downturn sapped jobs, stock and housing values, and interest on savings.
     Many were also caught in the shift from defined-benefit pension plans to 401(k) plans that required workers to contribute toward their own retirement savings. Some didn’t, a choice that will leave them short financially.
    Small wonder that, according to the Pew Research Center, boomers are the gloomiest of all age groups about the health and future of their finances. Boomers were more likely than other age groups to tell Pew researchers that they lost money on investments since the recession hit. Nearly six in 10 said their household finances worsened.
     Finally, employment-based health insurance for many retirees has been withering away, which is causing older workers to cling to paychecks.
     Overall, the stage is set for a new normal: working in retirement.
     That suits William Brockman just fine. The 65-year-old working retiree began a job this year at a child-care center in Overland Park, Kan., where he delightedly calls himself “a shepherd to flocks of children” four days a week.
     Brockman worked for the federal government for 33 years, leaving at age 59. But he soon found he needed to better his financial situation and have more contact with people.
     “I truly believe the more active one stays, both mentally and physically, the better the quality of life,” Brockman said.
     So his first post-retirement job was as a grocery store courtesy clerk. When that ended, he jumped at the day-care center opportunity “in order to have more income, and I found that in retirement every day is Saturday, so to speak. Now my days are special.”
     The number of older workers has grown more rapidly than any other age group in the last few years. This year, 18.6 percent of those 65 and older were participating in the labor force, compared with 13 percent in 2002.
     At the same time, older workers represent a disproportionately large share — 40 percent — of people who have been trying to get back into the workforce for at least a year.
     The scramble for re-employment is made more desperate for some who fight age discrimination and outdated skills.
     “The prospects are dim for older workers who lose their jobs,” said Christine Owens, executive director of the National Employment Law Project. “They have the highest rates of long-term unemployment of any age group.”
     The unemployment rate of 55-and-older workers jumped from 3 percent at the end of 2007 to 7.4 percent in 2010 and settled at 6 percent earlier this year.
     Among the 65-and-older group, the jobless rate, which for years was 3 percent to 4 percent, pushed above 7 percent in 2010 before edging down to 6.5 percent this year.
     Demographers warned for years about social and economic stress when baby boomers began “retiring in droves.” After all, boomers — representing slightly more than one-fourth of the U.S. population — are hitting age 65 at the rate of 10,000 a day. One in every four 65-year-olds today will live past age 90, and one in 10 will live past 95.
     That’s a long time to be retired. And it’s guaranteed to stress the Social Security and Medicare systems. Younger age groups, needed to keep paying into the system, aren’t as big as the boomer group that will draw benefits in ever-greater numbers.
     As the nation’s largest generation noses toward Medicare eligibility at age 65 and full Social Security benefits at 66, about two-thirds of the boomers are continuing a longstanding American trend of “early” retirement before they reach those landmarks.
     The Employee Benefit Research Institute finds that today’s near-retirees are more likely than ever before to expect to continue working for pay beyond their “official” retirement.
     Those expectations are a stark contrast to the actual work experience of already-retired Americans. While about seven in 10 current workers say they expect to work for pay in retirement, only about two in 10 current retirees have actually drawn paychecks since they retired.
     Bill Smith, 62, of Kansas City considers himself both retired and working. He took an early retirement offer from Teva Pharmaceuticals. Then he promptly returned to the same company in a three-day-a-week contract position that has more flexibility.
    It’s a fact of life, though, that about one in three people becomes disabled before retirement.
     Social Security remains most boomers’ hope for retirement income. On average, U.S. workers are beginning to take Social Security benefits at age 63.8. That average fell by more than five years between 1945 and 1970. After that, though, the average has stayed fairly stable, noted Monique Morrissey, an economist who wrote “The Myth of Early Retirement” last year.

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