Transportation giant UPS said it’s studying the issue of federal bailouts for financially ailing trucking companies but wouldn’t comment directly on competitor YRC Worldwide’s request for $1 billion in federal aid.
“The bottom line is, we don’t comment on the financial difficulties of our competitors,” said UPS spokesman Norman Black. On whether the treasury department program which has so far has sent money to the banking, automobile and insurance industries should be extended to the trucking industry, “we’re still looking at that,” Black said.
UPS paid $6.1 billion to pay off its pension liability in the Central States multi-employer pension fund in 2007 that covered approximately 40,000 of the company’s 240,000 employees. UPS continues to pay into a new plan set up between the company and the Teamsters union and 20 other Teamster union pension plans.
One Wall Street analyst wondered, “If YRC is allowed to get $1 billion from TARP, is UPS allowed to get a $5.1 billion refund?”