When employers, includeing UPS, paid their contractually negotiated contributions into the Central States Pension Fund, that was not the end of their responsibility. If the Fund was only say, 70% funded, the cumulative negotiated contributions represented only a 70% payment, the remaining 30% was still legally owed. Thus, when UPS negotiates the contribution rates, and tries to keep them low, it knows it is underfunding the Fund, and is legally liable for a sizeable Withdrawal Payment should it seek to leave the Fund. That 's why when UPS "generously" offered to pay $4 billion to withdraw from the Fund, the Fund said, ah, excuse me, but you legally owe us $6.1 billion, and not a penny less. It was a debt UPS owed, not an "outrageous fine."No, employers (per se) did NOT "underfund Central States"; rather, they paid their negotiated contributions....UNLESS they were put out of business by the Teamsters (which, for example, was the case with 90% or more of the LTL employers) and were no longer able to pay into the funds. Or afford the withdrawal fee, for that matter.
What did the Teamsters do in reaction to these employers going out of business and leaving liabilities behind? Did they reduce the pension payouts? Did they organize new employers to keep up the contribution level? Nope...they did neither, counting on the remaining employers to make good THEIR (the Teamsters) screw-up.
Lastly, as "pitiful" as the UPS pension fund for the part-timers is (pension accrual rates or whatever), it has to be immeasurably better than "nothing", which appears to be what plans such as Cen. States will have to offer. Nor do the majority of the p/t'er - those who DON'T plan on retiring from UPS - have to look at the monies that are gathered in THEIR name being handed off to a Teamster plan from which they'll NEVER derive any benefit. 'Course, the Teamster plans like the idea because (1) they collect the funds based on the employee while (2) realizing it's more than likely the employee in question will never vest any earnings from those contributions.
As for your claim that "ll the Teamsters could do is try to negotiate higher contribution rates", that's absolute B.S. They could have done a myriad of different things to correctly alter the situation. First off, they could have stopped being so damned greedy, and behaved in such a manner that employers could stay in business and/or not go out of business simply to avoid being infested by them. That, of course, goes hand in hand with organizing new employers to replace the ones they cast aside. That, however, is difficult when the Teamsters created for themselves a reputation in which companies quite literally see "organization" by the Teamsters as 'the kiss of death" (and, given history, that view is quite justifiable). Lastly, they could have reduce payouts to match income...but that would have antagonized those who see things like you apparently do; i.e. - that's there's an inexhaustible supply of OTHERS wealth available to pay the bill.
Beyond that, there was simply no way for UPS to "shore up the fund"; that would have been like trying to mop us the sea. The six billion or so that was paid is, by all "fairness" means, an outrageous fine to pay for the transgression of being involved with the Teamsters. As for the withdrawal itself, one saw the writing on that wall with the resolution of the '97 strike, in which Central States and the Teamsters "blinked" to end the standoff by agreeing to the $100,000,000 concession to UPS in order to avoid bankrupting the fund at a much earlier date.
Anyway, in terms of what "anyone can see", there IS a lot for "anyone to see"...but they're going to actually have to use their OWN eyes, instead of looking through the rose-colored lenses the Teamsters have set in front of them for decades now.
Incidentally, If a 17 year old UPSer is covered by a multi-employer pension fund, and he gets Vested in five years, UPS guarantees that man's pension until he (and his surviving spouse) die. If he (or his surviving spouse) lives to be 97, that means UPS is legally responsible for 80 years. If UPS is still around and still a contributing employer, it is legally responsible for fully funding that UPSer's pension for the full eight decades. Any time the assets of the Fund drop below 100% during that period, UPS is legally obligated to make up the difference one way or another. This is why UPS abandoned the Fund and also orphaned those UPSers who, at the time, were retired, or seperated and awaiting retirement.
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The accrual rate for the new UPS/IBT plan is currently $147 toward your future monthly pension benefit. That's lower than any other Teamster-sponsored plan covering UPSers . The accrual rate for my New England Teamsters and Trucking Industry Pension Plan, which is in terrible financial shape, is $248, by comparison.
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UPS has made it almost impossible for the Teamsters to organize any new bargaining units into Central States. UPS withdrew, seriously damageing the fund. UPS kept UPS Freight out of the fund even as it allowed the Teamsters to organize the unit without objection. UPS and the Teamsters (and especially you) make it clear that any new bargaining unit will be organized not for their benefit, but to hamstring them as they compete with UPS. Their contributions to Central States would not be used exclusively for their retirement, but confiscated to make up for the fund's past losses. Who would join the Fund knowing such things?
As an Olympic Sponsor, UPS fancied itself as a team of industrial athletes engaged in the spirit of Olympic competition. But their real inspiration is Tonya Harding. Win by crippling the competition.
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Trucking companies go out of business for lots of reasons, just like companies in other industries: de-regulation, over-regulation, poor management, high taxes, bad luck, costs of 9-11 and the ongoing threat of terrorism, etc. Not to mention having to compete directly or indirectly with UPS, the 800 pound gorilla in the room.