My fellow co-workers at UPSF/Overnite,
Here we are almost two years from the time we heard the news about UPS buying our former employer, Overnite Transportation. Things have changed quite a bit lately as you may have noticed.
Most of you are aware of the labor issues facing us APWA or Teamsters.
Also, most have an interest in your Pension and the multiple weeks of vacation time you’ve gained thru hard work. The vacation weeks most of us can agree are very nice, but we really could live without them for the most part. Now if you need to find another employer you’ll find most don’t offer a Pension anymore or you may be too old to start over. When you consider Social Security’s poor financial footing and the very real possibility of your Overnite/UPSF non-Union Pension being turned over to the Teamsters and their well documented financial short falls (*2004 Central States Pension was funded at a 54.6% margin). You see that you only have the 401K left to retire on. Again the prospect of this is very disturbing. You may get some or all of the Social Security depending on your age, but for us looking to retire in the later part of 2020 you find Social Security is currently scheduled to be broke by 2027. This means massive cuts in pay outs to some of us basically leaving pocket change each month. The kicker is the Teamsters have, and still offer us, 2 for 1 on your UPSF/OVNT seniority. 30 yrs. with Overnite/UPSF equals 15 in the Teamsters scheme. What a deal right? Since the teamsters can’t even give $100 per year of service. due again to the financial mismanagement in the past, you currently could reasonably expect to receive $1100 per month with 15 yrs of Teamster style seniority. Forget your spouse getting anything worth mentioning. Why surrender any of this when we have a chance to have it, at the very least, the same as it is now? Ok, the APWA is new, so what? 99% of new cars run great, should it fail then decide on the Teamsters offer. Why surrender anything to the group that wanted to close down our company just a few years back?
Some other facts for you to consider regarding your Pension. Overnite Management told us the Pension was untouchable right? That is a half truth at best. A Pension is a Trust Fund basically, these Funds have a Board of Directors made up of different persons. Now, a pension such as Overnite’s could be moved somewhere by two and only two methods. The first is the plan’s Fiduciaries/Directors signs *(a plan must have at least one fiduciary) control over to another Firm/group etc. This is how we got shafted during the sale to UPS. We never were given the option of a completely independent firm on Wall Street managing our Trust/Pension. Overnite’s Board GAVE it to UPS. The other method to transfer a Trust/Pension is by Court Order. (Please follow the numbers) Approx. 800 million at the time of the transfer from Ovnt to UPS. UPS pays approx. 1.2 billion for us. Leo Suggs and Mike Eskew were buddies in the videos remember? Things were gonna be great. Gordon Mackenzie puts out the Teamster violence DVD from the strike. You may recall he got smacked by Mike Eskew (CEO of UPS) in a memo shortly after the DVD came out. (Flag #1) Then the gentleman’s agreement with the Teamsters came out. Leo suddenly retires (Flag #2) You may recall our management reading the letter to you in the break areas. Now, consider the financial position the Teamsters Pension is in? 54.6% funded in the 2004 report or currently at approx. 60% (Flag #3) Also, factor in the fact UPS pays a huge amount into the Teamsters Fund, The Teamsters need every penny and haven’t been gaining membership for years. Mike Eskew is a lot of things to us, but the man is very smart with business and numbers. He realizes the Teamsters need the piles of cash they get from UPS to continue. This means bargaining power for Eskew at the table, now Mr. Eskew buys OVNT for the 1.2 billion. Plus gets 800 million bonus from OUR OVNT Pension. (Flag#4) At no cost.
Now Overnite is also something the Teamsters want. For no other reason but bragging rights and 15,000 more members. Now, Mr. Eskew; holds the Purse, the coveted Overnite and it’s Pension. All things the Teamsters want or need to help carry on their enterprise. Someone please help me see how this translates into bargaining power for the Teamsters at the negotiating table? Ok, maybe you see my point. But, besides the labor rep issue, the employee’s of OVNT/UPSF are getting used, screwed and tattooed 1.2 Billion minus 800 million, our Pension value and Mr. Eskew gets Ovnt lock stock and barrel for a mere 400 million dollars. BUT you say the Pension isn’t his cash to spend! Right you are my friend. Back to the bargaining table, approx 250,000 union employee’s (this includes UPSF) pay and benefits are being negotiated. A simple reduction or NO Increase in something costing as little as $6.41 per employee PER DAY or $1,666.67 per YEAR for three years of a contract earns/saves UPS $1,250,000,000 basically paying for Overnite all on the backs of the employees from Parcel and Freight.
The bottom line here people is WE the EMPLOYEE keep getting the shaft. Mr. Eskew is happy, Wall Street is happy and the Teamsters are happy, at the International level anyway. By not getting better pay or a better medical plan in the next contract Hoffa and his buddies get just about a billion extra cash dumped into the Central states fund for nothing. That Billion is OUR BLANKING PENSION!!!
A Billion dollars sounds like a huge amount of money right? Not in the world of 13-15 Billion short falls that exist in the Central States Pension Fund. One Billion means nothing. Remember the part about the TWO methods one can get control of a Trust/Pension? The Court Order or the Board of Directors signing control over to some other entity. Last time I checked nobody from OVNT/UPSF was holding a seat on the UPS Non Union Employee’s Pension Board looking out for our interests!
WHAT ARE THE CHANCES THAT THE OVERNITE PENSION MONEY WONT GET SIGNED TO THE TEAMSTERS?
Now, what about a pension board consisting of 12 members? 3 UPS employee’s, 3 UPS retiree’s, 3 Wall Street types, 3 members of UPS Management? This arrangement makes it about as secure as anything can be when people are involved. This is why the APWA should be our first choice as our Labor Representation. Our most important benefit, our pension will be under OUR control!
Speculate all you want as to who’s side I support, I support the side that gives me a voice and a blanking chance at seeing my Pension in full. Go look or for yourselves.
Thank you,
LEX/UPSF/RDDR “Our People Make The Difference”
Information Source * for Teamster funds.
Also, DOL/EBSA /James Pullen (202)-693-9999 “What you should know about your retirement plan”