With the Pension underfunding...They haven't even scratched the surface with this contract...Both parties are waiting it out till the 2023 contract than most of the current leadership will be replaced or retired, and maybe, just maybe there will be a fair settlement from both the Union and Company.
5000 new 22.4s positions created in the last 4 years of this tentative will not create enough monetary contributions to correct most of their suffering pensions funds. I suspect that most of those new positions will be created in areas where they have Teamsters controlled monetary contributions plans in the West and East. The Central and South are under the defined benefit plan of the IBT/UPS which was the Central States area. I could be wrong, but just from reading the tea leaves it appears that the Central will be close to default by 2023. This contract is a 32 cent GWI increase over the next 5 years over the previous one and no real improvements in the Pensions and Health and Welfare benefits considering the monetary contributions that is suppose to be going into those trusts, especially in the Central and Southern.
This contract was set up a a bridge one before the bigger battle in 2023. If the membership votes this one in on the first try it will send a clear message on the mindset of the majority that the company will to it's best advantage with the next one, in which they probably have plans for already. This contract is a test to just see how much guff we will take before we will say "enough" already...Look at the profit margins and the projected increases on internet sales, the skies the limit...Bottom line with this contract as it is now is they won big time and there is nothing that the current Union Leadership is going to do about it. With the consideration of the last International election results it would be fair to say that from day one of the negotiating they looked across the table and had no respect for those who were looking the other way, they seen then before and knew who they were dealing with. Leadership that had 70 percent of it's UPS membership that bother to turn in a ballot voting for the other guy.
Clearly not a strong mandate of support from the rank and file...Really maybe they did the best they could considering...