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ABF | ABF CEO Calls for Quitting Teamster Pension Plans

Kennesaw Kid

Kennesaw Kid

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ABF CEO Calls for Quitting Teamster Pension Plans

May 11, 2007: “We believe there is an opportunity in this negotiating cycle to withdraw from
some or all of these [Teamster pension plans] and provide benefits directly to our employees,
and we’re prepared to negotiate that with the Teamsters in the coming negotiations.”

“We view the multiemployer [Teamster pension] withdrawal opportunity to be the most significant
thing facing us.”

-- Robert Davidson, CEO of ABF, Interviewed on May 8, 2007 by transportation stock analysts


http://cc.talkpoint.com/BEAR002/050807a_sc/pdf/arkansas.pdf
 
Kennesaw Kid said:
ABF CEO Calls for Quitting Teamster Pension Plans

May 11, 2007: “We believe there is an opportunity in this negotiating cycle to withdraw from
some or all of these [Teamster pension plans] and provide benefits directly to our employees,
and we’re prepared to negotiate that with the Teamsters in the coming negotiations.”

“We view the multiemployer [Teamster pension] withdrawal opportunity to be the most significant
thing facing us.”

-- Robert Davidson, CEO of ABF, Interviewed on May 8, 2007 by transportation stock analysts


http://cc.talkpoint.com/BEAR002/050807a_sc/pdf/arkansas.pdf
Click to expand...

I may be way off base but maybe there is a little truth in the rumor that UPS is looking at ABF. Because I believe this is the sticking point with UPS and UPSF.

I guess time will tell and I am hoping the best for all of us.:smilie_132:
 
Kennesaw Kid said:
ABF CEO Calls for Quitting Teamster Pension Plans

May 11, 2007: “We believe there is an opportunity in this negotiating cycle to withdraw from
some or all of these [Teamster pension plans] and provide benefits directly to our employees,
and we’re prepared to negotiate that with the Teamsters in the coming negotiations.”

“We view the multiemployer [Teamster pension] withdrawal opportunity to be the most significant
thing facing us.”

-- Robert Davidson, CEO of ABF, Interviewed on May 8, 2007 by transportation stock a
http://cc.talkpoint.com/BEAR002/050807a_sc/pdf/arkansas.pdf
Click to expand...

UPS wants to pull out of Central States Pension Fund, check International Brotherhood of Teamsters UPS update
 
I recall hearing this somewhere, that most employer backed pension plans are invested mainly in their own company. Call me crazy, but if thats true then if the company goes spinning down severly due to whatever reasons, not only do you stand to lose your job, but you stand to lose your retirement? While their is always worries spreasing about our pension, would rather have the company and the union having a say about the fund.
 
Don't buy their garbage

If you let them take control, they'll make a sweet selling point offer. After the company has control a few years down the road, they'll switch you to a cash balance plan which halves your pension. The difference becomes profit for them. This also allows them to underfund your pension like all other companies do. When the company hits hard times and goes under, suddenly their largest liability is their former workers pensions. You get to go hat in hand to the Pension Guarantee Fund and beg for 10 cents on the dollar of your halved pension. Can anyone say 5%????
 
I've got 20.2 years Teamsters credit out of 14 union companies.
12 of these companies are out of business.
But my credit is still good as my pension was an investment from the union companies as part of my benefits package.
So even though most of the companies I worked for are long gone I will still get the payments for the years I've got in the plan.

Now heres the only kicker.
The Teamsters pension has always operated on a pyramid scheme.
Workers working for union companies that are paying their benefits,with the money that feeding the fund.

Retired people are living longer,and are collecting over a longer time period,so unless there are more contributions,all of these pyramid funded funds will dry up in short order,with a short fall of money invested.

When companies agreed to take care of their retired workers they could of never dreamed of paying so much into this benefit,for workers that may retire at 55,then live to 90,or older,collecting more money then the money they earned for the years they put into their companies.

YUP Skeeter time is going to tell on how long these funds will hold up?
 
chowdahhead129 said:
i thought i understood the UPS idea is to have joint ups/union trustees ? would this help keep the company honest?
Click to expand...

That means the company has 50% of the vote in their pocket and only needs one sell out. They can then decide to convert to cash balance which can bring your pension to a small fraction of what it is now. How many times have you heard the complaint of one or two teamster officials playing the company way to get on their good side? Especially now when teamster members are dealing with turncoats in their ranks on a daily basis this is a very foolish thing to allow.
 
Apostolic said:
I've got 20.2 years Teamsters credit out of 14 union companies.
12 of these companies are out of business.
But my credit is still good as my pension was an investment from the union companies as part of my benefits package.
So even though most of the companies I worked for are long gone I will still get the payments for the years I've got in the plan.

Now heres the only kicker.
The Teamsters pension has always operated on a pyramid scheme.
Workers working for union companies that are paying their benefits,with the money that feeding the fund.

Retired people are living longer,and are collecting over a longer time period,so unless there are more contributions,all of these pyramid funded funds will dry up in short order,with a short fall of money invested.

When companies agreed to take care of their retired workers they could of never dreamed of paying so much into this benefit,for workers that may retire at 55,then live to 90,or older,collecting more money then the money they earned for the years they put into their companies.

YUP Skeeter time is going to tell on how long these funds will hold up?
Click to expand...

Well, To tell you the truth. I think the funds will hold up because they will keep cutting the benefits. If ABF and UPS pulls out then they would have no choice.

If they don't stick together then so much for the brotherhood. Every man will be out for his self. Even you AP your benefits will be cut more and more.

It would be unfair to desert then old timers that pay their dues if you will.

I don't know the answer but I surely don't want to see anyone get hurt.

I guess I want what's best for me. But I am willing to listen if it means helping other families.
 
Skeeter said:
Well, To tell you the truth. I think the funds will hold up because they will keep cutting the benefits. If ABF and UPS pulls out then they would have no choice.
Click to expand...
I agree with you, the funds will hold up. The way I understand it is that if they were to cut benefits, then it would only be from that time forward. All pension credits earned up until then would remain the same. The pension fund would have to go bankrupt before we would lose part of our earned pensions. And I don't think that the union, the companies or the Federal Government will let that happen.

Apostolic's 20 years credit will be paid to him at the rates he earned them. Those funds have been sitting there earning interest since the 14 union companies made those payments years ago.

Apostolic said:
Now heres the only kicker.
The Teamsters pension has always operated on a pyramid scheme.
Workers working for union companies that are paying their benefits,with the money that feeding the fund.
Click to expand...

I don't agree with that, there is plenty of money in the funds to cover current retirees at the rates they earned their credits.

If UPS & ABF were to negotiate out of the multi employer pension funds then their withdrawal liabilities will be enough to cover all of our earned credits up to that point in time.

The only thing that we can do now is to hope that the IBT & the companies can come up with a plan that will protect our future pension benefits.
 
Pensions

Hey Chowdahhead129,
Arbitration panels have equal amounts of company and union representatives on them and have you seen what happens with decisions made on them. NO THANKS I DONT NEED THE COMPANIES CONTROLING MY PENSION MONEY NOW AFTER 35 YEARS IN THE TEAMSTERS. Dont trust corporations with your retirement funds. Remember ENRON!!!!!!!!
 
ROADY said:
Hey Chowdahhead129,
Arbitration panels have equal amounts of company and union representatives on them and have you seen what happens with decisions made on them. NO THANKS I DONT NEED THE COMPANIES CONTROLING MY PENSION MONEY NOW AFTER 35 YEARS IN THE TEAMSTERS. Dont trust corporations with your retirement funds. Remember ENRON!!!!!!!!
Click to expand...

To me the whole thing sucks because with all the success these non-unions have had in the freight business in the last few years puts pressure on the co's to cut the freight rates to retain there own business and to offer higher discounts then ever before then pay the workers $10 or $15 higher per hour. Its been put right in black and white that UPS is shrinking there workforce and so arent some other major union carriers while other outfits are getting bigger daily. How the heck are we all going to win here ? Makes a young guy with not much time in really wonder about the job security of these higher paying trucking jobs. I mean if your a short timer you just want to get more more more and drag your feet for all the o.t. you can get even if its a little crooked at times but a guy who needs 20 more years is out there busting trying to save the companys as&. In other words we make a really nice check with great bennies but if people at these scumbag joints are willing to drive a truck for peanuts then we're all headed down the tubes. PLAIN AND SIMPLE.
 
serta said:
I recall hearing this somewhere, that most employer backed pension plans are invested mainly in their own company. Call me crazy, but if thats true then if the company goes spinning down severly due to whatever reasons, not only do you stand to lose your job, but you stand to lose your retirement? While their is always worries spreasing about our pension, would rather have the company and the union having a say about the fund.
Click to expand...

Your thinking of Enron, Steel companies and airlines. Not the same


Taft hartley multi-employer pension funds operate differantly.
 
lazylarry said:
To me the whole thing sucks because with all the success these non-unions have had in the freight business in the last few years puts pressure on the co's to cut the freight rates to retain there own business and to offer higher discounts then ever before then pay the workers $10 or $15 higher per hour. Its been put right in black and white that UPS is shrinking there workforce and so arent some other major union carriers while other outfits are getting bigger daily. How the heck are we all going to win here ? Makes a young guy with not much time in really wonder about the job security of these higher paying trucking jobs. I mean if your a short timer you just want to get more more more and drag your feet for all the o.t. you can get even if its a little crooked at times but a guy who needs 20 more years is out there busting trying to save the companys as&. In other words we make a really nice check with great bennies but if people at these scumbag joints are willing to drive a truck for peanuts then we're all headed down the tubes. PLAIN AND SIMPLE.
Click to expand...

hey Larry, im one of those short-timers that your talking about. i got close to 6 yrs. with New Penn. your right when it comes to me wondering about job security in this scum-bag industry. i got 2 little ones at home so you know where im coming from. as far as the OT issue, there are things i do out there on the road that saves the co. $$$. trust me, i got a very heavy route that im on everyday and I give 'em a fair days work with decent OT. i don't milk it like alot of my co-workers do but im am guilty of minor things. i don't steal 2-3 hrs. a day. you got guys being followed all the time because of this issue every week. believe me, the last thing i want is a spy following me around. granted, im not up to my neck in bills so i don't need that much OT but there are so many of us that don't live within our means and therefore they're gonna gobble up whatever OT they can get away with.
 
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