Latest on contract negotiations random notes; I listened in on the conference call from Ken Hall updating the stewards from around the country as to what was going on with our contract negotiations. This call took place on March 23rd, 2013 at 13:00hrs eastern.
Some of the following is from that call and some is from the union meeting at local 710 on Sunday 24th, 2013.
Ken Hall stated that he expected the company to low ball us in the beginning but the company far exceeded his expectations.
The company wants us to pay $30.00 single, $60.00 married and $90.00 family per week!!! Or $4,680.00 a year, we currently pay $50 single, $100.00 married and $150.00 family per month, or $1800.00 per year. From what I am understanding this increase is what the non-union UPS employees are paying.
That would be an increase of $2880.00 per year per family plan. Package employees currently pay $0.00.
They want to reduce our multiplier for our pension dramatically, whereby if we were expecting $3000.00 per month for a figure we would now get 2175.00 per month.
They also stated that they do not want to give us raises for the next three years opting instead to give us a bonus for full time employees of $500.00 per year and $250.00 per year for part timers.
This of course would not even begin to offset the cost of increased health insurance.
The company has hit the panic button because under the Obama health care plan health cost are now listed against a company’s bottom line as a liability. So let’s say UPS is a ten Billion dollar company, if under the new health care plan it has now two billion dollars in liability, the company ON PAPER is only worth eight billion dollars. Ups is looking at health care cost jumping up to as high as possibly four billion dollars in 2014 when the Obama health care plan actually kicks in full gear; which would reduce their value on paper to six billion dollars and potentially scare investors away.
Since all companies will have to report this way, investors will adjust; the union sees this as a scare tactic in trying to buffalo its employees into paying the higher premiums.
There is a major argument going on daily as to whether the Obama plan will increase or decrease a major company’s bottom line; UPS and other large companies seem to think it will adversely affect their bottom lines and they are preparing for that eventuality. We are up against the unknown.
UPS is looking at its company value being reduced on paper over this new way of reporting health care cost. So they are trying to shift the majority of the cost to the worker.
Subcontracting is a major issue. The Union has taken the stance that there will be no subcontracting of work until all drivers are working five days a week on a consistent basis. It was bought to light that some terminals out east have subcontractors running lanes of only 113miles each way. Subcontracting has gotten way out of line. What bothers me is it was not made clear by Ken Hall if that meant that our road drivers would actually be doing road work or if dock,city would satisfy his criterion. The Stewards are looking into this for clarification.
There was some discussion on switching one hundred and forty thousand union employees over to the union health care plan. I personally believe this is only a tactic as the undertaking of such a transition would be incredible.
We will not talk about strike as that would chase our shippers away. It was stated by Ken Hall that at a time when UPS is showing record revenue and profits, they choose at this time to come to the negotiating table as if they were loosing money.
In the past FED EX has gone to our shippers and used this to take our customers undermining our ability to negotiate. Please diffuse all talk of strike. At this point in time it serves neither sides interest, but both sides know that as of July31st, 2013 the no strike clause ends. No one should panic or hit the; “I’m depressed button”. These are negotiations; they are tough they are mean and we have time. Also keep in mind that this is not UPS Freight negotiating; but UPS Total, Freight, Package Logistics, everything. We will all be under the same umbrella, different pay scales but the same language on many issues. Package has expressed very clearly to us that they will support us in out endeavors because they will not allow UPS to leverage Freight against Package.
Ken Hall has stated that the union will not retreat on health care, raises, pension reform, or subcontracting; there are more talks scheduled in April 2013, two three day sessions.
UPS is also asking for a seven year contract. A quarter raise in the fifth year after no raises the first three years and only a very modest raise the fourth year.
The Union has made proposals to increase the starting wages of all employees hired. Also Proposals have been made for clearer language and to make it easier for part time employees to become full time.
Issues on work place harassment and electronic harassment have been discussed; Proposals have been made here also.
Ladies and Gentlemen, this is still only the beginning rounds. I was told that UPS is going to start a campaign to encourage us to tell the Union to give into the health care demands.
Please do not buy into this campaign. Remember UPS has had record profit and revenue.
Other notes; the IAM Machinists union for YRC which has about 30 to 31 mechanics shops nation wide may be going on strike March 31st, 2013. by the by, this is the same union that represents out mechanics. We are waiting from word from the IBT as to whether they will honor their strike or not since they have not supported us or honored our strikes in the past.
Jewel Foods contract is ending March 31st, 2013, they could possibly be on strike unless they get an extension; represented by local 710.
Pepsi Cola represented by local 710 might also be going on strike by March 31st, 2013 unless and extension is agreed upon.
ABF contract is at a stalemate. Pat Flynn is flying out tomorrow to take part in the ABF negotiations.