Sean O'Brien's post 3 hrs ago. On Thursday the Central States Pension Fund held the latest in a series of meetings regarding the coming pension crisis. Local union leaders from across the country listened as officials from Central States laid out the disaster facing the plan and the Teamsters union. The presentation was clear, cold and cruel: Central States is hemorrhaging money and if nothing is done it will be in default by 2026. And if Central States fails, employers, local unions and other pension plans around the nation are going to be dragged down with it.
Once the straight talk was done, General President Jim Hoffa stood up. Hoffa thumped his chest about how he would never allow cuts to save the pension plan. It was his best performance in ages. He almost sounded like a union leader, but as the words were coming out Hoffa’s mouth his PR machine in DC was preparing to sell the contract that guts ABF Teamster pensions.
Reports are that the agreement between the International and ABF would allow the company to freeze its pension contributions. It’s probably one of the reasons why Hoffa has put an information freeze on the proposed contract.
So what happens if ABF is allowed to freeze its contributions to the New England Plan? If the company doesn’t adhere to the mandated increases, their inaction will push ABF members into the “default schedule” and result in future benefit accruals being reduced by 60 percent. Additionally, all of the early retirement options will be eliminated and disability pensions for those under 64 will be gone.
Folks, this is a pension cut. Hoffa’s contract is a disaster for New England ABF Teamsters. What’s even crazier is that at no point was the New England Plan contacted.
We all know Hoffa doesn’t really negotiate contracts. He waits until the negotiations are finished, shows up with his photographer and inks the paper. It’s par for the course because our 78-year old leader barely bothers to show up for work these days. Still, Hoffa is responsible for the contract. He’s the boss. He wears the jacket. So while he’s touring the country thumping his chest about never cutting pensions, he’s destroying New England ABF Teamster retirements.