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ABF | Pension
- Thread starter Muler
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truxforever
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Hey I was just on the info round table, there was a very interesting question ask by a driver. Here is a couple of the question and the reply by ABF.
Just wondering if ABF will want to take over pensions with their current request to withdraw from the NMFA? Can you please inform the employees a little more? There are quite a few employees who love ABF and would like to feel more secure about this upcoming transition, especially those that have spent decades of their lives here. Thanks!
To be clear, we have not requested to withdraw from the NMFA. We have elected to withdraw from TMI and bargain directly with the union. The withdrawal liability likely to be assessed in the event we tried to withdraw from the various Multi-Employer Pension Plans is prohibitively expensive. That window of opportunity has passed and we are stuck in these plans. Most of these plans are underfunded, some critically so. The company will continue to pursue multiple channels to find solutions to this critical problem that threatens the pensions of our employees.
Just wondering if ABF will want to take over pensions with their current request to withdraw from the NMFA? Can you please inform the employees a little more? There are quite a few employees who love ABF and would like to feel more secure about this upcoming transition, especially those that have spent decades of their lives here. Thanks!
To be clear, we have not requested to withdraw from the NMFA. We have elected to withdraw from TMI and bargain directly with the union. The withdrawal liability likely to be assessed in the event we tried to withdraw from the various Multi-Employer Pension Plans is prohibitively expensive. That window of opportunity has passed and we are stuck in these plans. Most of these plans are underfunded, some critically so. The company will continue to pursue multiple channels to find solutions to this critical problem that threatens the pensions of our employees.
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Docker
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Now that is not a very good reply from the company. If I were to have to read between the lines it would appear that the company and the union have something up their sleeves to cost us money and not them. BEWARE BROTHERS! YOUR BROTHER ALWAYS!
Joe the plumber
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Of course it's going to cost you money and not them. When a company's ATM is low on funds (any company) they take from the workers to reload the ATM. Conversely when the company ATM is loaded with cash in good times the workers take money from the company ATM and put in their own ATM. The company is more concerned about contributing to the pension then it is concerned how well funded it is. They would really have a problem if the trustees had them fund it better.
That is exactly the reason we should be thinking about a change with the pension, ABF teamsters should be thinking about what CSPF and the Teamsters have done to YRC teamsters. If our leaders were looking out for the members, instead of themself maybe CSPF would not be in condition it is in. It is time We ABF teamsters start looking out for us.
Do you ever go back and reread your post. If not try it you might be shocked.
There are so many ways to go in this upcoming contract. Say we wanted a forty cent an hour raise. We could defer the payment say until December and receive our yearly payment for time worked then. That would free up cash for ABF and help families at Christmas time. That is just one simple way to help ourselves and ABF. There are many more things we can do that would benefit all the parties involved. YOUR THINKING BROTHER ALWAYS!
truxforever
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You know there is an article out about the funds and UPS it is pretty good reading. I will see if I can post.
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truxforever
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News Breaks
September 17, 2012
11:39 EDT UPS UPS enters agreement with Teamsters to restructure pension
On September 16, United Parcel Service entered into a binding agreement with the New England Teamsters and Trucking Industry Pension Fund to restructure pension liabilities to the Fund,
Stock Market & Financial Investment News: Educated Investors Get Live Stock Market News Feeds & Alerts at The Fly On the Wall
September 17, 2012
11:39 EDT UPS UPS enters agreement with Teamsters to restructure pension
On September 16, United Parcel Service entered into a binding agreement with the New England Teamsters and Trucking Industry Pension Fund to restructure pension liabilities to the Fund,
Stock Market & Financial Investment News: Educated Investors Get Live Stock Market News Feeds & Alerts at The Fly On the Wall
truxforever
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Here is a another one about a New Model it has some good reading a lot of info. If you are in the funds you should read.A new pension model - Pensions & Investments
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truxforever
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Do you think the pension is going to be a big factor in this contract.
I think it will be a major concern in our talks. It is a $110,000,000.00 a year cost to ABF. But it is also the futures of thousands of ABF Teamsters. YOUR LOOKING FOR ANSWERS BROTHER ALWAYS!
truxforever
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Muler we have to come up with something we can all live with. I know we are going to have to give up something to help ABF if we want them to compete. The two articles above are full of info.
Not give something up. We have to come to a meeting of the minds. There are many ways to off set cost and that does not always mean that we have to go backwards. You see if we allowed ABF to pay out like UPS did it would cost them around a BILLION DOLLARS or pretty close to it. ABF is looking for a way out that we the ABF Teamsters would have to shoulder the burden and that is not the right thing for us. We will have to hold ABF and the IBT to what we want and that may not always be what they want. Just like the cash flow idea that really helps ABF more than many know. Just a $10.00 a day per employee savings equals roughly $70,000.00 a day for ABF.
We have many options and one's that do not destroy our families futures. They must all be debated and discussed with great attention. We do not have to vote yes on any contract we feel does not benefit all parties. We can send both sides back to the table as many times as we wish. So let's not get excited and pass something we will all regret. YOUR BROTHER ALWAYS!
I agree lets not get in a hurry, if we think we have to give up something, then it most likely will happen. I agree with Muler, there is other ways to do it without giving something up. It is still early, and I don't want to give up yet. I really don't think we will if both sides are willing to think outside of the box. We all can win if all sides are open.
nothumbleenough
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What is your source on the 110 Million contribution from ABF?
I assume you were talking to me nothumbleenough. If so here is the information you REQUESTED! YOUR WELCOME BROTHER ALWAYS!
Approximately 75% of ABF’s workforce is represented by the International Brotherhood of Teamsters (IBT). ABF is a party to the National Master Freight Agreement (NMFA) with the IBT, and the current five-year agreement expires March 31, 2013. In order to comply with the requirements of the PPA applicable to Red Zone and Yellow Zone plans, the current version of the NMFA has imposed a 7% annual, compound multiemployer pension plan contribution increase on ABF since it went into effect in 2008. Over the course of the five-year term of the current NMFA, that means a total compounded PPA-required contribution increase of more than 40% relative to the rate in effect before the NMFA became effective in 2008. ABF has contributed the following amounts to multiemployer pension plans in recent years: $104 million in 2009; $120 million in 2010; and $133 million in 2011. Those contributions alone represent almost 8% of ABF’s total revenues from those years.
http://edworkforce.house.gov/uploadedfiles/06.20.12_mcreyolds.pdf
nothumbleenough
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Thank You Brother Muler!