By Sahid Fawaz

Does it pay to be union?

Yes. Often many times over.

And employees at UPS are learning that now with the company's new pension announcement.

MSN.com reports:

"United Parcel Service Inc. will freeze a pension plan for about 70,000 nonunion U.S. employees because of escalating costs and volatility in determining future payments, replacing it with a different retirement benefit.

UPS joins companies including DuPont Co. and Lockheed Martin Corp. in freezing pensions, which means that some or all participants may stop accumulating benefits. UPS’s retirement obligations are on top of a $1 billion jump in capital spending being planned for this year to handle a surge in e-commerce shipments.

'It’s not a red flag,' said Kevin Sterling, a Seaport Global Holdings analyst. 'Combine how much money they are spending on automation and on planes, along with discount rates being low maybe forever, and they said "we have to cap this or we’ll continue to see funding shortfalls."'

UPS’s pension plans in the U.S. had a $9.85 billion shortfall at the end of last year, meaning they were about 76 percent funded, according to regulatory filings.

The shift won’t occur until Jan. 1, 2023, giving affected workers more than five years to prepare, Atlanta-based UPS said Tuesday. Most of the employees, which account for about 16 percent of the workforce, are in administrative or management positions."

For the rest of the story, check out the MSN.com piece here.

Comments   

0 #15 Teamsters Suck 2017-07-20 20:40
Spoken like a true Teamster Organize. :-x

Quoting Organizer:
Quoting chris:
not an employee, but according to law these employees are exempt "Most of the employees, which account for about 16 percent of the workforce, are in administrative or management positions.", The management and admin are likely getting an already exclusive benefits package better than the unionized workers, in addition the CEO down, understand that they will have to remain competitive with similar industries to ensure the employees don't jump ship. The benefits will be back


Have you learned nothing? The benefits never come back until workers organize for power.
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0 #14 Ron 2017-07-14 08:02
#9 Mike you're a fucking retard.
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0 #13 John E Bartley 2017-07-14 06:30
Link to MSN source missing.
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+6 #12 Bob 2017-07-10 14:30
Quoting Michael Tiffany:
Wake up America you need unions to protect you against your employer which is sad, but they will not think twice about screwing you over.


Better words have never been spoken!!!
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+3 #11 Bob 2017-07-10 14:28
Quoting Joe Hadley:
As Chief Executive Officer at UNITED PARCEL SERVICE INC, David P. Abney made $11,672,420 in total compensation. Of this total $1,082,421 was received as a salary, $387,741 was received as a bonus, $991,275 was received in stock options, $9,172,450 was awarded as stock and $38,533 came from other types of compensation. This information is according to proxy statements filed for the 2016 fiscal year.


No one is worth this kind of money!!!!
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0 #10 Joe Hadley 2017-07-08 21:25
As Chief Executive Officer at UNITED PARCEL SERVICE INC, David P. Abney made $11,672,420 in total compensation. Of this total $1,082,421 was received as a salary, $387,741 was received as a bonus, $991,275 was received in stock options, $9,172,450 was awarded as stock and $38,533 came from other types of compensation. This information is according to proxy statements filed for the 2016 fiscal year.
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+6 #9 Mike 2017-07-08 10:29
Quoting George Meyer:
Maybe now the people will actually earn their pay and ups might not go broke

Your an idiot. They do earn their pay and ups is no where close to broke. You've been brainwashed into thinking all the money and power should be in the hands of industry leaders and the citizens are deserve as little as possible. Consider what UPS sells it's pure labor there is no product.
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+4 #8 Hambone 2017-07-07 07:13
What is happening to the pensions of the union employees?
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-28 #7 George Meyer 2017-07-07 07:01
Maybe now the people will actually earn their pay and ups might not go broke
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+5 #6 Organizer 2017-07-07 06:51
Quoting chris:
not an employee, but according to law these employees are exempt "Most of the employees, which account for about 16 percent of the workforce, are in administrative or management positions.", The management and admin are likely getting an already exclusive benefits package better than the unionized workers, in addition the CEO down, understand that they will have to remain competitive with similar industries to ensure the employees don't jump ship. The benefits will be back


Have you learned nothing? The benefits never come back until workers organize for power.
Quote

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