United Parcel Service of America Inc., Atlanta, and the International Brotherhood of Teamsters, Washington, would create a joint UPS-Teamster pension plan to cover full-time UPS employees who currently obtain their pension benefits from the $20.7 billion Teamsters Central States, Southeast & Southwest Areas Pension Fund, based in Rosemont, Ill., according to a statement from the IBT.
The current proposal would create a plan jointly administered by UPS and the International Brotherhood of Teamsters with an equal number of Teamster-appointed and company trustees, the statement said.
Van Skillman, president and co-founder of the Association of Parcel Workers of America, a new union that is undertaking a campaign to replace the Teamsters as the UPS labor representative, said he understands the UPS proposal would cover all 21 of the multiemployer Teamster jointly trusteed plans covering UPS employees, including the $30.2 billion Western Conference of Teamsters Pension Trust Fund, Seattle, and $3.4 billion New England Teamsters and Trucking Industry Pension Fund, Burlington, Mass.,
UPS would pay $4 billion in withdrawal liability to the Teamsters fund, Mr. Skillman said.
UPS proposed in 1997 contract negotiations that workers could withdraw from Teamster plans and UPS would create a new pension plan for its Teamster employees, but the Teamsters opposed the idea and UPS didnt pursue it, Norman Black, UPS spokesman, told Pensions & Investments last February.
Mr. Black said UPS officials wouldnt comment about the negotiations. Mark Angerame, CFO of the Central States fund, didnt return a call for comment. Galen Munroe, Teamsters press secretary, said the IBT would not comment beyond its statement.