United Parcel Service Inc., Atlanta, is concerned about the viability of the pension promises to UPS employees who belong to the $20.7 billion Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill., said Norman Black, UPS spokesman, commenting on contract negotiations between the company and the International Brotherhood of Teamsters, Washington. Mr. Black would not provide details.
The Teamsters union is demanding in contract negotiations that UPS increase its contributions to all members pension, health and welfare plans to a record level, despite a company proposal to withdraw from the Central States fund, James P. Hoffa, Teamsters general president and co-chairman of the Teamsters National United Parcel Service Negotiating Committee, said in a statement. The Teamsters didnt give an amount of the increase. UPS is proposing to create a new joint union/company-administered pension fund for those workers formerly covered by Central States, the statement said. In return, the company will pay billions of dollars to cover its withdrawal liability.
Mr. Black declined to confirm that UPS seeks to withdraw from the Central States plan and set up a new plan for those employees. Galen Munroe, Teamsters press secretary, said the Teamsters would not comment beyond the statement. Mark Angerame, Central States CFO, was not available for comment by press time.