UPS, Teamsters close to withdrawal deal

[Omaha Steve]

http://www.pionline.com/apps/pbcs.dll/article?AID=/20070807/DAILY/70807018

UPS, Teamsters close to withdrawal deal

Posted: August 7, 2007, 4:20 PM EST

United Parcel Service of America Inc., Atlanta, and Teamsters Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill., reached an agreement on the company’s potential withdrawal from the $20.7 billion fund, according to a letter the International Brotherhood of Teamsters sent to local union offices.

Norman Black, UPS spokesman, and Central States officials Mark F. Angerame, CFO, and William J. Nellis, attorney couldn’t be reached for confirmation.

“The specific terms of the agreement are being finalized by the company and fund,” according to a letter by James P. Hoffa, Teamster president and chairman of the Teamsters National United Parcel Service Negotiating Committee, and Ken Hall, co-chairman of the committee.

Any agreement between UPS and Central States “cannot be implemented unless it is accepted by the (Teamsters) negotiating committee and ratified by the members,” the letter said. “In short, the existence of the agreement between Central States and UPS does not mean that UPS is free to withdraw from Central States and establish a new, jointly administered Teamster pension plan for its employees.”

The Teamsters committee still awaits official notification of the agreement, according to the letter.

UPS is the biggest contributor to the Central States fund, and its employees account for the largest number of Teamsters members.

UPS contributes to 20 other Teamsters jointly trusteed plans covering UPS employees.