UPS Uses Political Clout to Press for Cuts in Pension Benefits

[papau]

Is it fair for workers to lose pensions that they've earned because multi-employer union pension plans have not been fully funded (non-multi-employer benefits get cut back if poorly funded via the the process of the PBGC only guaranteeing a max level of benefits for bankrupt or destressed companies)? Why not getting more funding via better tax relief or cutting future benefits? Meanwhile, the United Food and Commercial Workers Union and Unite Here back the pension cuts, as do some Democrats like Representative Rob Andrews of New Jersey.


http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=aZ4baobjLWaQ

UPS Uses Political Clout to Press for Cuts in Pension Benefits

March 20 (Bloomberg) -- For 15 years, United Parcel Service Inc. has spent more money on U.S. elections than any other company. Now UPS, which has gotten its way on everything from federal highway programs to expanded routes to China, is seeking a new return on its investment.

The world's largest package-delivery service wants Congress to allow employers to cut pension benefits already promised to some workers in plans funded by multiple companies. Atlanta-based UPS says the plans can no longer afford to pay full benefits because so many companies that used to pay into the pool have gone out of business. As the number of contributors shrinks, remaining companies are obligated to fund the retirement plans. <snip>


The House of Representatives passed broad pension legislation in December that would require companies to pay more into multiemployer funds. It included a UPS-backed provision that would allow the plans' trustees -- which include company and union representatives -- to cut benefits by an unspecified amount for workers retiring early if the plans are less than 60 percent funded. The Senate has not approved such a provision.

``This is all part and parcel of companies backing off their pension requirements,'' says Senator Tom Harkin, an Iowa Democrat. ``They want to let pensions crash.'' <snip>