Dissident labor group courts UPS workers

A UPS truck driver from Charlotte, N.C., is trying to change the labor representation for 238,000 United Parcel Service Workers.

For more than 40 years, the Teamsters union has represented UPS workers. But discontent with the Teamsters’ pension plan management has led to a rival group: The Association of Parcel Workers of America.

Van Skillman, the UPS driver from North Carolina, co-founded the APWA in 2004. He’s now president of the dissident labor group.

“It all started over the pension issue,” Skillman said.

Hourly UPS workers draw their retirement from multi-employer pension funds managed by the Teamsters. Three years ago, after heavy losses in the stock market, Teamsters pension plans in some parts of the country changed the eligibility requirements for retiring workers to qualify for health insurance and pension payments. In some regions, retirees must be at least age 57 to get their full health insurance benefits.

The changes weren’t unique to the Teamsters, said Bill Moore, a Teamsters International representative in Topeka, Kan. Other funds also struggled with market losses and demands from a growing number of retirees, he said.

“We hope to be totally funded again at some point and increase the benefits,” Moore said.

The Teamsters represent about 5,000 UPS workers in Washington and Idaho. The changes haven’t affected the Western Conference of Teamsters Pension Trust Fund, which is 100 percent funded. However, “it’s coming your way,” Skillman predicted.

The new union would represent only UPS workers. It could be more accountable on pension issues, Skillman said.

At stake is the UPS workers’ share of more than $50 billion in assets in a variety of Teamsters’ retirement funds. Retirees from companies whose workers are represented by the Teamsters draw their pensions from the funds. UPS contributes more than $1 billion annually, and — in essence — UPS is subsidizing the pensions of retirees from other firms that have gone out of business, Skillman said.

While Moore said there’s greater security in belonging to a multi-employer pension fund, Skillman thinks UPS workers would do better with their own pension fund.

About three weeks ago, the new union kicked off its effort to represent UPS workers. The group needs 30 percent of UPS employees represented by the Teamsters to sign cards, asking the National Labor Relations Board to hold an election on union representation. Skillman said APWA anticipates completing the signature effort this summer.

The Teamsters’ current contract with UPS expires in August 2008.