UPS Teamster Magazine, Fall 2004 - International Brotherhood of ...

PSTEAMSTERA MAGAZINE FOR UPS TEAMSTERS FALL 2004Safety NetLONG-TERM DISABILITYTAKES EFFECTPAGE 22Smart ChoicesFUNDING YOUR KIDS’ COLLEGEEDUCATIONPAGE 12TEAMSTERTEAMSTERNew JobsKicking InTEAMSTERS WIN FIRST BATCHOF FULL-TIME POSITIONSFROM 2002 CONTRACTPAGE 10

FROM THE GENERAL PRESIDENTDIRECTOR’S MESSAGEWelcome to YourUPS TeamstermagazineWe MustHold CompanyAccountableWelcome to UPSTeamster magazine.This magazineis for you, the men andwomen who help process,sort and deliver more than 13million documents and packagesevery day.For some time, we havewanted to expand our coverageof news for and aboutyou—the more than 200,000UPS Teamsters. We plan topublish the magazine severaltimes a year so that you andyour family members will bekept up-to-date about newsthat is important to you.In 2002, when you ratifiedthe agreement with UnitedParcel Service, it was a hugevictory—for you and yourfamilies, for organized laborand for all of America.THE FIGHT CONTINUESToday we face very tougheconomic times. While weset a new standard forAmerica’s workers by deliveringthe richest contract inUPS history, we must alwaysbe on the guard to makesure your wages and benefitsare protected.We hope this magazineinspires you to getinvolved—by learning aboutthe rights contained in yourTeamsters contract orattending Union meetings—so that we may build on thegains we have fought so hardfor in the past.In 2002, our fight wasdifficult. UPS had themoney, but we had the people.We could not have wonwithout the support ofrank-and-file members.Today, the battle for justicecontinues. We must bevigilant to make sure that youand your coworkers are treatedfairly on the job, and thatthe company provides youwith the dignity and respectthat you deserve.By staying informed, wewill remain strong.Together, we will win!Fraternally,There is no questionthat the 2002 UPScontract providesmore wages andbenefitsfor workers than any contractnegotiated in anyindustry by any union inthis country during thepast three years.We were able to negotiatethe largest settlement inUPS history because of thestrength of our more than200,000 members, togetherwith the hard work of ourstewards, local union leadersand an experienced negotiatingcommittee.However, we must insurethat our members receivethe full benefit of our negotiationsby holding the companyaccountable throughaggressive enforcement ofthe contract.During 2004, we havebeen very successful in arbitrationcases, winning morethan $63 million in backpay and benefits for ourmembers. But our work isnever done.Your International Unionwill continue to work withthe local unions to protectmembers’ interests. Butone thing I know for sureis that you—our stewardsand members—are ourmost important asset inenforcing the contract andhelping to organize thenonunion competition.We need your help.I echo General PresidentHoffa in hoping thatthis magazine helps youstay informed about theissues that matter mostto you.The success that weenjoy, and our ability tocontinue to be successful,depends on our unity,strength and knowledgenow and in the years ahead.Fraternally,FALL 2004 UPS TEAMSTER 1

NEWS FALL 04>> VICTORYTeamsters WinWage Settlementfor Inside WorkersCOMPANY TO RETROACTIVELY PAY EMPLOYEESThe union has settled along-standing disputeconcerning theappropriate wage rate for aclassification of full-timeinside employees.The dispute concernedfull-time inside employees,whose jobs were created primarilypursuant to Article 22,Section 3 and who were paidunder Article 41, Section 3—full-time inside wages.The settlement affectsemployees who were in thatwage progression scheduleas of August 1, 2002 butwhose wage rates were higherthan what the new scheduleprovided. Such employeesdid not receive a generalwage increase and were “redcircled” at their current rateuntil the progression exceededthat employee’s wage rate.For example, an employee>> JUSTICE‘UPS Basic’ Fight Heads to ArbitrationUNION FIGHTS COMPANY PLAN TO USE U.S. POSTAL SERVICEThe Teamsters Parcel andSmall Package Division isfighting UPS’s plan to shiftsome new package deliveriesto the U.S. Postal Service.The Teamsters had filed agrievance on behalf of theNational GrievanceCommittee. The case deadlockedand has been submittedto the AmericanArbitration Association.The UPS plan, called UPSBasic, is an attempt to winnew customers who want tosend one- to five-pound packages.The plan would takeadvantage of a Postal Serviceprogram called Parcel Selectthat offers discounts to peopleor companies that sort anddeliver items to the post officenearest the item’s final destination.A U.S. Postal Servicecarrier delivers the packagesthe rest of the way.“We will fight this planbecause it directly violates theNational Master Agreementregarding subcontracting,”said Ken Hall, TeamstersParcel and Small PackageDivision Director.‘UPS LITE’In a protest letter to UPS, Hallreferred to the program as“UPS Lite.”“This service will includethe use of subcontractors tobring loads to and from UPShubs and will include the segregationof packages carryinga certain rural and/or ‘super’rural zip code,” Hall said in4 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

his letter. “Such segregatedpackages will then bedropped off by the UPS driverat the appropriateUnited States Post Officefor final delivery by aUnited States PostalService employee.”“This is to formally notifyUnited Parcel Service thatthe Union strenuouslyobjects to the implementationof such a service as itis in direct violation of thesubcontracting prohibitionscontained in the collectivebargaining agreementas well as numerousadditional contractual provisions,”Hall wrote.who was at his/her seniorityplus one year step andwhose wage rate was $15 perhour or higher, did notreceive the August 1, 2002general wage increase.UPS has agreed toretroactively pay suchemployees their August 1,2002 general wage increase.Such employees would thenprogress to the top rate aftercompleting the two-yearprogression.This settlement does notapply to employees whosewage rates were less than thenew progression. Suchemployees were slotted intothe new progression schedule.In addition, there wereemployees in such jobs whohad completed the two-yearprogression by August 1,2002 and whose wage rateswere $17.50 or higher.Based upon a settlementreached two years ago, suchemployees were entitled tothe full general wageincrease on August 1, 2002and thereafter.The union anticipatesthat the retroactive checkswill be ready by the end ofAugust. The general wageincreases also come intoeffect on August 1, 2004 andthe union wishes to ensurethat such are properlyimplemented for all employeesprior to the calculationof the retroactive paymentsfor the affected employees.With the exception of afew supplemental pay disputes,this should concludethe remaining national wagedisputes concerning the2002-2008 contract.>> SOLIDARITYUp in the AirNEGOTIATIONS FOR UPS PILOTS ONGOINGUnited Parcel Service and the Independent Pilots Association(IPA), which represents the approximately 2,500 pilots who flyfor the company, are currently in the bargaining process and thetalks have moved to a third party.After 22 months of direct negotiations, the talks went underthe direction of the National Mediation Board (NMB) in August.More sessions are planned in late September.There is “no near-term solution in sight,” IPA Treasurer Capt.John Anderson told The Courier-Journal newspaper recently.UPS and the union have been in direct negotiations for a newpilot labor agreement since October 2002 and their current contractbecame amendable on December 31, 2003.“In the end, it will come down to a simple question: Is UPSwilling to recognize the valuable contribution of the IPA and sostep up to the plate and fairly schedule and compensate its pilotemployees? asked Tom Nicholson, President of the IPA.“We don’t yet know the answer to that question. We do thinkthe mediation process will help us accelerate to a point wherewe will know the answer in the coming months,” Nicholson said.INVOLVEMENT AND ASSISTANCEBoth UPS and the IPA congratulate the NMB for providing anunprecedented level of involvement and assistance to the partiesusing IBB. The parties have greatly benefited from theinvaluable guidance and experience of NMB staff facilitatorsLinda Puchala and John Livingood.The pilots’ labor agreement is covered by the Railway LaborAct (RLA) and does not expire until the negotiation processes ofthe RLA are exhausted. Although the IPA has tapped its bestefforts over the past 22 months, no agreement has yet beenreached in the contract areas of scheduling, compensation,pension, scope and benefits.Both in 1991 and in 1998, IPA and UPS reached agreement fora new pilot contract during mediation supervised by the NMB.The union is committed to continuing to bargain in good faithand continuing to work with the company and the NMB to reachagreement on the substantial issues that remain unresolved.FALL 2004 UPS TEAMSTER 5

NEWS FALL 04>> EXCELLENCETeamsters at UPS aTalented LotFORTUNE SURVEY RANKS WORKERS TOPS IN INDUSTRYIn a recent Fortune magazine survey,Teamsters and other employees atUPS were ranked the most talented inthe industry.“There’s no question that our UPSTeamsters are incredibly talented,” said KenHall, Director of the Teamsters Parcel andSmall Package Division and InternationalFighting Excessive OvertimeTEAMSTERS WIN GRIEVANCES TO LIMIT PRACTICEThe Teamsters Union has won numerousgrievances requiring UPS to immediatelyreduce the excessive amount ofovertime for many drivers.“During the 2002 contract negotiations,excessive overtime for package-car driverswas one of the major issues identifiedby members in our surveys,” saidKen Hall, Director of the TeamstersParcel and Small Package Division. “Theunion’s negotiating committee spentweeks negotiating with UPS on this subjectand we achieved new language in thecontract. Despite that effort, UPS wasslow to acknowledge its commitment tolimit the excessive overtime pursuant tothe new provisions of the contract.”Last October, dozens of membergrievances were docketed to theNational Grievance Committee.“As a result, the union was able toobtain solid decisions holding thecompany accountable on this issue,”Hall said.Hall said that in order to enforce thecontract language, members mustunderstand the “9.5 (referring to 9.5hours) language.” First, the 9.5 languageapplies to the amount of time worked,not planned or dispatch time.Second, the request for an eight-hourday also refers to time worked. Membersfrequently ask how they can insure thatthe company is cooperating to providethe eight-hour day. During the nationalnegotiations, the parties agreed to thefollowing procedure:■ The driver should examine his or herload at the beginning of the shift. If itappears the load is too heavy toaccommodate the eight-hour request,the driver should advise themanager/supervisor immediately.The supervisor should adjust the routeat that time.■ While on the route, if the driver determinesthat he or she will not be able tofinish within eight hours, the drivershould contact management who shallhave the responsibility to make the necessaryarrangement to insure the driveris off in the requested eight hours.Drivers should notify management assoon as practicable and in any event nolater than 1 p.m. or 2 p.m.6 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

Vice President. “It is theirhigh level of skill and dedicationthat gets the job doneon a daily basis. We’re proudof everything they’veaccomplished.”The survey polled 10,000senior executives, directorsand securities analysts. UPSwas rated the top companyin its category, joining companieslike Proctor &Gamble, IBM, Starbucks,General Electric and Johnson& Johnson at the top of theirrespective industries.When it comes to volunteerism,Teamsters and otherUPS workers are eligible forseveral company awards,including the Jim CaseyCommunity Service Award,given to the top employeevolunteer. It’s not always easyto pick just one worker forthat award: approximately30,000 UPSers volunteer eachyear through Neighbor toNeighbor, the company’s corporatevolunteer program,and many thousands morevolunteer in their local communitiesand churches.A recent USA Today articlehighlighted the extensivetraining the workers receive,and noted that UPS driversaverage less than one accidentevery million miles. Accordingto the same article, nearly4,000 drivers have been citedby the company for drivingmore than 25 years withoutbeing involved in an accident.“It’s that kind of dedicationto safety and to a jobwell done that is the hallmarkof a UPS Teamster,”Hall said. “Our workers taketheir responsibilities seriously,and it shows.”>> PROTECTIONSSafety and Health Department ProvidesAnswers for Part-TimersWEBSITE IS GOOD SOURCE OF INFORMATIONWhile part-timers at UPS don’t experiencethe long days and weeks of those who drivepackage cars or other full-time workers,they do face a variety of potential work-relatedinjuries due to the fast pace of the job.This fast pace is made more challengingwhen packages weigh up to 150 pounds.Members should become familiar with thecontract language that provides safeguardsfor handling heavier packages. Part timersoften do the initial intake of packages to providethe first pass at sorting them into specificdelivery routes and weights. Not all UPSfacilities are yet equipped with the variety oftable heights for sorting that can be found atthe newest hubs.“We have found that a very large percentageof the job injuries and illnesses experiencedby UPS part-time workers are causedby workers having to manually lift and lowerpackages, while working at a rapid pace, atworkstations that are not ergonomicallydesigned,” said LaMont Byrd, Director of theTeamsters Safety and Health Department.“Therefore, in addition to negotiating protectionsin the collective bargaining agreement,we also attempt to educate our members byproviding basic information on the union’swebsite about how to work safely andreduce the risk of experiencing musculoskeletal,and other injuries. We also providetraining at local unions for UPS stewards sothat they may better understand the types ofinjuries our workers experience on the joband how to work safely in their respectivework environment.”CONTRACT LANGUAGEThe current collective bargaining agreementwith UPS provides extensive measureson safety and health in the workplace.Having safety and health languagein the agreement strengthens theunion’s ability to compel the employer toabate safety and health hazards, reducejob-related injuries and effectively resolvesafety and health grievances against thecompany. For example, Article 18 of theagreement specifically addresses safety andhealth issues, including the role of a company/unionsafety and health committeeand a national grievance committee.The Teamsters website, under the Safetyand Health Department section, includesinformation about heat stress, musculoskeletaldisorders, back strain and carpaltunnel syndrome. This is an example of theinformation from the “Back Strain” page:“Back injuries are one of the most devastatingsafety and health problems. Lowerback injuries account for 25 percent of allworkplace injuries and 33 percent of workplacecompensation costs. Tasks that canlead to back injuries include the following:frequent lifting; carrying of heavy loads;twisting and bending while lifting and carryinga heavy load; and/or extended periods ofwork in one posture.”> To learn more about workplace injuries and howto prevent them, please see: www.teamster.org.FALL 2004 UPS TEAMSTER 7

NEWS FALL 04Kerry WillFight to ProtectTeamsterPensionsBUSH-SUPPORTED BILL EXCLUDEDMULTI-EMPLOYER PENSIONSCongress recentlypassed a so-calledpension relief billthat helped single-employerplans, but the nearly 100,000UPS Teamsters in multiemployerplans were left out.While most part-timeUPS workers are in company-onlyplans, most full-timeworkers are in the multiemployerplans.“Congress turned theirbacks on our full-time UPSmembers who need pensionrelief,” said JimHoffa, TeamstersGeneral President.“This is just anotherreason why it is imperativethat we all join together tofight for John Kerry in his runfor President.”“While it’s good thatmany of our part-time UPSmembers will benefit fromthe bill, it leaves out ourfull-time members,” addedKen Hall, the TeamstersParcel and Small PackageDivision Director. “We needto help our full-time membersso that their retirementis protected.”Kerry is working with alliesin Congress to pass legislationthat corrects the Bush-supportedbill ignoring multiemployerplans. If Congressfails to act, Kerry is committedto providing meaningful relieffor multi-employer planswhen he is elected President.> Join Kerry in his fight for legislationthat provides meaningful relieffor multi-employer pension plans.Log on to www.teamstersforkerry.organd click on the umbrella,and you can email or fax your representativesand tell them to standup for UPS Teamsters covered bymulti-employer plans.Organizing at DHLCAMPAIGN GETS UNDER WAYAs DHL aggressively competes against UPS, the TeamstersUnion is aggressively pursuing a campaign to organize DHLworkers and employees of companies that contract with DHLto deliver its packages.“I know many of you are concerned about DHL’s increasedvisibility and the fact that much of its workforce is nonunion.Our national strategic organizing campaign will workto ensure that DHL workers receive the pay and benefitsthey deserve,” said Ken Hall, Director of the TeamstersParcel and Small Package Division.DHL is investing $1.2 billion in the United States to bettercompete against UPS and other package-delivery companies.The Teamsters represent about 9,000 DHL employeeswho previously worked at Airborne, which DHL acquiredlast year for $1.05 billion. This number includes approximately800 pilots employed by ABX Air throughout theUnited States, represented by Local 1224 in Wilmington,Ohio, and approximately 8,000 drivers, dockworkers andclerical workers under the National Master FreightAgreement and white paper contracts.An organizing strategy session was held at theInternational Union’s headquarters in early August, and morestrategy meetings are planned. In the meantime, theInternational Union will work with Local Unions to bettercoordinate the organizing campaigns from coast-to-coast.The Teamsters have already won several campaigns, includingvictories in Los Angeles, Miami, New York City, San Diego,Virginia Beach, Virginia, and in Olympia, Washington.8 UPS TEAMSTER FALL 2004 WWW.TEAMSTER.ORG

Back in TimeUPS Workers on Michigan Island WorkLike the Original Teamstersthings you have to take into account onthe island that you don’t have to worryabout when you’re in a truck. Like whenit rains, you have to cover everythingwith a tarp because it’s in the back of thebuggy or a bicycle.”Mackinac (pronounced Mackinaw)Island only has a population of approximately500 permanentresidents. There arescores of summer residents,though, andthat’s when things pickup for the UPSTeamsters on the island.The island waspicked by NationalGeographic as one ofthe 10 finest islands inAmerica. More than 80percent of MackinacIsland is designated asa national park andthere is very littledevelopment there. In1872, the federal governmentdesignatedYellowstone asAmerica’s first nationalPHOTOGRAPHY BY SARAH CHAMBERSDuring the early yearsof the Teamsters Union,being a Teamster meantyou delivered goodsby a horse-drawn carriage.In at least one part of the country,there are Teamsters who carry onthat tradition.Mackinac Island, located betweenMichigan’s peninsulas, is an island whereno cars or motorized vehicles areallowed. This presents a unique challengefor the island’s UPS drivers, representedby Local 486 in Saginaw.The Local 486 members who workat UPS on the island use companyissuedbicycles, or horses that pull aflatbed dray, which they lease from alocal company.Rob Horn has been working for UPSfor eight years and he’s no stranger toMackinac Island—he grew up there.“Delivering on a bike isn’t as hard asit sounds because you’re on levelground,” he said. “What’s more of a challengeis that we have a small deliverywindow—only about five hours after wesort the packages.”HARD, BUT FUNGlenn Arnold has been working for UPSfor three years and, like Horn, he alsodelivers in areas where the deliverytrucks are not allowed.“Needless to say, there is a huge differencebetween delivering on MackinacIsland and other places,” he said. “It’s alot of hard work but it’s fun. There arepark. Only three years after that, portionsof Mackinac Island were givensimilar protections.“It’s a beautiful place and, in thesummer, there are always lots of peopleenjoying the scenery,” Arnold said. “Onan average day in the summer, I’ll havemy picture taken 25 times a day. Peoplejust get a kick out of seeing a UPS driverdoing their job this way.”FALL 2004 UPS TEAMSTER 9

New Jobs Onthe HorizonTeamsters WinFirst Batch of 10,000New Positions fromthe 2002 ContractSettlementArden Camp tried to qualifyfor a package-car drivingjob numerous times withno luck.That changed three yearsago when Camp, a member of Local 28in Taylors, South Carolina, got a“combo” job.“It’s a blessing,” Camp said. “I paidmy dues.”More UPSers like Camp will soonfeel the same relief. Starting August 1,the beginning of the third year of theNational Master United Parcel ServiceAgreement, the company is required tocreate 2,500 new full-time jobs in eachof the next four years—10,000 new fulltimejobs total.“That’s great news,” saidJohn Adamiak, a 25-yearTeamster who has worked atUPS since 1979.After working part-timeat UPS for years, Adamiakgot a combo job. He nowworks as an evening clerkand as late night/earlymorning sorter at theCerritos, California hub.“I think the union is doing a goodjob continuing to get more full-timejobs. The combo jobs have been a majorstep. Before the combo jobs, you didn’treally have as many full-time opportunities—somethingto strive for,” saidAdamiak, a member of Local 396 inCovina, California.For Adamiak, who is married and hastwo sons, 12 and 9, the full-time job hasmade life much easier.LIFE CHANGING“My salary has gone way up. I can affordmy house. I can afford what a familyneeds,” he said. “Most of the part-timersare working two jobs. It’s so much morestable having a full-time job.”Mike Mann, a member of Local 79in Tampa, Florida, worked as a parttimerfrom 1989 until 2001, when acombo job became available.“A full-time job gives you a securefuture,” said Mann, a steward since 1990.“To have a guarantee of eight hours aday and full-time benefits is the biggestplus of all. Now I know that if I need todo this job until I’m older, I can do it.”“I’m grateful that the Hoffa administrationfought the tough fight tomake UPS live up to its contractualobligations,” he added.“We are pleased that more UPSTeamsters will have the opportunity to10 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

work full-time to provide a secure futurefor themselves and for their families,”said Ken Hall, Director of the TeamstersParcel and Small Package Division. “Thefight for full-time jobs at UPS is a fightfor justice. The union will be vigilantand will hold the company’s feet to thefire so that these jobs are created.”“Additionally, the International Unionis working with locals to make sure thatwe inforce the contract language that protectsthe jobs created under the 1997-2002contract,” Hall added.The fight hasn’t been easy. In early2000, employees finally got more fulltimejob opportunities.An arbitration victory for the unioncompelled UPS to fulfill its contractualobligation to create 2,000 new full-timejobs for the first year of the 1997National Master United Parcel ServiceAgreement. The arbitration victory washuge. UPS had to create the jobs bymid-2000 and had to give workers backwages with benefits. The total paymenttopped $80 million.Following the ruling and underintense pressure from the Hoffa administration,the company agreed to createthe 2,000 jobs called for in 1998, thesecond year of the contract, and in subsequentyears of the contract.Company officials refused to createthe new positions called for in the firsttwo years of the contract, claiming areduction in volume flow following theTeamsters successful 15-day strike in1997. Knowing that UPS created a falsedecline by cutting its rural groundpackage service and by creating falselayoffs through “voluntary” days off,the union challenged the company’sfigures at the arbitration hearings.In order to avoid similar problemsunder the current contract, the unionhas gotten the company to agree inadvance that it will fulfill its obligationwithout challenge.FALL 2004 UPS TEAMSTER 11

IN DEPTH SAVING FOR COLLEGESmartChoicesFORFUTURE SCHOLARS— WedidCOLLEGEyourhomework to findthe best way tosave for college,circa 2004.By Kristin DavisIf 529 plans were presidential candidates, they’d be thefront-runners in the college-savings race, the darlings ofthe press. But they wouldn’t be a sure thing at the polls.Plenty of financial planners have elected other college-savingsvehicles for their clients – and for their own kids.“I love the Coverdell education-savings account – it’sgot everything,” says William Starnes, a financial plannerin Newark, Del., who puts the legal limit of $2,000 a yearinto Coverdells for his two sons, ages 4 and 3. (He’ll soonopen a third account for his newborn son.) Starnes andhis wife, Lynda, put additional savings into Roth IRAs,which can be tapped for college bills, too.Coverdells first, then 529s, is Cheryl Costa’s creed. She’san adviser in Natick, Mass., who invests accordingly forher three youngsters, ages 11, 10 and 6.Jon Houk, an Atlanta planner, disagrees. He favors custodialaccounts for his children, ages 12,1 0 and 9. Moneyin those accounts – and the tax bill on earnings – belongsto the kids. Clients sometimes ask about 529 plans, hesays, but he steers them to custodial accounts instead. “Iwant to control the investments and buy anything I wantin the account,” Houk says.No wonder parents who aren’t financial planners areconfused when it comes to how best to save for college. Infact, there’s no perfect choice.But custodial accounts have gained luster since the2003 tax cut reduced the rate on dividends and capitalgains to as little as 5% for those in the lowest tax bracket.Since that’s usually where youngsters reside, it means youcould pay minimal taxes on up to $1,600 a year in earningsin a child’s name – no tax on the first $800 and 5%on the next $800. (For children under age 14, the parents’higher tax rate – probably 15% on dividends and capitalgains – applies to higher earnings. Older kids always usetheir own tax rate.) Falling tax rates devalue the primeappeal of the 529 and Coverdell tax shelters – the fact thatearnings are tax-free if used to pay college bills – and mitigatethe tax man’s sting on custodial accounts.Plus, starting in 2004, both Coverdells and 529 plansare treated as parental assets in college financial-aid formulas– reducing the chance that Coverdells will knockyou out of the financial-aid ballgame. With both vehicleson an equal financial-aid footing, Coverdells look muchbetter than they used to for families who might qualify for12 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

IN DEPTH SAVING FOR COLLEGELooking to the FutureJAMES R. HOFFA SCHOLARSHIP EASES HIGHER EDUCATION BURDENaid – the very folks who may not bebothered that contributions are limitedto $2,000 a year per student.A HARD LOOK AT 529sState-sponsored 529 plans still have plentyof fans. “Tax-free is a bigger deal thantax reduction, so education planningreally hasn’t changed that much lately,”argues Steven Weydert, a planner in ParkRidge, Ill. As long as withdrawals are usedfor qualified expenses - college tuition,fees, room and board, books, and supplies– 529 earnings are tax-free. Plus, 26states and the District of Columbia allowparents to take a tax deduction or creditOne hundred sons and daughters of Teamsters haveless of a financial burden when it comes to collegethanks to the James R. Hoffa Scholarship.“This scholarship is truly a fitting memorial to myfather,” said Jim Hoffa, Teamsters General President.“As college gets more and more expensive, thesescholarships will help the young men and women whoworked hard for them. This scholarship furthers theTeamster tradition of helping working families.”This year, the scholarship winners will use themoney to further their education, and honor thememory of James R. Hoffa as well as the legacyof the Teamsters.Applicants compete in one of the five geographicregions where the Teamster parent’s local union islocated. Thirty-one of the awards total $10,000 each.These four-year scholarships are disbursed at therate of $2,500 per year and are renewable annually.Sixty-nine of the awards are onetime$1,000 grants. These scholarshipsare disbursed to the collegeor university at the beginningof the recipient’s freshman year.> For more information about theeligibility requirements and the applicationprocess, visit the web site atwww.teamster.org.for all or part of the contributions madeto their home state’s plan. If you don’tlike your state’s offering, you can invest inany other plan and use the money at anyaccredited college in the U.S. as well asmany schools abroad.The accounts appeal to savers at allincome levels. You can open an accountwith as little as $25 a month or make asix-figure contribution all at once. Andthere are no income restrictions to shutout high earners. But the down-sidesshould give some savers pause.No guarantee. Earnings may or maynot be tax-free for younger children. Thelegislation that grants 529s tax-free statusexpires after 2010. It’s anticipated thatCongress will eventually make tax-freewithdrawals permanent, but there is noguarantee. If the law does “sunset,” childrenunder age 11 or so today may windup paying taxes on earnings.Shifting sands. “Owners of 529s havethree masters: state government, federalgovernment and plan sponsors,” all ofwhom can make changes, points outSteven Wightman, a planner inLexington, Mass. Last year, for instance,New York’s contract with TIAA-CREFexpired, and the state switched to aVanguard-run 529 plan. Participants’money was moved into entirely newinvestments. Timothy Hayes, presidentof Landmark Financial AdvisoryServices, in Rochester, N.Y., likes the newplan – for his clients and for his two children– but misses the TIAA-CREFoption that paid a guaranteed 3%. Heoften recommended that choice for childrennearing high school graduation.Oregon dropped Strong CapitalManagement as its plan administratorlast November after the CEO was chargedwith illegal market-timing activity.Parents will have to choose from a differentslate of options under a new plan thatuses Oppenheimer and Vanguard funds.Investments are limited. You’re stuckwith the choices – usually a selection ofmutual funds – offered by the plan. NewHampshire, for example, offers Fidelity’sUnique plan, of stocks and bonds as achild matures, and three “fixed” portfolios(100% stocks, 70% stocks, etc.). Virginia’sCollege America plan includes 21 standalonemutual funds that you can use tocustom-build a portfolio, but even thenyour options are limited to three growthfunds, five bond funds and so on, all fromthe same family: the American Funds.Fees are high. Even among plans thataren’t sold by brokers (and thus don’t havehigh upfront loads or annual sales fees),expenses are higher in most 529 plansthan in equivalent mutual funds. Fundratingservice Morningstar calls a 529 plan“reasonably priced” if the annual expense14 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

atio is less than 1% for a portfolio that’shalf in stocks and half in bonds. Below0.70% is considered cheap. OwningVanguard’s Moderate Growth Portfolio(50% stocks and 50% bonds) inside NewYork’s 529 plan costs a mere 0.60%. Butyou can buy the same combination offunds directly from Vanguard and put it ina Coverdell or custodial account and payannual expenses of no more than 0.22%.“The reinvested expense savings can addfive digits to the outcome of college savingsfor a preschooler,” says Wightman.The threat of penalty. You’ll paya penalty (10% of earnings) plus taxesif the money isn’t used for educationby the original beneficiary or by afamily member.So how do the new-and-improvedcontender compare?THE CASE FOR COVERDELLSWe’ll differ with planner and parentWilliam Starnes: The Coverdell hasalmost everything. There’s no booby trapin the law that might take a wayCoverdell’s tax-free earnings. The accountworks more like an IRA (before it wasrenamed in honor of the late Georgia senatorPaul Coverdell, it was called an educationIRA) in that you can choose anyinvestment. You can use the proceeds notonly for college expenses but also for aprivate elementary or high school or evenfor other “educational” expenses, such ascamp or a computer. There are no extralayers of management expenses to eat intoyour returns. And now there’s no financial-aid“penalty,” compared with investingin 529 plans. (Previously, Coverdellswere considered a student asset, whichmeant that 35% of the account balanceeach year went toward the amount a familywas expected to contribute to collegecosts. Now – like 529s – Coverdells are aparental asset, so the bite is no more than5.6% of your savings.)Technically, top-tier earners are shutout by an income ceiling: You can’tcontribute the full amount to aCoverdell if you earn more thanThe price of tuition atfour-year public universitiesrose 11% last year.— THE COLLEGE BOARD$190,000 a year as a married couple ormore than $95,000 if you’re single.However, there is a back door. You cangive $2,000 to your child and let him orher contribute to the account. Or, if thechild’s grandparents’ income is belowthe threshold, they can fund it.The Coverdell’s big flaw is that nomore than $2,000 per year can go into achild’s account, no matter how many peoplecontribute. That amount works finefor parents who start young, contribute alittle at a time (say, $166 a month) anddon’t’ aspire to save more than half thecost of a private education. But it fallspainfully short for those who can savemore or who want to invest lump sums.That shortcoming doesn’t troubleStarnes at all. “It’s hard to save the entireamount in the Coverdell, but who cares?”Starnes says. “Most people shouldn’t besaving 100% of an anticipated expensesin a vehicle that has a penalty for noneducationuse.” Recognizing that mostpeople are saving for college and retirementat the same time, Starnes likes tocouple the Coverdell with a Roth IRA.The Roth allows you to take out contributionsat any time, tax- and penaltyfree,so you can tap the money for collegeexpenses if you need to or let it ride forretirement if you don’t.One added quirk of the Coverdell isthat if the money in the account isn’tused for education by the time the beneficiaryis age 30, the proceeds are paidout to him or her, subject to taxes and a10% penalty on the earnings.Cheryl Costa prefers to pair theCoverdell with a 529. “I nearly alwaysrecommend that my clients put $2,000into coverdells before they put moneyinto 529 plans,” she says.So who’s the ideal Coverdell saver?A family with young children that plansto save for college a little at a time. Orany college saver who doesn’t mindsupplementing a Coverdell with a secondaccount.NEW LIFE FOR CUSTODIAL ACCOUNTSA big cache of Dell stock is the collegekitty for Stuart Hutchison, 16, who livesnear Austin, Tex. His parents, Abigail andWayne Hutchison, invested $6,000 in thecomputer retailer in the early 1990s.Today the shares are worth close to$500,000 – enough to pay for college,grad school and then some. But insteadof paying 15% of the gains to Uncle Samin the form of capital-gains taxes, they’vebegun to gift the stock to Stuart’s UTMA(Uniform Transfers to Minors Act)account. Stuart pays nothing on the first$800 in gains he realizes inside theaccount and just 5% on the remainder.Yes, a tax-free withdrawal from a 529plan should be even more appealingthan a low-tax capital gain in a custodialaccount. But not necessarily – if, forinstance, your return has been retardedby higher expenses in a 529 plan thanwould have been the case for a comparableinvestment in a custodial account. Ifthe litigations of 529s and Coverdellsleave you cold, the difference betweentax-free and low-tax is narrow enough tomake UTMAs a reasonable alternative.Aside from the low tax rates (good atleast through 2008), custodial accountsFALL 2004 UPS TEAMSTER 15

IN DEPTH SAVING FOR COLLEGE529sStateby StateSee how your state’s college-savingsplan measures up to others acrossthe country. Plus, share your questionsin the Kiplinger Community.Kiplinger.com/magazine/linkshave great flexibility: You can invest themoney in anything you like and not facea penalty if the proceeds are used forsomething other than education. “I liketo make changes in the portfolio givenmarket conditions,” says adviser Houk.(With a 529 plan, you can shift amongthe investments within the plan, or moveto another state’s plan, only once a year –and that involves time and paperwork.)The flip side of course, is that moneyyou put in a custodial account is anirrevocable gift to the child. At a certainage – 21 in most states but 18 in a few -LIFETIME SAVINGS ACCOUNTSGOING NOWHEREFASTFor the second year in a row, President Bush has proposed Lifetime SavingsAccounts, super versatile tax-free savings accounts that would end, once andfor all, any argument about which kind of account is the best for college savings.Anyone could contribute up to $5,000 per child per year, regardless of hisor her income. Over the years, it would be easy to amass enough to cover thecost of private, four-year educations, and the contribution limit would rise eachyear with inflation. You could invest in anything you like and make tax-free withdrawalsat any for any purposes – with no age limits and no complex rulesabout qualifying expenses.But the proposal isn’t high on the President’s to-do list in this election year, andwe think Congress will once again ignore it. If the accounts make it off the drawingboard, you’ll be able to roll 529-plan and Coverdell money directly into them.your son or daughter gains control ofthe account. A house or a Harley, a baccalaureateor a bacchanal? The choicewill be your child’s.Not everyone worries about themoney being squandered. “Our son is areally responsible kid. We don’t have anyfear of that happening,” says AbigailHutchison. Besides, if your state isamong those where custodial accountsend at age 21, you may well deplete theaccount paying college bills before thechild gains control.For financial-aid purposes, UTMAaccounts are considered student assets,assessed more heavily than 529 plans orCoverdells. So stay away if you expect toqualify for need-based aid. (In the realworld, few families where Mom andDad’s income exceeds $100,000 qualifyfor need-based aid other than loans.)Finally, super-low capital-gains ratesare set to expire after 2008, so the addedappeal of UTMAs is temporary unlessCongress extends the tax breaks ormakes them permanent. That makes thebest assets for these accounts ones youplan to sell before 2009. In fact, the capital-gainsrate for lowest-brief opportunityto sell custodial-account investmentsand pay no capital-gains taxes at all.The best candidates for UTMAs.High-income families with older childrenwho are not likely to qualify forfinancial aid benefit most. Also, thosewho want maximum flexibility for theirinvestments and who want to contributemore than the Coverdell’s $2,000 limit.SAVE IN YOUR OWN NAMELower capital-gains rates also boost theappeal of keeping your kids’ collegemoney in your own name. By using atax-efficient investment, such as a stockindex fund or an exchange-traded fund,you’ll avoid unpredictable annual capitalgainsdistributions that are a fact of lifewith mutual funds. When it comes timeto sell the investment, you can decidewhether it makes sense to gift some ofthe money to your child – to take advantageof lower taxes on gains – or keep itin your own name. Keeping it in yourname would mean a higher capital-gainsrate, for example, but would reduce theexpected family contribution that iscranked into the financial-aid formula.Of course, if you’re carrying big capitallosses from the bear market, you mightavoid tax on the gains altogether. “Wehave been booking stock losses for thepast three years and suggesting that parentssequester education dollars inaccounts holding tax-efficient indexfunds,” says John Henry McDonald, aplanner in Austin, Tex. “Losses againstgains equal tax-free withdrawals with nopenalties if the 18-year-old shows up withstrange piercings and a Fender guitar.”Who can go it alone?Investors with big stock-loss carry-forwards.And parents (or grandparents)who want to keep the money for otherpurposes if it is not needed for college.SOMETIMES, 529S STILL WINTo be fair, plenty of planners haven’tturned their backs on 529 savings plans.16 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

As president, John Kerry will offer a fully refundable CollegeOpportunity Tax credit on up to $4,000 of tuition for every year of collegeand offer aid to states that keep tuitions down. And he will launch a neweffort to ensure that all of our workerscan get the technical skills and advanced training they need.— KERRY CAMPAIGNPHOTOGRAPH BY JIM SAAHIn a perfect world, Weydert says, mostfolks should put the first $2,000 in aCoverdell, then fund a 529 plan. In practice,he says, most of his clients just setup 529 plans because they offer one-stopshopping. Who can chose a 529 withoutlooking back?Parents of older kids, who will usemost of the funds before 2011.Parents who will put college savingsin income-producing assets, such asbonds, certificates of deposit andmoney-market funds. Income from suchinvestments doesn’t qualify for thereduced capital-gains rates that makealternative strategies appealing.Parents who want to put their collegeinvestments on auto-pilot. Investmentchoices are limited inside a 529 plan, butthe age-based portfolios that automaticallyfine-tune your holdings accordingto your child’s’ age are just right for parentsreluctant to make their own selectionsor unlikely to monitor the investmentscarefully.Parents in a position to max out on529-plan-affiliated credit-card benefits.This may sound frivolous, but CherylCosta doesn’t sneer at the $1,700 in529-plan contributions she amassed inrebates on her MBNA Fidelity 529 Plancredit card last year. She got a 2%rebate on everything charged to thecard, which included her husband’sreimbursable business-travel expenses.(MBNA has since set a rebate cap of$1,500 per year.)Wealthy parents or grandparentswho want to make large lump-sum contributions.The plans are the only financialvehicles that allow you to contributeup to $55,000 at once (or$110,000 for a married couple) withoutgift-tax consequences.Residents of states with generous taxdeductions and low-cost 529 plans. InNew York, for instance, married couplescan deduct contributions of up to$10,000 per year to the state’s low-costVanguard plan. Deductions are also generousin Mississippi and Missouri, whichuse TIAA-CREF- managed plans.Still aren’t sure which college-savingscandidate gets your vote? Goahead, pick one, and pull the lever anyway.Saving somewhere is always betterthan saving nowhere at all.Editor’s Note: This story is reprinted withpermission from Kiplingers Personal Financemagazine, May 2004AVERAGE COLLEGE COSTS 2003-2004But Did You Know That...k Four-year private $19,710 (up 6 percent from last year)k Four-year public $4,694 (up 14.1 percent from last year)k About 29 percent of students attending four-year colleges pay less than $4,000 fortuition and fees per year.k Almost 70 percent of students attending four-year colleges pay less than $8,000 fortuition and fees per year.k Only 8 percent of all students attend colleges where tuition and fees total $24,000and over per year.k Two-year public $1,905 (up 13.8 percent from last year)k 43 percent of all students attend two-year colleges. The average tuition and feesfor a public two-year college is less than $2,000 per year.k Students will pay, on average, from $337 to $368 more than last year for this year’sroom and board, depending on the type of college.k The average surcharge for out-of-state or out-of-district students at public institutionsis $3,967 at two-year colleges and $7,046 at four-year colleges.k A record $105 billion in financial aid is available to students and their families, anincrease of 12 percent over last year.k Almost 60 percent of undergraduate students receive some form of financial aid.k Almost half of all college students receive grant aid. In 2002-2003 grant aid averagedalmost $2,000 per student in two-year public colleges, over $2,400 at publicfour-year colleges, and about $7,300 per student at private four-year colleges.FALL 2004 UPS TEAMSTER 17

Teamster-UPS401(k) Plan Pays OffSince 1988, UPS Teamster Bob Reese has put aside some of his paychecktoward the Teamster-UPS 401(k) savings plan.Reese is happy he made that decision more than 16 years ago.“I’ve been participating in the Teamsters-UPS 401K plan since it got startedback in 1988. I always suggest it to younger people. They need threethings for their retirement: their savings, their pension and their Social Security. It’sgreat! You get to save money and save on your taxes at the same time. Sure, there havebeen ups and downs in the market, but I have rode them out,” said Reese, a 35-yearmember of Teamsters Local 175.The Teamster-UPS 401(k) savings plan was launched in 1988. It is one of thefirst and largest 401(k) plans in the country, with nearly $3 billion in assets. As aplan participant you will receive statementsabout your account from the planas well as a quarterly newsletter. Thenewsletter describes various enhancementsto the plan.‘I NEVER MISSED IT’“I would never have been able to save thismuch money on my own. But, becausethe 401(k) plan deducts the money on amonthly basis, I never missed it,” addedReese. “I started at the minimum contribution,3 or 4 percent, and now, since Iam close to retirement, I am contributingthe maximum allowed.”The plan allows you to put moneyinto a tax-deferred account—a retirementaccount. Since your contributionscan be made pre-tax, your monthlycontributions to the plan save youmoney now by reducing your taxableincome. You can make withdrawals,without penalties, after you reach theage of 59 1 /2.A 401(k) plan is designed to supplementyour defined benefit plan, or pension.The 401(k) plan is a defined contributionplan because you determine howmuch money to place into the account.ILLUSTRATION BY PAUL CORREIA18 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

Comparison of Two of the Funds(randomly selected)GOVERNMENT SHORT-TERM INVESTMENT FUND*Goal: The Fund seeks to provide the safety of principal and current income offeredby short-term U.S. Government securities.Investment strategy: The Fund seeks to preserve principal and offer liquidity byinvesting only in short-term assets of the U.S. Treasury and its Agencies. The Fund’sinvestments have a short time to maturity, with no more than 20 percent of the Fundinvested beyond 90 days. No security may have a maturity of more than 13 months.BRIGHT HORIZON 2025 FUND*Goal: The Fund seeks long-term growth with some stability of principal for investorsplanning to retire in approximately the year 2025.Investment strategy: The Fund invests in a combination of U.S. Stocks and Bondsand allocates its assets among those funds according to a pre-determined assetallocation strategy. On an annual basis, the Fund shifts assets to a more conservativeavenue as the year 2025 gets closer. Over time the stock portion of the Funddecreases and the bond portion increases. By the year 2025 the Fund will be investedin its most conservative mix of cash, bond and stock investments and will staywith this target allocation indefinitely.WHAT YOU WILL NEED TO OPEN AN ACCOUNT:1.be a part-time or full-time UPS Teamster employee2.your Social Security card3.your mailing address4.there are no fees for opening the account5.call 1-800-537-0189 or visit *information from State Street Global Advisors’ GSTIF and Bright Horizons 2025 information sheets.There are a variety of growth optionsfor your contributions. The website,teamsterups.csplans.com, or the toll-freenumber (800)-537-0189, explains thedifferences in the options. Basically, theyrange from what could be called verysecure government bonds to mutualfunds, among others.THE PLAN OPTIONS LIST:■ Government Short-Term InvestmentFund (GSTIF)■ Stable Value Fund■ Bond Market Index Fund■ Balanced Fund■ S&P 500 Equity Index Fund■ S&P 400 Midcap Index Fund■ Russell 2000 Index Fund■ Fidelity Magellan Fund■ Bright Horizon 2005■ Bright Horizon 2015■ Bright Horizon 2025■ Bright Horizon 2035HOW TO SIGN UP FOR THETEAMSTERS-UPS 401K PLAN:Call (800)-537-0189 or access the plan’s site at teamsterups.csplans.comYou don’t need a PIN number to register—just some ID, such as your SocialSecurity number, your name, address, etc. Start saving now!FALL 2004 UPS TEAMSTER 19

CommunityServicewith a SmileUPS Driver Wins Prestigious Service AwardOut of the 357,000 UPS workers worldwide, only onewas chosen for the company’s prestigious Jim CaseyCommunity Service Award. This year, the person chosenis a Teamster.Tony Newkirk, a Local 175 member from BeardsFork, West Virginia, is known throughout his community as a manwho deeply cares about his neighbors. For instance, when a floodedcreek left elderly residents ofBeards Fork in need of aquick evacuation severalyears ago, Newkirk steppedin immediately.The UPS feeder driverknown for his ongoing serviceto the community organizeda team that used offroadvehicles and wheelchairsto guide elderly residentsout of town, across atrain trestle and into shelter.Newkirk doesn’t just goaround saving lives whenthere is a natural disaster, though.To local residents, Newkirk is a heroand friend as well as mentor and teacherto troubled youth.“There are so many people in ourcommunity who need assistance andhave no one to visit them or attend totheir needs,” said Newkirk. “Helpingpeople, seeing their smiles and buildingrelationships is what motivates me.”In recognition of his commitment tostrengthening his community, UPSrecently awarded Newkirk the Jim CaseyCommunity Service Award. The awardis named after Jim Casey, founder ofUPS, and is given annually to one UPSemployee around the world who exemplifiesoutstanding service to the community.Newkirk was selected followinga search for the top volunteer among allUPS employees.OTHER VOLUNTEER WORKIn addition to his work with local residents,four years ago Newkirk began20 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

working with the SouthernAppalachian Labor School (SALS), anorganization devoted to helping economicallychallenged communities formerlysupported by the coal miningindustry. Through the SALS program,Newkirk helps to rehabilitate homes forlow-income families.Through his work with SALS,Newkirk plays an active role in “YouthBuilt,” a program that offers high-schooldropouts a stipend to rebuild homeswhile they attend GED classes.Newkirk’s job is an integral componentof his outreach. As a feeder driverfor the company, Newkirk has elected tomaintain a work schedule that allowshim to be available during the day for hisvarious community service projects.“Helping people,seeing their smilesand building relationshipsis what motivates me.”— TONY NEWKIRK“UPS chose well in giving Tony thisaward,” said Ken Hall, President of Local175. “He is helping to improve the livesof everyone in his community. We’reproud to call Tony our Teamster brotherand his generosity sets an example therest of us should follow.”A new benefit forTeamster members —Visitwhen planning your next vacationFALL 2004 UPS TEAMSTER 21

SAFETY NETTeamster Contract ProvidesNew Safety NetLONG-TERM DISABILITY COVERAGE BEGINSWhen UPS worker HectorBasulto fell off a ladder athis home in October 2003,he turned to his shorttermdisability coverage for help makingends meet for himself and for his family.But the coverage ran out after 26weeks, leaving him without any incomefor almost eight weeks before he waswell enough to return to his job.“You never plan for anything likethis,” said Basulto, who works in a“combo” job.But starting this past August, fulltimeUPS workers covered by theTeamsters National Master United ParcelService Agreement now receive longtermdisability coverage for injuries orillnesses suffered off the job.“Now we have something we canfall back on if we get ill or getinjured outside of work.”— GARY IBANEZWorkers injured on the job are coveredby workers’ compensation. Thelong-term disability coverage providesfor up to five years assistance.The short-term disability provides alower benefit for a shorter duration.The new coverage is much better. Itprovides up to 60 percent of a worker’sbase salary in the week preceding theinjury, or a maximum of $500 per week.TOP WORKER ISSUE“This long-term disability coverage wasa top contract priority of our members,”said Ken Hall, Director of theTeamsters Parcel and Small PackageDivision. “We fought hard for this inthe last round of negotiations, and wehope it provides security for our memberswho suffer an injury or illnessunrelated to the job.”Basulto, a member of Local 79 inTampa, Florida, broke his leg and anklefrom the fall.“It was very tough to get by, but wewere able to survive because we livebelow our means,” he said.Basulto hailed the union’s efforts toget the company to provide the longtermcoverage.“It gives us a little more security inour personal lives,” the 23-yearTeamster said. “It reaffirms theTeamsters’ commitment to secure thefuture of its members.”Gary Ibanez, a steward at theCerritos, California UPS center, saidone of his coworkers got ill and missedwork. The coworker’s short-term disabilitycoverage ran out, and it put aburden on the man’s family.“All the drivers kicked in weeklyto help his family. We made sure hiswife could afford the basics. You’vegot to take care of your people,” saidIbanez, a 30-year veteran of UPSwho has been a steward for morethan four years.Ibanez agreed that the long-termcoverage is great. “Now we havesomething we can fall back on ifwe get ill or get injured outside ofwork,” he said.22 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

STEWARD’S CORNER>> STEWARD: FIRST PERSONLearning is Lifelong ProcessBY GARY WOLFESTEWARD, LOCAL 238 • CEDAR RAPIDS, IOWAAs a steward, we are on thefront lines every day in thebattle for justice for workersat UPS.I have worked at UPS for 23 years asa member of Local 238 in CedarRapids, Iowa. For 15 years I was a package-cardriver; in recent years I haveworked as a pre-loader/air driver.During my 23 years at UPS, I have beena steward for about 13 years. I work atthe UPS center in Burlington, Iowa.As a steward who advocates on behalfof 60 coworkers, I always want them toread their contracts to get to know theirrights. The key to making sure the companyabides by the contract is for workersto be knowledgeable so they canhold the company accountable.I truly believe that you can neverstop learning. If you haven’t read yourcontract yet, it’s not too late to start. Ifyou have a question related to yourunion rights, talk to your steward.PERSONAL EXPERIENCEThat philosophy was reinforced forme late last year when I attended aday-long stewards’ training workshopin Des Moines, hosted by the TeamstersInternational Union.The training gave us the ins andouts on how to better do our job. Wereviewed the grievance process, learnedhow to better investigate cases andother skills.One tool I’ve used since the trainingis to be more assertive in getting informationfrom the company. Since thetraining, I have met with companyofficials and I have gotten the informationI’ve needed for four cases and stillkept a good working relationship withmanagement.Most importantly, the training gave usthe opportunity to meet other stewardsfrom the state, which is very valuable.Everybody got to share their stories, theirsuccesses, their concerns, and generallyvoiced their opinions to the Union staffon a variety of issues.“I truly believe that you cannever stop learning …If you have a questionrelated to your union rights,talk to your steward.— GARY WOLFEThe refresher course on the grievanceprocedures was especially helpful. Welearned how to better investigate grievancesbased upon the information theTeamsters gave us regarding not only thenew language but also reinforcing theold language.The seminar was also helpful because Ilearned just how important we are to theunion and how important our jobs are.And, the union listened. As a result of theconversations that day, the InternationalUnion actually sent a representative in toobserve and asssist in our grievance panel.I believe that the union’s pressure ismuch stronger at the panel and in thefacilities and I am glad to see my duesmoney at work.FALL 2004 UPS TEAMSTER 23

HISTORICAL PERSPECTIVEOne Model T Fosters A FleetNEARLY A CENTURY OF SERVICE BY UPSJ.E. Casey founded United ParcelService in Seattle in 1907 andremained active in the companywell into the 1960s. He began in abasement office, with four men onbicycles as his staff. Casey dispatched hismessengers with care, always alert to theneed for good service.In 1913, Casey purchased his firstModel T Ford truck, and converted themessenger business into a motorizedmerchants service. Since then, all types ofmotorized vehicles, from battery poweredelectric trucks to airplanes, have played akey role in each UPS advance.“The UPS motto of quality service hasremained the same since the first day,”In 1964, Teamsters from Local 243 volunteer inDetroit's inoculation project. The Teamsters donatedtime and UPS donated trucks to enable vaccines toreach more than two million area residents.said John Evans, retired member of Local25 in Boston and UPS employee for 36years. “That’s etched in stone and willnever change.”The growth of UPS was also a byproductof suburbanization. As peopleleft the cities, department stores had toexpand their base to keep customers.In 1953, UPS took a major step forwardwith an expansion of a wholesale operation/smallpackage delivery serviceto retailers from wholesalers andmanufacturers.WINGED DELIVERYCasey did not like to travel by air, butthat did not stop him from envisioninga growing air fleet for thecompany. In 1955 the companyre-introduced its airborneservice, which had a shortlivedfirst run in 1929. Thenew service linked the 14metropolitan areas UPSserved at the time.By 1975, UPS expansionhad created a “golden link”across the country, becomingthe first package delivery companyto serve every address inthe contiguous United States.UPS continued the growthtrend in this country and alsobegan moving packages internationally.The FAA granted UPSthe authority to operate ownaircraft in 1988, allowinginternational service toexpand to 175 countriesthe following year.EMPLOYEES GAIN THEIR OWN VOICEEvans noted that major positivechanges for employeesbegan once the Teamsters gained more ofa voice in the workplace.“Our benefits began to improve andsafety factors went way up,” he said. “Plusthe company began to realize the driverswere serious about their training and gaveus more of a role in developing it.”“In the old days we knew how importantthe union was to us at UPS andalways wore our union pins to show it.But that faded as new guys came on overthe years,” Evans continued. “It has startedup again though—I see more and moreof the young guys wearing the button ontheir shirts. That pleases me to no end.”MR. BROWN MEETS HIS MATCHOther changes were taking place as well.By the mid-1970s, women were movingfrom desks to the driver’s seat.“There was not a big rush of womenlooking to be drivers at first. Womenweren’t brought up to think they couldhandle it,” said Tina Anderson, a 30-yearveteran driver from Local 63 inCalifornia. “The company didn’t quiteknow what to do with us. They may havethought we’d give up—but we didn’t.Now you see women drivers everywhere.”UPS broke ground again in 1992 withtheir electronic ground tracking system,which allowed customers to check on theprogress of packages. This service addedreal-time capabilities in 1996.FUTURE TRENDS“It’s a go-go company, looking for opportunitiesat every turn. Always has been,”said Evans. “It won’t surprise me one bit ifthe next step you see is a ‘brown’ regularfreight company.”Today, just a few years short of thecompany’s centennial, UPS delivers morethan 13 million packages a day in 200countries and territories worldwide.“I never minded being known as ‘theUPS guy,’” said Evans. “It was a goodjob, with a good pension. I got to knowa lot of nice people over the years andprovide a useful service. What morecan you ask for?”24 UPS TEAMSTER FALL 2004WWW.TEAMSTER.ORG

OPENHeartsGive to the TeamstersDisaster Relief FundSend your tax-deductible donation to:Teamsters Disaster Relief Fund25 Louisiana Ave NW, Washington DC 20001

Join the DRIVE to build aTEAMSTERMAJORITYCorporations outspend unions by a margin of 15-1 insupporting their political candidates. With DRIVE,the Teamsters political action committee, we cancounter big business.DRIVE contributions go directly to Teamsterendorsedcandidates at all levels of government.Together, we can show our strength at City Hall,the State House and Congress.Visit the Teamster website or contact your local unionto find out how you can join DRIVE.Democrat, Republican, Independent, Voter Educationwww.teamster.org