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OWENS:
For your own reasons you seem to be determined to make retirees the spoilers on this issue and it is unfortunate and false. Any change to retiree medical coverage is part of the 1114 process. The termination of the trust changes retiree medical coverage because many retirees still have money in the trust, both their own and the employer match, which is drawn down over a ten year period. So the question of how the trust is dissolved would be part of the 1114 process whether it was in the contract or not. The APFA contract has the same provision. But, what is really unfortunate is your attempt to argue that the retirees are somehow trying to take control of the active employee’s money to fund their retiree medical. I’ve looked at the docket, I’ve tracked the proceedings of the retiree committee, and no one has attempted to interfere with the distribution of the active employee’s money or the employer matching funds. This is nothing more than your usual speculation.
In response to another comment I read from one of your supporters, I attend meetings too and was told that each of the unions is looking for alternative retiree medical coverage and that participation in any alternative program would be voluntary and would not prevent distribution of any of the funds in the trust to employees who had participated. But, rather than spreading rumors, why don’t you ask your Local President to get the International’s position on this. Oh I forgot, the whole point of this is to spread rumors, and you are the Local President.
For the benefit of those who denied there would be a payment of Company prefunding contributions to active participants, this letter is a copy of one posted on the Local 512 web site. Attn: Owens, TWU informer, all remaining AMFA clones
September 4, 2012
To: All Local Presidents
Re: Pre-Funded Retiree Medical Contributions
Dear Brothers:
Unfortunately we have had an issue with misinformation being disseminated to the
membership and I have been receiving calls. The newly ratified TWU/AA
agreements, approval of which is scheduled for hearing before the Bankruptcy
Court next week, provides that TWU Members who are participants in the
prefunding program will receive their own contributions plus investment earnings
and the employer contributions plus investment earnings, subject to "successful
conclusion of the 1114 process”.
Please note that some of the misinformation circulating appears to arise from the
fact that the original prefunding agreement states that one of the potential uses of
the employer money would be to secure alternative retiree medical coverage in the
event the trust is terminated; such a program, the original agreement is clear, must
be agreed to by the parties. It is in connection with this provision that several
Local Presidents have asked that we investigate whether it is possible to secure an
alternative retiree medical program. Let us make absolutely clear, right here and
now, so there can be no misunderstanding: any such program is subject to TWU’s
agreement to it; and TWU will only agree to any alternate program if participation
in it by individual members is COMPLETELY VOLUNTARY. We will not
permit enactment of any program that would interfere with distribution of the
employer contribution back to any employee, absent that employees individual
authorization.
Fraternally,
Donald M. Videtich
International Representative
Transport Workers Union of America, AFL-CIO
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