If I recall correctly the presidents brought back a TA they themselves couldn't recommend to the membership.Chicken Little stepped in to make a show of indignation and "Suspended" the TA.Apparently he couldn't wrap his head around the negotiators coming back with a TA they could not recommend.
The International is above all else concerned with the revenue membership dues provide.They make nice speeches, print snazzy t-shirts and come up with catchy slogans but at the end of the day, they are interested in maintaining their revenue stream.They'll sacrifice 1500 to keep dues from the other 9500 coming in.Hey why not, they aren't hourly anymore,doesn't have a material impact on them either way.
I hope the Fleet guys educate themselves as far as PreFunding before they give away the company match and are left to fend for themselves by paying out of pocket for medical coverage when they retire. Those funds are basically deferred compensation and the company has gotten the Fleet guys to agree to give half of their fund to the company in exchange for return of their own contributions, which would be taxed at the max rate. They are giving away 50 cents on the dollar to screw themselves out of retiree medical. They lose the tax advantage now of saving for retiree health benefits and the match that has accumulated since they turned 30. In Aircraft Maintenance the company is looking for the same thing, and they admitted in their cost out they would get an immediate $57 million windfall. Thats around $5000 per worker that would be signed over to the company, in other words you would be funding your own increases with your future benefits, its a Lose-Lose proposition despite the companys spin"You no longer have to prefund retiree medical" , we never did, it was always voluntary, if you want to not have to pay a lot more when you retire.
Some may not be that concerned because the current rates the company is charging the non-union folks they ripped off are low, but they should recall how when we went with Flex Benefits the benefit dollars not only covered our benefits but many of us had funds left over to buy Flex vacation, now the benefit dollars are gone and we pay thousands of dollars plus copays , deductables etc. Once they get everyone they can to give up prefunding I expect those rates to skyrocket.
Perhaps many dont realize that Prefunding provides not only Early Retiree medical but also coverage when you are on Medicare, my 72 year old Mother pays over $200 a month for similar coverage as a retiree from Dow Chemical (Union Carbide). My father and her where promised free retiree medical but they had no Union, like our agents who were promised and lost the same thing.
So lets say you give up your $10,000 fund for $5000 (estimate based on what the company admitted they would get back from M&R)and you clear $3000 after taxes. That would only pay for a little over a year of coverage or less by the time the average worker retires.
The sad thing is if Fleet agrees to this and the Trust is dissolved for them it gives the company even more of an incentive to go BK, not less, because they could probably go after those who are already retired simply by asking the Judge to relieve them of that liability. They would have grabbed the $50 plus million in matching contributions, possiibly slid those funds into Trusts for executive benefits,(remember the SERPS in 2003?) then tell the courts that the retiree medical is a huge liability and they can no longer provide it for "free", they could not only shed those who recently retired but all the fleet guys who retired.
Think about it, if they are planning to go BK what a coup it would be to take away one of the few things we have thats protected in BK, the Trust fund for retiree health benefits. They could not get it in BK but if we agree to give it to them before BK then shame on us!!
I know people are desperate and things are hard but this deal is worse than taking money out of your 401K, since after all this fund has a 100% match, has had one since the first penny you put into it, and you would be agreeing to give it all back for a fraction of your own contributions now.
Vote No.