Frequently Asked Questions: UPS Tentative Agreement and TeamCare Benefits

QUESTIONS ON THE UPS TENTATIVE AGREEMENT:

What happens if the tentative agreement fails ratification?
If the tentative agreement fails, the union will immediately conduct a strike vote among all active Local 710 UPS members and begin preparations for a strike. There would be no guarantee that UPS management would return to the bargaining table to renegotiate a new contract.

Are we voting on the tentative agreement by mail or in-person?
All votes must be cast by mail-in ballot.

When will I receive a ballot to vote on the tentative agreement?
Ballots will be mailed to all Local 710 UPS members starting January 26. Please return your completed ballot in the envelope provided as soon as you receive it.

If I don’t receive a ballot in the mail, how can I get one?
If you do not receive an official ballot, call the Local 710 union hall at (773) 254-3200. The local union will check to see if you were mailed a ballot, will make any necessary updates to your home address and send you a new ballot.

Are there wage increases in this agreement? What are they?
All full- and part-time Local 710 UPS members will receive wage increases over the length of the agreement. Members’ hourly wages will increase by $3.90 per hour over five years. Members will receive an hourly raise of $0.70 each of the first three years, a raise of $0.80 in the fourth year and a raise of $1.00 in the fifth year. Starting wages for part-time workers will be increased by $1.50 per hour from $8.50 to $10 upon ratification of the tentative agreement.

When will I receive my retroactivity paycheck? How much will I get?
Retroactivity checks will be issued within 45 days of contract ratification. The amount for each member will depend on the number of hours worked between August 1, 2013 and the date of ratification.

Will we lose our back pay if we vote down the tentative agreement?
It’s possible. If the ratification fails, retroactivity pay would become subject to further negotiations. The union wouldn’t be able to guarantee any back pay from the company. When back pay becomes a subject of bargaining, it is at risk of being taken away.

Will the new contract increase our pension benefits?
The trustees of the pension benefit fund determined independently whether to increase benefit levels. While pension benefits for part-time UPS members have increased, full-and part-time workers are enrolled in separate benefit funds. Any concerns about pension benefit levels should be addressed in writing directly to pension fund trustees.

Why couldn’t we use some of the money from raises to offset retirement insurance?
The tentative agreement is the result of negotiations between your union and UPS. Your negotiating committee worked to get you the best possible combination of wages and benefits.

What is required to retire by age 52?
Members will need 25 years of pension credit to retire by age 52.

What are the advantages or disadvantages to retiring before or after ratification?
There is no discernible difference to doing so before or after ratification.

How will wage progression change?
Any new workers hired after August 1, 2013, will enter a four-year wage scale progression. Download the tentative agreement and refer to Article 3.

Do coverage and peak times apply against wage progression?
Yes, for those qualified part-time workers listed in Article 3 of the tentative agreement. Download the tentative agreement and refer to Article 3.

Will 9.5 days still be paid out at triple time?
Yes. If you work three out of five days at 9.5 hours or more per day, the penalty for your overtime will still be paid out at triple time, pursuant to the tentative agreement.

Do we still have a contract extension agreement?
No. The previous extension agreement was terminated in November 2014. This action set the best stage for Local 710 to successfully negotiate a new tentative agreement with UPS in the shortest possible period. Terminating the extension agreement gave the Local 710 UPS membership the right to strike by December 19 had a tentative agreement not been reached.

If we vote down the tentative agreement, will UPS take items off the table?
Everything would remain negotiable. There are no guarantees that anything would be protected or carried over from this tentative agreement.

Why did our bargaining committee recommend we accept this agreement?
This agreement will provide you with security for years to come in a very uncertain labor climate. Similar agreements have already been accepted by 98% of UPS Teamsters nationwide. The tentative agreement includes substantial improvements from the previous contract and the previously rejected proposal from last April. It has also done away with the old 5-and-7 rule once coveted by UPS. This agreement offers members better vacation schedules and pay as well. Each new contract a step forward for the Local 710 membership and can be a real building block to making sure UPS is a fair employer.

Will there be any new jobs offered to part-time workers?
Yes. There will be 550 job opportunities offered to part-time workers to move into full-time positions over the length of the agreement.

Will we still get two consecutive days off under the new agreement?
Yes. The union successfully eliminated offending language of 5-and-7 scheduling under Article 4 previously submitted by UPS management.

What will the union be doing to stop subcontracting at UPS facilities?
We have improved language on subcontracting in this agreement. UPS has agreed to exhaust all reasonable efforts to use Local 710 members over any subcontractors. The rejected proposal from April had no protections against the erosion of jobs through subcontracting.

How has my vacation pay changed?
The substantial improvements to vacation pay are listed in Article 7. There are increased numbers of hours per week paid for part-time and full-time vacation. Download the tentative agreement and refer to Article 7.

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QUESTIONS ON TEAMCARE:

What is the one-punch rule and how could it affect my TeamCare coverage?
Under the UPS company plan, coverage was provided on a monthly basis. If you worked one day or “one punch” in the month, you had coverage for the month.

Under TeamCare, UPS must make a weekly health contribution for each week that you either: work; have any compensation (holiday, personal day, etc.); are on vacation; are off on FMLA; are on sick leave; are on Workers’ Compensation; are on short-term disability; or are on long-term disability.

For example, if you have an accident over the weekend and did not work at all during that following week, you are covered, because UPS has an obligation to make a contribution while you’re off work due to an illness or accident.

If I miss a punch, how much will it cost for one week of insurance coverage?
The term “punch” is misleading. You don’t necessarily need to punch a clock in order to have a contribution made on your behalf by UPS. See above for the periods that UPS is obligated under contract to make a health coverage contribution on your behalf.

In the event that you were off on lay-off for the entire week and you received no compensation that week from either a holiday day, personal day, optional day, vacation day, etc – then, in order to have coverage for that week – you would need to make a COBRA self-contribution at the rate established in the contract. The current rate until 8/1/2015 for a FT UPS employee is $363.82; and for a PT UPS is $229.77.

Can an optional week be split up at anytime during the year to satisfy the one-punch rule?
TeamCare understands that this is allowed under your collective bargaining agreement. Please refer to your collective bargaining agreement.

How much money will be deducted from each paycheck for TeamCare coverage?
There is no payroll deduction for the entire length of the collective bargaining agreement. UPS is obligated to make the entire health contribution.

What will I pay for retirement insurance?
Full-time Employment: For employees who were full-time prior to August 1, 2013, the monthly retiree co-insurance amount is determined based on the year of retirement and increases each year until the maximum contribution of $200 for one person and $400 per family is met:

2015: $100 One Person   |   $200 Family
2016: $150 One Person   |   $300 Family
2017 and 2018: $200 One Person   |   $400 Family

For employees who become full-time on or after 8/1/2013, the monthly retiree co-insurance amount is $200 for one person and $400 per family.

Part-time Employment: The monthly retiree co-insurance amount of $200 for one person or $400 per family applies to all part-time employees.

Why is the retiree premium higher than in previous contracts?
The retiree premium was negotiated in the collective bargaining agreement and mirrors the rates UPS is charging their current retirees for the UPS sponsored Retiree Plan.

Do I still have health care coverage if I go out-of-network?
Yes. In the event that you go out-of-network for non-emergency or non-referral care, there is a 10% reduction in benefits that is the member’s responsibility. All out-of-network emergency care, or care referred by your in-network PPO provider to an out-of-network provider, is covered without taking the 10% out-of network penalty.

Under TeamCare, can I keep my same doctor? Same dentist?
Since over 91% of all doctors and 96% of all hospitals are in TeamCare, the disruption of changing doctors is minimal with TeamCare. TeamCare negotiates with the largest PPO provider – BlueCross BlueShield of Illinois.

Members who are in BCBS now under the UPS Company plan – will see no change in their providers. Members who are in Aetna will need to check to see if their doctor is also in BCBS. During the transition of the UPS National contract and the Local 705 contract, the vast majority of Aetna providers also participate in BCBS.

Finally, in addition to BCBS, TeamCare also contracts with various provider groups. For example, the providers and facilities associated with the Carle Clinic are in-network under TeamCare. The out-of-network penalty, described in the previous question, will not be taken when using the Carle Clinic.

TeamCare does not have a mandatory Dental network. A member can continue to see their same dentist.

If I am on medical leave at the time of ratification, how will the transition to TeamCare affect my coverage?
If you are on short-term or long-term disability at the time of the transition to TeamCare, you will remain under the UPS Company Plan until you actively return to work at UPS.  Once you return to work and are reported to TeamCare by UPS, you will receive your ID cards and enrollment information from TeamCare.

If I’m on leave due to an off-the-job injury, will I still receive TeamCare coverage?
Yes, but not until you actively return to work.

Will my children have TeamCare coverage after I retire?
Yes. The dependents under the Retiree Plan remain unchanged from the current UPS Company Retiree Plan. Children can be covered on the Retiree Plan until age 19, or age 25 if they are a student.

Will TeamCare insurance be the same for full-time and part-time workers? What about retirement insurance?
Yes and no. While the active plan is exactly the same, the retiree plan is different. There is no Dental benefit or Vision benefit for PT under the TeamCare Retiree Plan.

If I retired after Aug. 1, 2013, but before ratification, am I enrolled in TeamCare?
All 710 UPS retirees who retired after 1/1/2014 and who are currently in the UPS Company Plan today will eventually move to TeamCare. These retirees will not move to TeamCare until after the Local 710 contract is ratified.

If I retire before ratification and go on Medicare, will my wife get TeamCare insurance coverage?
Yes. The spouse will get the Retiree Plan until they are age 65, or Medicare eligible, whichever occurs first.

Why can we retire from Local 710 at age 50, but aren’t eligible for retirement insurance until age 52?
Eligibility for Pension and eligibility for the Retiree Health plan are two different events. The earliest age to receive the Retiree Health Plan, as negotiated in the collective bargaining agreement, is age 52.

If this agreement is accepted, what will I have to do to change over to TeamCare?
Typically, there is nothing that a member will need to do to transition to TeamCare. All family members currently under the UPS Company plan, will transition automatically to TeamCare. A mailing will be sent out in advance of the effective date with TeamCare information, including your new ID cards.

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