United Parcel Service, Inc. (NYSE: UPS ) is reportedly planning to freeze the pensions for non-union employees.
Source: Mike Mozart Via Flickr
If the reports hold true, the United Parcel Service, Inc. will likely make it so that pensions for its non-union employees stop accruing. This would having it following in the footsteps of many other corporations int he United States. It would also help it deal with its massive U.S. pension deficit that is approaching $10 billion.
According to the reports, United Parcel Service, Inc. is planning to announce the freezing of non-union employee's pension plans on Wednesday. When asked about the decision by Fox Business Network , a spokesman for the company refused to comment.
The reports claim that changes to United Parcel Service, Inc.'s pension plans will only affect its management employees. It has 78,000 of these. The company reported last year that the pension plan includes $41.07 billion in obligations, but that only 76% of these obligations were funded.
United Parcel Service, Inc. took steps in 2016 to reduce its pension plan obligations. This included offering buyouts to all former employees that were vested in the plan. Roughly 22,000 accepted the offer. The freezing of the pension plans may also affect its negotiations with the International Brotherhood of Teamsters union, which are set to start later this year.
United Parcel Service, Inc. has been looking for additional ways to bring in more revenue . To help with this, the company has announced that it will be adding additional surcharges for packages sent during peak holiday times this year. This includes packages sent around Black Friday and Christmas.
UPS stock was down slightly as of Noon Tuesday.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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