Our Local 705/UPS contract made gains where others fell short, the fight did not end there, although UPS contractually agreed to the terms and signed the contract with us, they seem to always try to take back. In this case, for instance, the ink on our new contract wasn’t even dry when they tried to raise the retirees’ insurance premiums from $50 to as much as $480 a month. They laughed at us when we told them we’d sue. Of course we did…and won!

            Local 705 acted immediately with a letter to all retirees assuring them the local would do everything in it’s power and without delay assisted the 705 retirees in filing a class action lawsuit against UPS for their singling out 705 retirees in raising their monthly rates. No other retiree in the Country received a notice that their insurance premiums were increasing. UPS claimed they had a verbal agreement with the International not to raise those rates. They made the same agreement with us in negotiations. It was asked at the table if there would be any changes and we were told ‘no changes’.
           

            Attorneys Stephen Rosenblat and Pat Ryan of Baum Sigman Auerbach & Neuman, Ltd., and Jeff Gilbert of Johnson Jones Snelling Gilbert and Davis, P.C. were hired to file the lawsuit in the United States District Court. “We did think we had a good case from the beginning”, said Attorney Steve Rosenblat, “What we could not figure out at the beginning was, what was UPS’s strategy, what were they thinking and relying upon in raising the retiree contribution rates the way they did. We knew we had a good case based on the plain language of the SPD (Summary Plan Description).  The SPD said that costs above $6,250 would be shared equally by collecting additional contributions from all UPS retirees in the Plan.  UPS imposed a higher contribution rate only on the 705 retirees”. 
 

            The Judge agreed. In a swift decision, the Court found in favor of the 705 retirees; UPS violated the SPD by collecting additional contributions from Local 705 Retirees only, even though everyone’s costs were above $6,250.  The ruling stated the defendants’ interpretation of “shared equally” contradicts the plain language of the Plan and is therefore arbitrary and capricious.

            UPS appealed and in the United States Court of Appeals they received this ruling; Local 705 retirees have a right to rely on the language, which unambiguously states that UPS must, if it collects additional contributions, collect them from all IBT retirees.  UPS was ordered to credit monies to the retirees along with 5% interest; they were responsible for all court costs and all attorneys’ fees.

            Secretary Treasurer, Steve Pocztowski received dozens of thank you letters from 705’s retirees. Iggy Green, a retired feeder driver from Northbrook said, “I want Steve to know how much we appreciate everything he did, not everyone would have gone above and beyond for us like Steve did”.