Posted:
November 2, 2011
The following article ran in the October 28 edition of Telex Times, the online news weekly of the Marine Engineers' Beneficial Association. The article was unsigned, and it contained no direct quotes from MEBA officials, but it was clear enough that the views expressed were those of MEBA President Mike Jewell.
M.E.B.A. PENSION PLAN UPDATE
In an effort to clarify certain information circulating, M.E.B.A. and many of its employer companies met two weeks ago at the regularly scheduled trustees meeting. Today the union and company representatives met in New York to discuss the pension plan.
As you have previously been informed, the defined benefit pension plan surplus funding has been exhausted and this plan will require contributions from employers starting in 2012. The employers are very concerned about the increased costs and the uncertainty of costs with respect to continuing the defined benefit pension plan. The employers have stated that if they are required to remain in the defined benefit pension plan for the remainder of their existing contracts, then they will find alternative business plans that may not include the M.E.B.A.
As we know, some of M.E.B.A.'s contracts cost significantly more than our competitors. In order to retain jobs, the union is discussing freezing the defined benefit plan and the creation of a defined contribution pension plan without increasing the contractual total labor costs. In exchange for agreeing to this change, the union is seeking significant contract extensions and the opportunity to secure new work opportunities. We will be meeting with the employers in the next few weeks in order to address these issues.
We encourage all members to attend the November meeting so you can learn more about the pension plan situation and ask questions directly to your officials.
MEBA President Jewell comes clean on union's pension crisis
The following article ran in the October 28 edition of Telex Times, the online news weekly of the Marine Engineers' Beneficial Association. The article was unsigned, and it contained no direct quotes from MEBA officials, but it was clear enough that the views expressed were those of MEBA President Mike Jewell.
M.E.B.A. PENSION PLAN UPDATE
In an effort to clarify certain information circulating, M.E.B.A. and many of its employer companies met two weeks ago at the regularly scheduled trustees meeting. Today the union and company representatives met in New York to discuss the pension plan.
As you have previously been informed, the defined benefit pension plan surplus funding has been exhausted and this plan will require contributions from employers starting in 2012. The employers are very concerned about the increased costs and the uncertainty of costs with respect to continuing the defined benefit pension plan. The employers have stated that if they are required to remain in the defined benefit pension plan for the remainder of their existing contracts, then they will find alternative business plans that may not include the M.E.B.A.
As we know, some of M.E.B.A.'s contracts cost significantly more than our competitors. In order to retain jobs, the union is discussing freezing the defined benefit plan and the creation of a defined contribution pension plan without increasing the contractual total labor costs. In exchange for agreeing to this change, the union is seeking significant contract extensions and the opportunity to secure new work opportunities. We will be meeting with the employers in the next few weeks in order to address these issues.
We encourage all members to attend the November meeting so you can learn more about the pension plan situation and ask questions directly to your officials.