Local 727 Secures Alternative 401(k) Retirement Option for Master Trade Show Industry and Warehouse Contracts

| May 22, 2019

Membership to Vote Between Cash Balance Plan and 401(k) Plan

The Teamsters Local 727 bargaining committee and Trade Show Contractors reconvened negotiations for a Master Trade Show Industry collective bargaining agreement, as well as Freeman warehouse and G.E.S. warehouse agreements on Thursday, May 16.  Local 727 trade show members previously voted to reject the employers’ first offer citing concerns over the terms of the proposed agreement.

The employers’ first five-year contract offer included a large increase in hourly compensation and the preservation of the 2-man crew system, as well as the withdrawal of all Trade Show Contractors from the failing Central States Pension Plan and the introduction of a new hybrid pension plan known as the Teamsters Local 727 Trade Show Division Cash Balance Plan.

Under the proposed Cash Balance Plan, employers would be required to pay $6.50 per hour worked per trade show member and $4.50 per hour worked per warehouse member into the Plan.  These contributions would receive a guaranteed rate of return of 3%.  When a participant is prepared to retire, he or she could then elect to either receive a lump sum payment or to have the Cash Balance Plan purchase a secure lifetime annuity based on the specific amount contributed on behalf of that participant.  Ultimately, each participant will receive the total amount contributed on his or her behalf, plus a minimum of 3%.

Since less than half of eligible trade show industry members voted in the last ratification vote and less than two-thirds of those voting rejected the offer, the International Brotherhood of Teamsters Constitution gives the Union Executive Board the authority to accept the Contractors’ last offer on behalf of the membership.  Despite having this authority, the Local 727 Executive Board chose not to accept the Master Trade Show Industry CBA and instead worked tirelessly to force Trade Show Contractors back to the bargaining table.  Thanks to the efforts of the Local 727 bargaining committee, the Union succeeded in securing an alternative 401(k) retirement plan option.

Under the proposed 401(k) Plan, employers would be required to pay $6.50 per hour worked per trade show member and $5.00 per hour worked per warehouse member into the Plan.  These contributions would not receive a guaranteed rate of return.  A member’s 401(k) could potentially lose money if its investments perform poorly.

For a comparison of the two retirement plan options being offered by Trade Show Contractors, please see the chart below.  This chart is only a summary of the plans’ features.  Each pension plan will be subject to the full terms and standards of the plan’s documents.

*Includes moving the $2.00 vacation fund into the Pension Plan

While both the Teamsters Local 727 Trade Show Division Cash Balance Plan and the proposed 401(k) Plan have their advantages and disadvantages, only one retirement plan can be included in the Master Trade Show Industry CBA, Freeman Warehouse CBA, and G.E.S. Warehouse CBAMembers covered by these three contracts will collectively vote to determine which retirement plan they prefer.  The retirement plan that receives the most votes will be included in Trade Show Employers’ last, best, and final contract offer.

Local 727 has scheduled a Pension Plan Presentation for 5:30 p.m. on Thursday, June 6, at McCormick Place in the East Building, room E350.  At that time, Union representatives will present a comprehensive overview of both retirement plan options and answer all member questions regarding the Teamsters Local 727 Trade Show Division Cash Balance Plan and the newly proposed 401(k) Plan.  Local 727 will then conduct a vote to determine which single retirement plan option will be included in Trade Show Contractors’ final CBA offers.  Individual ratification votes will be scheduled for a later date.  Local 727 will inform all trade show industry members as soon as ratification vote details have been confirmed.

Members with questions should contact Local 727 Business Representative Mike DeGard at (847) 696-7500 or [email protected]

Nothing in this article should be read as the union’s waiver of any legal argument, position or additional grievance, or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law.  The union does not forfeit its right to make any and all supplemental arguments.

Category: TRADE SHOW

Comments are closed.