Schneider threatens division closings A dispute over a Teamsters pension fund may send 123 packing By Ray Barrington News-Chronicle Ashwaubenon-based Schneider National says a dispute over leaving a Teamsters pension fund could mean closing two of its divisions. The company would close its Schneider Tank Lines and Schneider Transport Classic Division by July 1 if a deal is not reached, said Tom Vandenberg, company counsel. Vandenberg said the company does not want to close the divisions, throw the Teamsters union out or put 123 drivers on the street. He also said the Teamsters were not allowing employees to vote on the issue. Employees could vote to drop out of the pension fund, but would have to do so by July 1. Fred Gegare, Teamsters Joint Council 39 president, could not be reached for comment. A staff member at the Teamsters' Green Bay office said he was in meetings regarding the issue. The issue, he said, is the company's liability to the union's Central States Pension Fund, an issue dating back to 1996. At that time, the pension fund kicked out the two units now in danger of closing, and the company had to pay an exit fee of about $7 million. "They were saying we had no new employees in the unit, which did not help them with contributions to the fund," Vandenberg said. "We told the court we weren't the only one that wasn't adding people." Schneider and the affected drivers won a lawsuit ending Schneider's obligation to the fund, and in a settlement Schneider was told it could stay in the fund and leave without a penalty until July 1. Last year, after long bargaining, Schneider said it wanted out. If it leaves, it would have to pay a penalty based on the condition of the pension fund, Vandenberg said. The pension fund has suffered greatly in recent years. Harvey Aitken, a Virginia lawyer who specializes in pension issues, has listed the fund's liability - pensions owed minus money available - at $6.9 billion. Vandenberg wasn't sure of the amount, but "I guarantee $5 billion is not understated." By contrast, the fund was doing much better at the time Schneider had to pay $7 million to leave a few years ago. The company is offering affected drivers a compensation plan that would make up the benefits lost by leaving the pension fund. "Our final offer in collective bargaining includes a company-supported pension program, so it would be a non-event from a financial standpoint," he said. "The ball's in the union's court as to whether the drivers vote." Schneider Tank Lines handles liquid commodities, primarily water-treatment chemicals. The Transport Classic division handles over-the-road hauling with some dedicated accounts, primarily in the Midwest. Schneider has about 50 other Teamsters-represented workers among its more than 10,000 drivers. They would not be affected by the move.