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Dear Member: With this Final Bargaining Report, you have a summary of the agreement negotiated by CWA and the IBEW with AT&T. From our first days of employment with AT&T, everything we have ever learned about CWA and its’ members can be summed up in just three words: UNITED WE STAND
CWA-AT&T FINAL BARGAINING REPORT 2005 These words describe, better than any other, the driving force of the labor movement – the commitment of our members throughout CWA and the entire labor movement across the Globe to build a better life for ourselves and our families by taking a stand, and by taking that stand together. With a global move by corporations to shift healthcare costs to employees and retirees, increased outsourcing and subcontracting of good union jobs, the goal of the bargainers was to maintain healthcare protections and more importantly achieve a level of job security for all our members across the collective bargaining agreement. With that in mind, this new collective bargaining agreement calls for protections in healthcare without premiums, for both actives and retirees, contract language that will bring back subcontracted jobs into the bargaining unit, a general wage increase of 11.19% over three years, a pension band increase of 6% in 2006 and 5% in 2008 and an employment security agreement that guarantees a job offer to anyone declared surplus. If you are surplus and no job offer is made you cannot be laid-off. In addition, there were a number of additional improvements in contract language as outlined in the summary below. The company came into this round of bargaining determined to push retrogression into every area of the contract. The resolve of the bargaining committee was strong and our focus was clear. The resolve of the whole CWA and the fact that over 90,000 members throughout AT&T Inc. would support us had a huge impact. The resolve of you, our members, was as strong as ever. UNITED WE STOOD As a result of this commitment, your Bargaining Committee is pleased to report that this agreement achieves the objectives set by the CWA’s rank-and-file Bargaining Council and the CWA Executive Board and unanimously recommends ratification of this agreement. In Unity, The National Bargaining Team Ralph Maly, Vice President, Chair Jerry Klimm, Assistant to Vice President David Blackburn, CWA Local 7050 Bill Bates, CWA Representative Bridget Dick, CWA Local 13500 Martha Flagge, CWA Representative Larry Ihfe, CWA Local 6150 Lois Grimes, CWA Representative Mary Ellen Mazzeo, CWA Local 1152 Ruth Marriott, CWA Representative LaNell Piercy, CWA Local 4252 Gerald Souder, CWA Representative Laura Unger, CWA Local 1150 - 2 - Details of the 2005 AT&T/CWA/IBEW Tentative Agreement Duration Expires on April 4, 2009 Wages The following wage increases are at the Maximum Rate; 0% at the minimum with progression steps computed on an exponential basis. (See table below for examples) December 11, 2005 3.0% December 10, 2006 3.0% December 9, 2007 2.5% December 7, 2008 2.25% Pensions The Traditional Pension Bands will increase 6% in January 2006 and 5% in 2008. Cash Balance Bands will increase by 6% in January 2006 and 5% in 2008. Cash Balance Interest Credits: Effective January 1, 2006, for the duration of the agreement the interest crediting rates applicable to the Cash Balance Accounts will be 4%. Job Security • An agreement that, prior to an employee being laid off, the Company must offer a position within AT&T Inc. If a job is not offered, the employee cannot be laid off. • A successorship clause: If the company sells a portion of the business that involves the transfer of bargaining unit members the buyer MUST agree to enter into negotiations with the Union to either accept the current agreement or a substitute agreement with economic conditions no less favorable than our current agreement. • Classic Services: An agreement to bring a portion of our consumer work back from the Philippines to our CWA represented locations. • Approximately 200 Term positions will be made permanent in the CNSCs AND there is a new letter prohibiting use of term employees for permanent assignments (30 days after ratification.) • Network Operations: No later than January 30 and quarterly going forward we will review contracted work. If the review indicates the work is full time, the position will be brought back into the bargaining unit within AT&T Inc. • Network Operations: Process to return work that was contracted out in the Network and E.F.I back into bargaining unit jobs. • Network Operations: The Company will not add a contractor in the same geographical area doing essentially the same function for minimum of 4 months after a VTP offer. • Network Operations: The Article 43 Watermark was extended (see Article 43) • By March 31, 2006 the Company and Unions will meet to discuss integration and consolidation of work across AT&T Inc. Bargaining Units. • Business Enterprise World Wide Customer Service: Management Release Group (St. Louis, MO), minimum of 3, maximum of 6 contracted positions will be moved back into the bargaining unit. (30 to 90 days). • Business Enterprise World Wide Customer Service: The Company and Union will meet and negotiate up to 85 billing jobs that are currently contracted out in the US and overseas. • Business Enterprise Worldwide Customer Service and Business Enterprise Sales and Service units: The Company will not add a contractor to perform functions previously performed by the individual for a minimum of 6 months after a VTP offer. • Business Enterprise Worldwide Customer Service: 1) 5 TG5 positions will be staffed in New Jersey to do revenue shortfall work currently outsourced. 2) 3 TG6 positions will be staffed in Oakton, VA to perform the review tracking function which is currently outsourced. • Card check across all Appendix 3 Business Units Plus ATTSCO, GCI and Local Services. • Mandatory mediation process on Grievances Claiming Management doing Bargaining Unit work. This covers both badged and non-badged managers. The Barnes Process will also continue. • Continuation of Sub-Contracting Committee plus the pre-existing President’s Council will be expanded to include the CWA C&T Vice President and AT&T Corp Labor Relations VP to discuss emerging technologies, access work, etc. • Labor Advisory Forum will be created. It will meet quarterly and include a number of Local Presidents, CWA Staff, and key management to address Union/Management issues, including but not limited to contracting out, job growth and other issues. - 4 - Active and Retired Employee, Medical Benefits There will be no changes to the Retiree or Active Medical and Prescription Drug plans in 2006. While AT&T will continue to pay for Retiree healthcare, Retirees will no longer see the HCRA-R debits and credits on their pension checks. Retiree and Active Medical Plan changes effective 1/1/07 Point-of-Service Plan Deductibles In-Network Out-of-Network No deductibles $470 Individual $940 Individual + 1 $1,410 Individual plus 2 or more No changes were made to the Traditional Indemnity Plan Deductibles Co-payments and Co-Insurance Amounts: In-Network Out-of-Network Physicians Office Visit $20 20% Major Medical/Physicians Svcs. $0 20% Emergency Room (non-admit) $75 $75 Per Hospital Admission $200 $200 Out of Pocket Maximum Amounts In-Network & Traditional Indemnity Out-of-Network Individual $1,000 $2,500 Family Maximum $3,000 $5,000 There will be no change to lifetime maximum limit of $1 million under the plans for in-network expenses. The out-of-network lifetime maximum has been reduced to $500,000. Prescription Plan Changes effective 1/1/07 Deductibles: Retail Mail Order $50 $0 Co-payments: Retail (30 Day Supply) Mail Order (90 Day Supply) Generic $10 Generic $20 Formulary Brand $20 Formulary Brand $40 Non-Formulary Brand $40 Non-Formulary Brand $80 For Out-of-Network retail prescriptions, you will pay the greater of the applicable network retail co-payment or the balance remaining after the plan pays 75% of the network retail cost of the prescription drug. - 5 - Cost Differential Appeal Process – The Company shall establish an appeal process for those who purchase a prescription at an out-of-network retail pharmacy in an emergency situation when a network retail pharmacy is not available. Out of Pocket Maximum Amounts Individual Family Maximum $1,000 $3,000 Mandatory Mail Order – Maintenance medications will be limited to an initial 30 day supply with two 30 day refills at a retail pharmacy after which all subsequent refills must be made by Mail Order or no reimbursement will be made. Mail Order will be limited to a 90 day supply for each prescription or refill. Mandatory Generic Program – If a Generic medication is available and you elect to fill the prescription with a name brand medication, you will pay the difference in costs between a name brand medication and the generic medication. If you cannot take the generic medication for medical reasons, you may file an appeal under the current appeals process. If the appeal is upheld, you will pay the normal co-payment for the name brand medication. Other National Provisions • Alliance will be funded for $10 million a year. $1000 limit of the $2500 FAD funds for “equipment, tools, and supplies” (computers). • AT&T/CWA/IBEW Scholarships - 28 scholarships be funded at $6,500. • Family Care Development Fund funded at $500,000 a year. • APA: Minimum payout is $425, increased from $400; $750 at 100% of target, increased from $680. Changes in the Contract Articles Article 5 – Union Representation • Letter added for a trial on Union representation during Peformance Improvement Plan discussions with management. Article 9 – Grievance Procedure • Added language for faxes to be used at the 3rd step and a trial for use of faxes, with Local agreement, at the first and second step. Article 16 – Transfers, Travel Allowances and Moving Expenses • Relocation Pay was increased to a minimum of $7000 and maximum of $13,000 for purposes of ATS and those covered in Articles 16 and 24. - 6 - Article 20 - Absence • The company clarified that step-parents, step-grandparents, step-children, step-brothers and step-sisters are covered under (1) under the death or funeral language. Article 21 – Excused Work Days • EW Days can be taken in one-hour increments if there is a Local agreement, negotiated annually. Article 22 - Vacations • Vacation days can be used in half-days (selected after the vacation pick) if there is a Local agreement, negotiated annually. Article 24 – Force Adjustment – Layoff, Part-Timing, and Recall • Relocation Pay was increased to a minimum of $7000 (for those who had previously been covered by the minimum) and maximum of $13,000. Article 31 – Employees in Military Service or Active Duty for Training • Union notification two days in advance when the Company extends Military Payment schedule. Article 34 – AT&T Labs - Support • The termination schedule is now the same as Article 25. Article 35 - Sales • Employees in the CSSS-C title (Reynoldsburg, Ohio) will be moved to the CSSS title. If the company changes business strategy and determines that the CSSS-C title should be re-populated, the employees in Reynoldsburg, Ohio will be offered the CSSS-C position in seniority order. If there are not enough volunteers the positions will be filled in inverse order of seniority. • Employees in the CSSS title in Indianapolis, Mesa, and Reynoldsburg will be grandfathered for the CSSS-C “Sales Simulation” Test. • Negotiations regarding a sales related incentive plan for the CSSS title in AT&T Classic Services will resume within 60 days. • The Metro Segments Compensation Plan was modified to delete elements no longer applicable. The modified Plan will be used as a baseline document if the CSSS-C title is repopulated. Article 39 – Information Services • A day was added to paid funeral leave. • $10.00 a week evening and night differential added. • Improvement in termination pay 7 years but less than 8 is 10 weeks; 8 years and above is now 12 weeks. Article 41 – Communications Services • The language covering managers doing tech work was changed to remove any references to “outside of their assigned tours”. - 7 - Article 43 - • The language covering managers doing tech work was changed to remove any references to “outside of their assigned tours”. • IDC(G) and NTS(G) continue all of their grandfathered Article 41 language plus shifted tour differential was added. • Watermark: 2006 – 1000; 2007 and 2008 – 900; 2009 – 800. • Variable Workforce: No later than January 30 and quarterly going forward we will review contracted work. If the review indicates the work is full time, the position will be brought back into the bargaining unit within AT&T Inc. Article 44 – (Previously CNSC Addendum) • All term employee positions will be converted to regular full time positions. • An additional wage increase of .5% the first year at all levels of the wage progression. • The CNSC rolled into the regular contract. Not all, but most of the “white pages” will apply to members in the CNSC. • Double time for overtime after 8 hours. • Improvement in the termination pay schedule: 20 years but less than 30, improved to 50 weeks pay; 30 years and above, improved to 60 weeks pay. • Part time employees, now covered under Article 18, will receive overtime payments. • Improvement in some temporary transfer language • Arbitration rights after 9 months instead of 12month. Article 45 – (Previously LNS Mesa, AZ and Orlando, FL Agreements) • Moved into the core Contract with Orlando language and Pension band improvement for Mesa, AZ. • Layoff language notification improved from 45 days to 60 days. • Recall increased from 2 to 3 years • Layoff groups changed from 3 groups to 2 groups Letter AA – Level Equalization Groups • These titles were moved from LEGS Group 2 up to LEGS Group 3: Account Representative, Bilingual Billing Clerk, Billing Clerk, Credit Representative, Relay Administrative Associate, Security Reports Clerk, Senior Bill Processing Clerk, Senior Office Clerk, Special Billing Clerk. Appendix 3 – AT&T Business Operating Units and Divisions • The following Business Units: Corporate Affairs, Supplier Management and Finance Business, will be considered a single Organization for all purposes under the Contract. |
