Verizon CWA and IBEW Labor Talks August 15

The Federal Mediation and Conciliation Service (FMCS) issued the following statement on Wednesday evening on the status of negotiations between Verizon, CWA and IBEW. Under the agreement for mediation, all parties must continue to refrain from any public comment on the status of the talks while mediation is in progress. Further updates will be provided when appropriate.

Statement by FMCS Director George H. Cohen On Verizon-CWA-IBEW Labor Talks

WASHINGTON, D.C. — As of this date, the parties now have been engaged in intensive negotiations for three weeks under the auspices of myself and Director of Mediation Services John Pinto. As previously reported, progress continues to be made, but, again, a number of core issues remain to be resolved. Pursuant to the mediators’ recommendation, the parties have agreed to continue their negotiations until concluded.

Federal Mediation Update August 10

Verizon Local Presidents / CWA Regional Bargaining Committee and IBEW Bargaining Committee

WE have agreed to an extension of bargaining with the Federal Mediator. The previous extension was to conclude at the close of business on Friday, August 10, 2012 (today). This extension has been rescheduled to conclude by the close of business on Wednesday August 15, 2012.

Mediator Statement: CWA/IBEW Labor Talks To Continue

Statement by FMCS Director George H. Cohen
August 9, 2012

On Verizon CWA-IBEW Labor Talks

WASHINGTON, D.C. — As of this date, the parties have been engaged in intensive negotiations for two weeks under the auspices of myself and Director of Mediation Services John Pinto.

The negotiations continue to be constructive and progress continues to be made, but, again, a number of core issues remain to be resolved. Pursuant to the mediators’ recommendation, the parties have agreed to continue their negotiations until concluded.

FMCS Statement on Verizon-CWA-IBEW Labor Talks

Bargaining News

The Federal Mediation and Conciliation Service issued the following statement today on the status of negotiations between Verizon, CWA and IBEW. Under the agreement for mediation, all parties are to refrain from any public comment on the status of the talks while mediation is in progress. Further updates will be provided when appropriate.

Statement by FMCS Director George H. Cohen On Verizon-CWA-IBEW Labor Talks

WASHINGTON, D.C. — For the past ten days, the parties have been engaged in continuous negotiations under the auspices of myself and Director of Mediation Services John Pinto. The negotiations have been constructive and progress has been made, but significant key issues remain to be resolved. Negotiations will resume on Monday, August 6, at our offices.

Regional Bargaining Report # 61

Thursday, August 2, 2012

Bargaining continues in Washington DC at the Federal Mediation Conciliation Service. CWA, IBEW and Verizon have agreed to Guidelines which includes that no information can be released by either party concerning the progress of these negotiations. Verizon had insisted that there would be a deadline set of Friday August 3, 2012.

Since last Wednesday July 25th, the CWA District 1/IBEW Local 2213 and IBEW New England and the CWA District 2-13 and IBEW Local 827 have been meeting with the Chairman of the FMCS. Because of the agreed upon blackout, there is no news of progress on non-progress to report.

The Company is still not hearing us so it is more important than ever that we take this fight to a new level. The next couple of days we MUST let management know that we want a fair contract. Our members must continue to mobilize. Every member needs to commit to spending some time in the next few days participating in mobilization activities. Every member MUST call their steward or their Local and ask how they can help. It’s time to show the company that we have 100% of the membership ready to do whatever it takes to get a fair contract.

On Saturday, August 11, 2012 Americans from all over the country will be in Philadelphia, for the “Workers Stand for America Rally” to stand up for the middle class and urge all Americans, especially our elected officials, to stand with us. It is time for every member to stand up and be counted. Contact your Local for information on transportation to the rally.

If you have not been involved it is time to get involved TODAY.

Call your Local or talk to your steward and find out what you can do today to help TODAY.

IT IS TIME TO GET ANGRY

TODAY IT IS TIME TO GET INVOLVED

TODAY IT’S TIME TO FIGHT BACK 

Mobilize! – Mobilize! – Mobilize!

Regional Bargaining Report # 60

Tuesday, July 24, 2012

On July 19, 2012, CWA and IBEW requested the assistance of the Federal Mediation and Conciliation Service in our contract negotiations with Verizon.

The Company first refused the Union’s request for Mediation but we have been notified that the Company has agreed to Mediation and we are scheduled to meet with the Federal Mediator on Wednesday in Washington DC

At this point, it appears that this enormously profitable company—which made nearly $22 billion in profits over the last five years and paid its top five executives nearly $350 million during that time— is determined to destroy your benefits and destroy the middle class jobs that CWA and IBEW have fought so hard to create over 50 years.

After negotiating for over one year we are still far apart on many of the issues involved in these negotiations.  Here is a list of the many items the company has proposed in order to lower our standard of living.

1. Wages

  • 2011 – 0%
  • 2012 – 1.75%
  • 2013 – 1.50%

The Company has offered 0% wages for the first year. You read that right- 0% – the company has no money on the table for wage increases for their employees for the first year of the contract. The company did make a proposal that would give 1.75% in the second year and 1.5% for the third year but the 1.75% for the 2nd year would not go into effect until the first Sunday after ratification of the 2012 MOU. The company is making it clear that they will not pay any retroactive wages to our members.

2. Health Care Benefits

This is not only about premiums. The company’s proposal would diminish the benefit plans we enjoy today and we would be paying more for everything we use. The Company’s plan is for you to pay more when you need these benefits. Verizon hopes that if you have to pay more for your benefits, then you will not use them.

Premiums The Company proposed Premium Contributions for all medical plans (HCN – Health Care Network, MEP HC PPO – Medical Expense Plan, and HMO – Health Maintenance Organization.)  Today there are no contributions for any plan.

These are the premiums that the company proposed for each of the plans

MEP HCN HMOs and Other Plans
Employee $390 $520 $740
Employee + 1 $900 $1230 $1,820
Employee + Family $1380 $1900 $2,850
On and after 1/1/2013 Premiums increase 6% each year

That’s right; they want to increase your premiums each year by 6%

Tobacco users would add $600 to the annual premiums.  Family coverage would require that everyone covered did not use tobacco products in order to qualify for the lower premium.

Deductibles and Out of Pocket Maximums

Today our Deductible in the MEP Plan is $250 for individual and 2.5 x individual for family

In the HCN plan the deductible is $0 in network and $250 in the out of network

Today our Out of Pocket in the MEP is $700 for in and out of the network and for the family : the maximums are per individual per year; combined family max is not applicable

For the HCN Plan – the OOP Max is none in-network and $1500 out of network and for the family: the maximums are per individual per year; combined family max is not applicable

Here is what the company has on the table now for Deductibles

and Out of Pocket Maximums

Plan Design MEP HCN
In Network Out Network In Network Out of Network
Annual Deductible
Individual 2013: $6502014: $700 2013: $8002014: $850 2013: None2014: None 2013: $8502014: $850
Family 2013: $19502014: $2100 2013: $24002014: $2550 2013: None2014: None 2013: $25502014: $2550
Out Of Pocket Max
Individual $1700 $2000 $1,000 $2000
Family Maximums are per individual per year: combined family max is not applicable $3,000 $6000

Co-Insurance

MEP PPO

Today there is no coinsurance for most services for in network use – the company proposes co- insurance of 90%.  This means the member pays 10% of the charge for the service.

Today the following services are covered in network at 100%.  The Company proposes these services be covered at 90% and the member pay 10% of the cost.

  • Radiation Therapy
  • Chemotherapy
  • Hospital Room and Board
  • In Hospital Physician Visits
  • In Hospital X-ray and Lab Tests
  • Newborn Baby Care
  • Birthing Centers
  • In Patient Surgery / Out Patient Surgery
  • Anesthesia Services
  • In Patient Substance Abuse
  • Ambulance Services
  • Today a physician office visit is $15 – the company proposes $20.
  • Today X-Rays are paid at 100% – the company proposes $20 co-pays
  • Today Maternity care is paid at 100% – the company proposes $20 co-pays
  • Today Second opinions are paid at 100% – the company proposes $20 co-pays
  • Today Urgent Care is a $15 co-pay – the company proposes a $80 co-pay
  • Today Emergency Care is a $15 co-pay and $5 co-pay for Medicare eligible – the company proposes $170 co-pay and $85 co-pay for Medicare eligible

Today Out of Network services under the MEP are mostly at 100% with a few at 98% and a couple at 80% – the company proposes to make the co-insurance 70%, so you will pay 30% for any out of network services.

Prescription Drugs

Today there is no deductible for prescription drugs – the company proposes a $25 deductible for every individual in your family. So you would have to lay out the first $25 for each member of your family and then your prescription benefit would kick in.

Today there is a $400 annual out of pocket maximum for each member of your family. So no matter how much your prescription bills are for the year, you would not have to pay any more than $400 for each member of your family. The company wants to eliminate this benefit.

The company also proposed significant increases in co-pays for prescription drugs both retail and mail order. So, now you will get to the $400 amount faster but since the company has proposed to eliminate the out of pocket maximum, you will continue to pay for all of your prescriptions.

Dental

In addition to the Medial Premium the company has proposed an annual contribution for the Dental Plan.  An individual, non-tobacco user, annual premium would be $36 and family non-tobacco users premium would be $108. A tobacco user would add $60 to both amounts.

The Company has also proposed that retirees pay annual premiums for coverage and additional costs for services as well.

3. Pensions – there is no increase to your pension and the company proposes to:

  • Cut pension accruals in half. For anyone currently on the payroll your pension will be capped at 30years. Beginning November 1, 2012, your pension plan will only accrue at 70 %.
  • Eliminate the Pension Lump Sum option.
  • Modify the 401(k) Plan
  • Eliminate the Sickness Death Benefit

For those currently on the payroll, after November 1, 2012 your current pension benefit will be frozen and from that point forward you will only earn 70% of the current pension band value until you reach 30 years of service.  After 30 years of service you will no longer accrue time towards your pension.  If you currently have 30 or more years of service, your pension will be frozen on November 1, 2012 and no longer accrue time toward your pension.

Anyone hired or rehired on or after August 1, 2012 (“Pension New Hire”) will not be eligible to participate in the Pension Plan.

The Pension Lump Sum program will terminate.

4. Eliminate Job Security:

  • Eliminate the Job Security Provisions for all employees.
  • Eliminate the Movement of Work Protection
  • Increase the mileage on the 35 mile transfer provision
  • Eliminate provisions in Force Adjustment Plan
  • Eliminate New Contracting Initiatives agreement – which would allow them to increase the level of contracting

By eliminating the Job Security Provisions in the contract, members hired before August 3, 2003 will not be covered by the no-layoff, forced transfer and loss of compensation commitments that was contained in the Job Security Letter

By eliminating or modifying the movement of work protection, the company will have the opportunity to move more of our work to other areas of the country. If this is allowed and without the protection of the Job Security Letter, more of our members will be laid off.

By eliminating the “new Contracting Initiatives Agreement” – the company will be able to increase the level of contracting and without the protection of the Job Security Letter, more of our members will be laid off.

By increasing the mileage in the 35 miles provision of the contract, the company would be able to close more garages, close more offices and transfer more employees longer distances then they are allowed today.

By eliminating provisions in the Force Adjustment Plan (FAP), the company will be able to declare more surpluses and without the protection of the FAP more of our members will be laid off.

5. Absence

  • Maximum of six (6) paid incidental absence days per year.  New hires receive a maximum of five (5) incidental absence days per year.

Company still wants the ability to administer the Absence Control Plan with this limited amount of paid incidental absence.

6. Next Step Program

  • The Company wants to eliminate the Next Step Program

7.  Excused Work Days (EWD)

  • Eliminate the ability to take EWD’s on short notice

8. Sharing of Calls

  • The company wants the ability to implement and expand upon sales and service call routing capabilities for the routine transfer and/or routing of calls between centers performing like sales and service call functions on a next available representative, balanced load or any other determined by the company. Accordingly, calls may be transferred and routed between and among centers in NY/NE, the former GTE areas and any other locations that are not a center staffed by employees of the 2012 South MOU Companies.
  • The company wants no limitations, geographic or otherwise, on the Companies’ right to share calls and work between and among CSSCs, BSBCs, MSSCs and VCCD and individuals working at home, and contractor locations that perform like functions, except the Companies may not transfer or route calls between and among centers staffed by employees of the 2012 South MOU companies.
  • Additionally, there will be no limitations, geographically or otherwise, on the Companies right to share calls and work between and among the following Centers and individuals working at Home, and contractor locations (to the extent not staffed by employees of the 2012 South MOU companies) that perform like functions CFS-MMCC, OCO, MCO-HIS, DRC,NAC, TPM and APC.

We are working on percentage of calls that can be shared and Verizon still demands their call sharing proposal with their percentages of calls that can be shared.

The Company has withdrawn the portion of the proposal that would give us more protection in our EVRCs and FSC because we did not accept their proposal with their percentages on Call Sharing.

  • In addition, the company may require representatives in any CSSC, BSBC, MSSC, VCCD,  FSC, or EVRC to handle customer inquiries and request that can be resolved with the aid of written or electronic instructions or guides if such inquiry or request is either part of a misrouted or a secondary request or inquiry that is part of a properly routed call.

9. Sales Compensation Plan Titles

The Company has proposed two new sales job titles with variable compensation:

  • Customer Contact Sales Associate (“CCSA”)
  • Business Sales Associate (“BSA”)

Paid at Seventy (70%) percent of the Service Representative and Representative titles pay rate with the remaining thirty (30%) percent to be made up by commission sales.

The Company does not want to negotiate the 30% Commission portion with the Union – they want us to trust them that they will do the right thing. They also do not want the commission plan to be subjected to a challenge in the grievance and arbitration section of the contract. Again the Company wants us to trust them. Now, what do you think – should we trust them that they will do the right thing

  • These titles do not receive the Corporate Profit Sharing Award.
  • The Company wants the ability to change the terms of the commission plan as they see fit and again – we must trust them on the terms of the plan

We need Verizon to hear us at the Bargaining Table

We have made meaningful proposals on wages, on changes to our healthcare plans, absence, medical, job security, call sharing, just to name a few.  Yet, the Company has rejected every one of our proposals saying they don’t go far enough to meet their needs.  At the same time, almost every proposal the Union has placed on the table has been rejected by the Company.  Bargaining will continue in Washington DC on Wednesday with the Federal Mediator.  In the meantime, we need every member to get engaged.

Verizon is doing more than its part to destroy middle class jobs in this country.  The Company is still not hearing us so it is more important than ever that we take this fight to a new level. Our members must continue to mobilize. Every member needs to commit to spending 4 hours per week participating in mobilization activities.

On Saturday, August 11, 2012 Americans from all over the country will be in Philadelphia,  for the “Workers Stand for America Rally” to stand up for the middle class and urge all Americans, especially our elected officials, to stand with us.  It is time for every member to stand up and be counted.  Contact your Local for information on transportation to the rally.

If you have not been involved it is time to get involved.

Call your Local and find out what you can do today to help.

IT IS TIME TO GET ANGRY! IT IS TIME TO GET INVOLVED!

IT’S TIME TO FIGHT BACK!

Mobilize! – Mobilize! – Mobilize!

Verizon Rejects Mediation Offer

Updated: Unions Seek Federal Mediation In Verizon Contract Talks

CWA, IBEW Request Intervention in Negotiations With Telco; Verizon Rejects Mediation Offer

Rally at Pearl Street 7-18-2011. Click on photo to view album.

By Todd Spangler- Multichannel News
7/19/2012

Verizon said that senior vice president of labor relations Lawrence Marcus sent a response Thursday to the CWA’s Shelton that said the company “declines your request to proceed to mediation.”

“As the negotiations reach a key juncture after 13 months of bargaining, we don’t need another ‘process’ which will inevitably result in further delay — we need the unions to address the full range of issues on the table instead of engaging in delaying tactics to avoid making the tough decisions,” Marcus wrote, according to Verizon.

The unions pointed out that Verizon has generated more than $16.3 billion in profits over the past four years and that its board of directors approved a 200% increase in compensation for CEO Lowell McAdam to $23.1 million per year.

On a call Thursday with investors discussing Verizon’s second-quarter earnings, chief financial officer Fran Shammo said, “When we entered into these negotiations, we knew that this was going to be extremely difficult and very hard negotiations, and it was going to be a long haul not a short haul.”

Read the full story.

Verizon is laying the groundwork to abandon its rural phone network.

Verizon CEO Ponders Killing Off Rural Phone/Broadband Service & Rake In Wireless Profits

Lowell McAdam Verizon CEO spoke on a wide-ranging number of topics for the benefit of Wall Street investors at the Guggenheim Securities Symposium.  Transcript of the event

Union Hall Call, July 19, 2012

Listen to the audio archive of CWA’s July 19 Union Hall Call. Speakers were: Lou Greico from the Dayton Newspaper Guild; Abdur Bilal, a worker from Piedmont Airlines; Jerry Carney from IUE-CWA Local 83761; Jennifer Travis, a fired Verizon Worker; CWA President Cohen.

Download The Audio File

CWA, IBEW REQUEST FEDERAL MEDIATION IN CONTRACT TALKS WITH VERIZON

ConEd Rally in Union Square. 7-17-2012. Click on the photo to view album.

Unions Seek Independent Third Party After Verizon Negotiations Drag On For Over a Year

Washington, DC – In response to the unwillingness of Verizon to bargain a fair contract for workers, the Communications Workers of America (CWA) today filed a request for mediation with the Federal Mediation and Conciliation Services (FMCS). CWA made the request with the International Brotherhood of Electrical Workers (IBEW); the two unions represent approximately 45,000 workers at Verizon locations from New England to Virginia.
CWA and IBEW workers have been unable to negotiate a fair contract for over a year as Verizon executives continue to insist on drastic cuts in compensation for workers. At the same time the company has made more than $16.3 billion in profits over the past four years and given its top five executives close to $300 million.

“This delay in reaching a fair agreement is not only bad for workers – it’s bad for consumers and bad for our communities,” said Chris Shelton, Vice President of CWA District 1 and Myles Calvey, Chairman of IBEW System Council 6. Added Ed Mooney, Vice President of CWA Districts 2-13 and Bill Huber, President of IBEW Local 827, “For the past year we have been flexible and shown a willingness to negotiate but the company continues to play games with workers’ health care, retirement security, and job security.”

Verizon is a $100 billion company and recently its Board of Directors approved a 200 percent increase in compensation for the CEO, to $23.1 million. In spite of its billions in profits the company continues to make demands which would gut workers’ job security and pension security, drastically increase health care costs, and fail to bring back thousands of jobs which the company has subcontracted and off-shored.

From coast to coast, working families, unions, students, faith leaders, progressive groups, civil rights and community organizations and many more are standing up to Verizon and its greed. In addition to signing a petition to Verizon’s CEO, allies have participated in actions at Verizon locations and consumers are urging Verizon to do the right thing.

According to a story in Channel Partners by Josh Long.

Verizon must be willing to bring in a federal mediator.

“Both parties must agree to mediation,” John Arnold, a spokesman for the FMCS, said in a phone interview.

Mediation could help.

A federal mediator seeks to assist two sides in reaching an agreement in contract negotiations, but unlike a federal judge or arbitrator, mediation is not a binding process. Under the Labor-Management Act of 1947, the Federal Mediation and Conciliation Services provides free mediation services in contract disputes between employees and the employees who are represented by a union, according to the FMCS’ website.

“The goal of mediation is to assist the parties in reaching a mutually acceptable agreement,” Arnold said. “We’re there to assist the parties. The FMCS has a pretty good track record.

“We help the parties reach a settlement in about 85 percent of the cases that we mediate,” Arnold said.
Read the full story.

Regional Bargaining Report # 59

Monday, July 2, 2012, 8 AM

For the past few weeks, the CWA District 1/IBEW Local 2213 and IBEW New England Regional Committee and the CWA District 2-13/ IBEW Mid Atlantic Regional Committee met with the Company together on the issues of Job Security and Call Sharing.

Friday, June 22nd marked the one year anniversary of trying to reach a fair agreement with Verizon Communications in both the New York/New England and the Mid-Atlantic regions.  From that day to this, Verizon has come to the bargaining table with an agenda of givebacks.  Verizon claims it needs changes in our contracts in order to make the business more competitive.  They have attacked nearly every provision of our contracts, with many items having nothing to do with competitiveness.  Your New York/ New England and Mid-Atlantic CWA/IBEW Union Bargaining Committees have worked tirelessly trying to understand the Company needs while continuing to protect our members’ standard of living.  We have made proposals addressing those needs while receiving nothing substantial in return from the Company.  It seems no matter how far we go in our proposals to address their issues, it’s never enough.

Many of our members received a communication from Verizon EVP Marc Reed giving the Company spin on where we are in negotiations.  In one statement he says, “…the company made a proposal in mid-May to continue to provide job security for the more than 38,000 associates who currently have those protections in exchange for the unions agreeing to greater work-rule flexibility.”  Among the items of “flexibility” he is speaking of is the Company’s ability to force transfer you any time they want, so far from your current work location that you would have to choose between your job and your family.

He makes the Company proposal on Healthcare cost shifting sound so reasonable that you might ask yourself, “What are we waiting for? Where do I sign?”  After all, it’s only, “… contributions can be as little as about $24 a month for individuals and $107 for a family. (This is not the proposal in the NY/NE  or in Mid Atlantic it is slightly higher than that in both areas ).

Anyway, he neglects to tell you the rest of the story. The company is also seeking additional cost-sharing measures, as they relate to office visit co-pays, deductibles and co-insurance, emergency room visits…”.   What he doesn’t tell you is that those same contributions can be as much as $116 a month for individuals and $307 a month for families.  And if you’re a Pre-Medicare retiree the costs can be as high as $108 per month for an individual and $298 a month for families.

What Marc Reed didn’t tell you is that this is the contributions for 2012. Beginning in 2013, for each Plan year beginning after January 1, 2013, the Annual Employee Contributions for such plan year will increase by 6% over the previous year. These are the costs if you never use your healthcare.  If you happen to be among the thousands of our members who have the nerve to actually use your benefits, the cost increases in the form of co-pays, deductibles and co-insurance could run you into thousands more each year.

Another thing, Marc Reed didn’t tell you, it that there will be no wage increase for the first year of the contract 2011.

Another thing Mr. Reed pointedly didn’t tell you about is how the Company has on the table a diminished benefit for every new hire.  This two-tier system is included in almost every Company proposal.  Your Union Bargaining teams are not fooled by this approach.  We know that two-tier benefits is the road that leads to certain disaster for every current and future member.

Marc Reed also did not tell you that the company wants a new title with 30% of the wages based on commissions. The company does not want to negotiate with the Union on how our members would make that 30%. The Company wants us to trust them that they will make sure that they do the right thing so that our members can make that targeted salary. Now, what do you think – should your bargaining committee – TRUST this company to do the right thing.

We have made meaningful proposals on changes to our healthcare plans, absence, medical, job security, call sharing, just to name a few.  Yet, the Company has rejected every one of our proposals saying they don’t go far enough to meet their needs.  At the same time, almost every proposal the Union has placed on the table has been rejected by the Company.  Bargaining has recessed for the July 4th Holiday.  We look forward to returning to the Bargaining table after the break.  In the meantime, we need every member out there to get engaged.

Verizon is doing more than its part to destroy middle class jobs in this country.  The Company is still not hearing us so it is more important than ever that we take this fight to a new level. Our members must continue to mobilize. Every member needs to commit to spending 4 hours per week participating in mobilization activities.

If you have not been involved it is time to get involved.

Call your Local and find out what you can do today to help.

IT IS TIME TO GET ANGRY! IT IS TIME TO GET INVOLVED!

IT’S TIME TO FIGHT BACK!

Mobilize! – Mobilize! – Mobilize!

One Year Later, Major Bargaining Issues Remain Unresolved

Rally at Pearl Street. Click on the photo to view album.

Marc Reed, executive vice president of human resources and administration, today provided the following status report on bargaining with the CWA and IBEW for new labor agreements for East associates:

As you know, it’s now been one year since we began contract negotiations with the CWA and IBEW. It is disappointing that we haven’t yet reached a settlement that is acceptable to both sides.

I want to summarize where we are.

Our objective today – as it has been for the last year – is to reach a contract settlement that continues to provide our associates with good, well-compensated jobs in a financially healthy company. To do so, we need to adapt to the economic and technological forces that are transforming every business in America. We all know the pressures. Health care costs continue to rise at a rapid rate. Competition has eroded our traditional access line business by approximately 50 percent in the past 10 years. Operating income in Wireline is barely at break-even levels, despite billions of dollars of investment in FiOS.

No business or business unit of a company can sustain itself indefinitely if it doesn’t generate the profits to fund its growth and return money to its shareowners. Some companies, like General Motors, acted too late to save themselves without radical and painful changes. Fortunately, we still have the chance to make the meaningful changes now that can preserve Wireline’s financial viability.

Some of the key areas being discussed include job security, benefits, absence and work rules.

Job security and work rules. Recognizing our employees’ concerns about job security, the company made a proposal in mid-May to continue to provide job security for the more than 38,000 associates who currently have those protections in exchange for the unions agreeing to greater work-rule flexibility. For example, the company is seeking greater latitude to move people to the work and work to the people so we can operate more efficiently. Although there has been some movement on the union’s part on work-rule changes over the last six weeks, the proposals made by the union are insufficient.

Health care and pension benefits. We’re asking that East associates make modest monthly contributions to the cost of their health care premiums, as do 99 percent of American workers. These contributions can be as little as about $24 a month for individuals and $107 for a family.

The company is also seeking additional cost-sharing measures, as they relate to office visit co-pays, deductibles and co-insurance, which have not significantly changed in many years. In fact, the CWA/IBEW have agreed to similar changes in other contracts even within our own industry. These plan changes would also apply to retirees. The company is also looking to make changes to our current defined benefit pension plan for associates, which is causing future pension liabilities to rise substantially. Today, we provide both a generous pension and a matching 401(k) plan — highly unusual in today’s competitive environment. To achieve our goal of preserving pension benefits already earned while reducing the growth of our pension liabilities, our proposal would increase the match in the 401(k) plan and allow active employees to continue to accrue pension benefits at a reduced rate up to 30 years of service.

As for other benefits, we’re proposing no changes to the short-term disability and life insurance plans for current associates.

New hires would be eligible to receive an enhanced 401(k) plan and will have the option to purchase retiree health insurance and life insurance benefits.

Attendance. Another major cost driver is absence. Our proposal limits paid incidental absence to six days a year while providing a cash incentive for associates who have five days or less of paid incidental absence. These incidental absence days are not counted toward your disability benefit and more than 50 percent of East associates would benefit from this incentive opportunity, based on historical data.

Other work rule changes. Most of our work rules were conceived in a much simpler technological era. Today, these inflexible rules get in the way of serving customers and impose unacceptable costs on the business, which makes us less competitive. We’re proposing a number of changes – some of them voluntary — to make us a more effective and flexible organization. Examples include piloting a voluntary work-at-home program and expanding voluntary home garaging programs, which will reduce costs and help participating employees balance work-life pressures.

While this is not an exhaustive summary of our proposals, under this contract Verizon would continue to provide good jobs that are well-compensated and provide eligibility for great benefits. Again, we’ve been at this for a year now, and the company has a strong desire to reach an agreement this summer. Our goal remains achieving a fair and reasonable settlement that positions the Wireline business to succeed – not just next year but for many years in the future.

The DailyKos reported on March 23rd.

An IBEW Local President highlighted the fact that negotiations can’t go on forever, and that Verizon’s failure to bargain in good faith has a probable endgame: “At some point in time, we think the company is posturing to lay down their last best and final offer,” Huber said. He said the unions — representing about 5,600 wireline workers and a similar number of back office employees who are members of the CWA — fear the company will declare impasse in talks, and would no longer comply with the terms of the previous contract. 
Read the story here.

Related information: How To Play Collective Bargaining Hardball with the Union