Verizon, Unions in Federal Mediation Talks

Union Square Rally. Click photo to view gallery. ( photo by C. Richter)

By Linda Sadlouskos

With the one-year deadline of the expiration of two unions’ contracts with Verizon looming on Aug. 6, negotiators for both sides are before a federal mediator in Washington.

A union leader representing thousands of New Jersey wireline workers said he is hoping for an indication of where talks are heading by the end of this week.

Huber said that Verizon Communications and union leaders from throughout the Northeast have been in federal mediation in Washington since last Wednesday.

Both sides are under “lock and key” as far as discussing mediation with the media, he said. But he suggested there may be some more news by the end of the week.

Read the full story.

Con Edison Lockout Ending: Cuomo Announces Deal Between Con Edison And Union Workers

By Fay Abuelgasim 07/26/12

New York — Gov. Andrew Cuomo, fearing that a severe storm could wreak havoc with the city’s power system, intervened in a labor dispute between the Consolidated Edison utility and its workers and brokered a tentative agreement Thursday after a weeks-long standoff.

“You don’t want a storm hitting New York City without Con Ed being at full force,” Cuomo said at a news conference announcing that an agreement had been reached.

Terms of the four-year agreement were not disclosed, since it must be taken back to the union’s executive committee and membership and to Con Ed’s board. But Cuomo said it was “a good deal, I believe, for both sides.”

Click here to read the full story.

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

Washington D.C.— Federal Mediation and Conciliation Service Director George H. Cohen issued the following statement today on the ongoing labor negotiations between the Verizon Communications Inc., the Communication Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW):

“Pursuant to the joint agreement of the above named parties, future negotiations for successor collective bargaining agreements will be conducted under the auspices of Agency Director George H. Cohen and Director of Mediation Services John Pinto commencing on Wednesday morning, July 25, 2012 at our Washington, D.C. office.”

“Because of the sensitivity of these negotiations, in keeping with our past custom and practice, and the agreement between the parties, the FMCS and the parties will refrain from any public comment concerning the future schedule and/or the status of talks among the parties until further notice.”

Click here to view PDF.

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!

Workers Stand for America Rally! Philadelphia, PA – Saturday, August 11, 2012

Sign the Bill of Rights (click on the image)

Join CWA, AFL-CIO, national Building and Construction Trades Department, all our union brothers and sisters, community partners and political allies on Saturday, August 11, 2012 in Philadelphia to fight for the survival of America’s middle class and an economy that works for the 99%.

Organized labor built the middle class in our country and is now leading the charge to preserve it. Thousands upon thousands of union members, students, social activists, and community partners from across the country will converge in Philadelphia to send a message that the middle class cannot survive in an economy that only benefits the 1%. We will send a message that America is not a plutocracy to be governed by the ultra wealthy, but a democracy which bestows power to its people and equal opportunity to all.

Reclaiming our democracy only works when we all participate. So mark your calendars for this rally and be there for yourselves, your family, and our country’s future.

Date:
Saturday, August 11th, 2012
Time:
11:00 a.m. – 4:00 p.m.
Place:
Eakins Oval
(In front of the Philadelphia Museum of Art)
2600 Benjamin Franklin Parkway
Philadelphia, PA 19130
America is the greatest country in the world because we never stop improving ourselves. And on August 11th we are going to recognize the need for a Second Bill of Rights to ensure the American Dream is there for our children as it was there for us. Buses will be provided, 1101 members call the local at (212-633-2666) to reserve a seat. We look forward to seeing you there.

Why We Will Be In Philly Aug. 11

Taking a Stand for America

A disappearing middle class.

Jobs that pay less and less.

Working families and students drowning in debt.

Profits going straight to the 1 percent.

Is this the America we want?

Support America’s Second Bill of Rights

America needs a Second Bill of Rights, rights that build on the political freedoms of the original by promoting economic freedom and opportunity, as envisioned by President Franklin D. Roosevelt in his State of the Union address in January 1944. It’s time.

Read America’s Second Bill of Rights and add your name in support.

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.

Hundreds of Union Members Rally in Support of Locked Out ConEd Workers

Members of the Utility Workers Union of America Local 1-2 participate in a march and rally in support of locked out Consolidated Edison workers, Tuesday, July 17, 2012 at Union Square in New York. (Click on photo to view album)

The Associated Press
July 17, 2012

NEW YORK — Locked-out Consolidated Edison workers and other union members pledged to stand together at a Manhattan rally in support of the utility employees.

Tuesday’s loud, boisterous rally was held in Union Square in the midst another heat wave blanketing New York City. Joining the members of Utility Workers Union of America Local 1-2 were members of the Transport Workers Union, the United Federation of Teachers, the Communications Workers of America and others who threw their support to the utility workers.

“Your fight is our fight,” said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union.

“This struggle isn’t just about Con Ed workers, it’s about all of us,” he told the cheering crowd.

The Con Ed workers were locked out on June 30 after their contract expired and negotiations over a new one failed. About 5,000 managers are keeping electricity going for 3.2 million customers in New York City and Westchester County. Talks between the utility and its largest union resumed on Monday.

Neither Con Ed nor the union has indicated any real progress.

Union spokesman John Melia says the company “bowed to public pressure” in reinstating health insurance for the 8,500 locked-out workers.

Workers are covered for July, retroactively.

(Story distributed by The Associated Press)

More News:

At Con-Ed Lockout Protest, Unions Embrace Class War

Lockout Continues As Con Edison Workers Rally In Union Square

Labor Movement Unites with Locked-Out UWUA Local 1-2 Workers

Con Ed workers rally against lockout

Con Ed: Union’s demand is baseless

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

Verizon’s Plans to Abandon Rural Landline Customers – Sign Up for Our Expensive LTE 4G Wireless Broadband With a 10GB Usage Cap Instead

Some of the most revealing commentary from McAdam came in response to questions about what Verizon plans to do with its enormous landline phone network, dominant in the northeastern United States.

In comments sure to alarm rural Verizon customers from Massachusetts to Virginia, McAdam clearly signaled the company is laying the groundwork to abandon its rural phone network (and DSL broadband) as soon as regulators allow. Dave Burstein at DSL Prime estimates that could impact as many as 18 million Verizon customers across the country.

Verizon’s Unionized Employees Are Wrong-Headed Defending Verizon’s Landline Network

McAdam also blamed the company’s unionized employees for remaining loyal to the company’s traditional role in the landline business.  Unions like the Communications Workers of America continue to push Verizon to expand its FiOS fiber optic network in more places, but the company has left its FiOS expansion on hold, diverting investment into its wireless business. Both McAdam and the union agree the days of copper wire networks are numbered, but McAdam hints that union concessions (and fewer unionized employees) are required before the company will again expand FiOS.

Read full Story.

Lawful and Unlawful Refusals to Work Voluntary Overtime

District 1 VP Chris Sheldon (left). Trenton Rally 2-25-2011

Verizon unit members should be aware that the recent threat from Kevin Service was just that an empty threat. CWA District One Vice President Chris Shelton’s You Tube Video clearly delineates the line between lawful and unlawful refusals to work voluntary overtime.

The UNION cannot direct you to refuse to work overtime. It is perfectly legal for you of your own volition to refuse to work voluntary overtime for whatever reason YOU choose.

So,by this message the UNION is not directing you to either work or not to work voluntary overtime, that decision is completely yours and that is what Chris Shelton’s YouTube message is meant to convey.

View the YouTube message here.