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Additional stories are on www.cwa.net
CWA Update July 27, 2004
CWA'ers met with management on Tuesday, July 27, to hear their response to our buy-out proposal and our work-at-home proposal, and to hear further details of management's "Transformation Plan."
Present for the company were ECLAT consultant Doug McKeen, VP Res Kerry Carstairs, VP Customer Service Donna Paladini, management from the labor relations, operations, and benefits departments, attorneys and contracted analysts. Present for the union were Local Presidents, CWA analysts, staff and attorneys.
The management's reply to our buyout and work-at-home proposals was disappointing. Our two proposals were carefully designed to save the company millions of dollars, while at the same time providing voluntary options for employees. Both proposals would have required serious alteration of the existing collective bargaining agreement to achieve, but we were willing to make those changes and were confident of approval by the members.
Instead of pursuing a path of mutually negotiating cost-reduction programs, management simply tacked our cost-cutting proposals onto their already existing demand that we cut pay and benefits to the level of America West. CWA'ers stated that we don't consider that bargaining in good faith by any normal labor relations standard.
Here's management's proposal in bullet form. We'll post the entire document at our website as soon as we have it in electronic format.
Management wants to:
Cut pay to America West levels - $12.65 after 10 years, $13.10 after 11 years.
No future pay raises unless based on pre-tax profit margins
Employees recalled from furlough would go to bottom of pay scale ($7.65)
Eliminate all shift premiums, CSD premiums, Customer Contact Premium, etc.
Customer Service Supervisors receive $.61 an hour premium (total $13.71 at top pay)
Contract remains in effect until the year 2012
Eliminate holidays, vacations, sick days and replace with PDO's
Eliminate paid moves for those forced to relocate
Eliminate all double-time overtime rates
Eliminate all retiree medical and dental coverage
Eliminate retiree life insurance
Eliminate our defined contribution retirement plan (currently 4%, 6%, 8% or 10% of pay)
Change 401k match from 2% to 3%
Management "reserves the right to contract out any or all work covered by the CBA (Collective Bargaining Agreement), if by doing so, the Company is able to accomplish the work more economically"
Increase doctor office visit co-pays
Increase medical insurance deductibles
Reduce lifetime maximums on medical coverage
Increase pharmacy co-pays
Eliminate orthodontia benefit for adults, and reduce it for children
Increase employee dental contributions
Eliminate employer paid life insurance
Management's reply to our early-out proposal is to treat it as an inducement to vote for the contract changes, insuring that a slim majority would take the buyout and stick those that stay on the job with a $13.10 per hour salary. We told management the buyout plan is designed to reduce seniority, thereby reducing costs, thereby eliminating the need for the drastic cuts demanded by management.
Management's lump-sum buyout plan:
Years of Service
5 - 9
10 - 14
15 Plus
Cash
$5000
$10,000
$15,000
Medical
4 Months
8 Months
12 Months
Travel
5 Years
10 Years
Lifetime
Management's reply to work-at-home proposal is essentially, "Fine, we'll take those savings along with everything else we have demanded." In that sense, you could say it was a positive response.
We will continue these discussions and assume that management is trying to reach agreement, and not just marking time until they file another bankruptcy to force changes on the employees without a vote. To be frank about it, we are not entirely convinced of that.
CWA Local Officers and Staff
Additional stories are on www.cwa.net
CWA Update July 27, 2004
CWA'ers met with management on Tuesday, July 27, to hear their response to our buy-out proposal and our work-at-home proposal, and to hear further details of management's "Transformation Plan."
Present for the company were ECLAT consultant Doug McKeen, VP Res Kerry Carstairs, VP Customer Service Donna Paladini, management from the labor relations, operations, and benefits departments, attorneys and contracted analysts. Present for the union were Local Presidents, CWA analysts, staff and attorneys.
The management's reply to our buyout and work-at-home proposals was disappointing. Our two proposals were carefully designed to save the company millions of dollars, while at the same time providing voluntary options for employees. Both proposals would have required serious alteration of the existing collective bargaining agreement to achieve, but we were willing to make those changes and were confident of approval by the members.
Instead of pursuing a path of mutually negotiating cost-reduction programs, management simply tacked our cost-cutting proposals onto their already existing demand that we cut pay and benefits to the level of America West. CWA'ers stated that we don't consider that bargaining in good faith by any normal labor relations standard.
Here's management's proposal in bullet form. We'll post the entire document at our website as soon as we have it in electronic format.
Management wants to:
Cut pay to America West levels - $12.65 after 10 years, $13.10 after 11 years.
No future pay raises unless based on pre-tax profit margins
Employees recalled from furlough would go to bottom of pay scale ($7.65)
Eliminate all shift premiums, CSD premiums, Customer Contact Premium, etc.
Customer Service Supervisors receive $.61 an hour premium (total $13.71 at top pay)
Contract remains in effect until the year 2012
Eliminate holidays, vacations, sick days and replace with PDO's
Eliminate paid moves for those forced to relocate
Eliminate all double-time overtime rates
Eliminate all retiree medical and dental coverage
Eliminate retiree life insurance
Eliminate our defined contribution retirement plan (currently 4%, 6%, 8% or 10% of pay)
Change 401k match from 2% to 3%
Management "reserves the right to contract out any or all work covered by the CBA (Collective Bargaining Agreement), if by doing so, the Company is able to accomplish the work more economically"
Increase doctor office visit co-pays
Increase medical insurance deductibles
Reduce lifetime maximums on medical coverage
Increase pharmacy co-pays
Eliminate orthodontia benefit for adults, and reduce it for children
Increase employee dental contributions
Eliminate employer paid life insurance
Management's reply to our early-out proposal is to treat it as an inducement to vote for the contract changes, insuring that a slim majority would take the buyout and stick those that stay on the job with a $13.10 per hour salary. We told management the buyout plan is designed to reduce seniority, thereby reducing costs, thereby eliminating the need for the drastic cuts demanded by management.
Management's lump-sum buyout plan:
Years of Service
5 - 9
10 - 14
15 Plus
Cash
$5000
$10,000
$15,000
Medical
4 Months
8 Months
12 Months
Travel
5 Years
10 Years
Lifetime
Management's reply to work-at-home proposal is essentially, "Fine, we'll take those savings along with everything else we have demanded." In that sense, you could say it was a positive response.
We will continue these discussions and assume that management is trying to reach agreement, and not just marking time until they file another bankruptcy to force changes on the employees without a vote. To be frank about it, we are not entirely convinced of that.
CWA Local Officers and Staff