Apr 1, 2002

AT&T Seeks Steep Health Care Cuts

AT&T has come to the bargaining table with demands for steep concessions in health care benefits and disability coverage, reported Ralph Maly, CWA vice president for communications and technologies and the union's chief bargainer.

Facing a CWA team all wearing red, AT&T management outlined proposals that would double co-pays for in-network care and hospital and overnight stays, increase premiums for single and family coverage, and raise prescription drug costs for active members. Retirees and their
dependents also would be hit hard.

Under the company's disability proposal, benefits would be cut in half, from 52 to 26 weeks, and the amount of pay injured workers could receive also would be cut back.

CWA's bargaining team took issue with the demand for givebacks in both areas, noting that in health care costs, CWA has saved the company nearly $3,000 per employee in 2001 alone because of the union's insistence in 1983 that AT&T move to effective managed care.

In 1989, CWA negotiated the first point-of-service managed care networks to provide quality care, hold down costs and avoid cost-shifting to workers, Maly noted. Managed care has resulted in substantial savings for AT&T while ensuring quality care for members and their families, he said. Maly also noted AT&T's refusal to work with CWA on a legislative remedy to rising costs and stressed that CWA continues to present ways the company can save money in this area.

On March 27, CWA members across the country held a "National Action Day on Health Care," wearing bandages and using crutches and wheelchairs to demonstrate that AT&T's plan to cut health care benefits "is a sick idea."

CWA President Morton Bahr noted that AT&T set an "unhelpful tone" at the opening of the talks by lecturing the bargaining team about the state of the industry and CWA's rejection of a contract extension proposal.