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CWA Settlement with Verizon Meets Goals of Preserving Job Security and Health Benefits
Washington, D.C. -- The Communications Workers of America today announced a tentative 5-year collective bargaining settlement with Verizon Communications that meets the union's key goals of protecting members' job security rights, health care and other benefits and provides fair wage and pension improvements.
The agreement, subject to member ratification, covers 60,000 workers in the company's Northeast and Mid-Atlantic operations in 12 states and the District of Columbia. A similar settlement was announced by the International Brotherhood of Electrical Workers representing another 18,000 Verizon employees. The two unions bargained in coordination and worked closely in member mobilization activities.
"We're grateful for the help of Federal Mediation and Conciliation Service Director Peter Hurtgen, who worked extremely hard to facilitate these talks over the past several weeks," said CWA President Morton Bahr. "Director Hurtgen's experience and professionalism were extremely valuable in helping us resolve some very contentious issues."
The agreement preserves the existing contract provisions protecting workers against layoffs and against the transfer of their work out of communities in the region – key issues for union members.
Health care premiums remain fully paid by the company for both active workers and retirees, which was another major CWA goal. The agreement calls for some increases in deductibles and co-payments for medical care and prescription drugs, but as a percentage of Verizon's total health care costs, employees' contributions, now 5.6 percent, will be the same or slightly less by the end of the contract.
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Among health coverage improvements, a new PPO arrangement will be integrated with the existing indemnity plans, allowing workers to choose more cost-efficient providers. This will mean lower costs for many workers and substantial savings for the company. The pact also calls for improvements in preventative medicine, dental coverage, infertility treatment, hearing aid reimbursement and other areas.
The settlement provides an immediate cash bonus of 3 percent, averaging $1,600, as well as guaranteed base wage increases in 2004 through 2007 which – together with estimated cost-of-living adjustments in the third and fourth years – yield a compounded increase of 10.6 percent over the four years. The wage package could be higher depending upon the Consumer Price Index. In addition, annual profit-sharing cash bonuses next year through 2008 will give employees a minimum of $3,000.
Also, each April the parties will hold discussions over potential additional wage increases as well as the broad area of jobs and job security. Only matters that are mutually agreed-to in those talks will be implemented.
The agreement increases pensions by 11 percent and preserves a lump-sum cash-out option.
The parties also agreed to work with FMCS Director Peter Hurtgen in a process to develop a cooperative relationship built on mutual trust and respect between the company and the unions. "Such a relationship is essential to making Verizon as successful as we all want it to be in the years ahead," said Bahr.
The previous contract expired on August 2. While union members had authorized their leaders to call a strike, union officials judged that sufficient progress was being made to continue negotiations past the deadline.
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The agreement, subject to member ratification, covers 60,000 workers in the company's Northeast and Mid-Atlantic operations in 12 states and the District of Columbia. A similar settlement was announced by the International Brotherhood of Electrical Workers representing another 18,000 Verizon employees. The two unions bargained in coordination and worked closely in member mobilization activities.
"We're grateful for the help of Federal Mediation and Conciliation Service Director Peter Hurtgen, who worked extremely hard to facilitate these talks over the past several weeks," said CWA President Morton Bahr. "Director Hurtgen's experience and professionalism were extremely valuable in helping us resolve some very contentious issues."
The agreement preserves the existing contract provisions protecting workers against layoffs and against the transfer of their work out of communities in the region – key issues for union members.
Health care premiums remain fully paid by the company for both active workers and retirees, which was another major CWA goal. The agreement calls for some increases in deductibles and co-payments for medical care and prescription drugs, but as a percentage of Verizon's total health care costs, employees' contributions, now 5.6 percent, will be the same or slightly less by the end of the contract.
--more--
Among health coverage improvements, a new PPO arrangement will be integrated with the existing indemnity plans, allowing workers to choose more cost-efficient providers. This will mean lower costs for many workers and substantial savings for the company. The pact also calls for improvements in preventative medicine, dental coverage, infertility treatment, hearing aid reimbursement and other areas.
The settlement provides an immediate cash bonus of 3 percent, averaging $1,600, as well as guaranteed base wage increases in 2004 through 2007 which – together with estimated cost-of-living adjustments in the third and fourth years – yield a compounded increase of 10.6 percent over the four years. The wage package could be higher depending upon the Consumer Price Index. In addition, annual profit-sharing cash bonuses next year through 2008 will give employees a minimum of $3,000.
Also, each April the parties will hold discussions over potential additional wage increases as well as the broad area of jobs and job security. Only matters that are mutually agreed-to in those talks will be implemented.
The agreement increases pensions by 11 percent and preserves a lump-sum cash-out option.
The parties also agreed to work with FMCS Director Peter Hurtgen in a process to develop a cooperative relationship built on mutual trust and respect between the company and the unions. "Such a relationship is essential to making Verizon as successful as we all want it to be in the years ahead," said Bahr.
The previous contract expired on August 2. While union members had authorized their leaders to call a strike, union officials judged that sufficient progress was being made to continue negotiations past the deadline.
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