CWA/Alcatel-Lucent Contract Extension signed

CWA/Alcatel-Lucent Contract Extension signed 

The CWA and Alcatel-Lucent have agreed to a one-year extension of the 2004 contracts which were originally set to expire on May 25, 2013. 

•   All provisions of the current contract have been extended until May 24, 2014 (unless amended below). This includes the no-layoff provision for installers and active Health Care coverage under current conditions through   expiration.

•   Retiree Health and Life insurance have been extended through Dec. 31, 2014. 

•    $40 million will be used from the Taft Hartley Trust to offset the cost of retiree health care. 

•   There is a pension band increase of 3% which will impact future retirees. 

•    The Long Term Disability Plan will be amended. Medical benefits for those on LTD will be funded in the same way a retiree health care, however premiums will remain the same as active employees. 

•   In lieu of a General Wage increase (GWI) all employees will receive a $1000 bonus. 

•    The number of Academic Awards will be reduced, from 15 a year, to 5. All those currently receiving the award will continue to receive it as long as they continue to meet the program criteria. 

•    The Alliance will continue to be funded at the current level except that 2 out of the 4 quarters will be paid from the Alliance Reserve. 

•    Special Voluntary Termination Program: The Company may offer a SVTP (up to a maximum of three times during the life of the agreement). This will provide, to employees voluntarily leaving the payroll, certain provisions of the April 19, 2001 Memorandum of Agreement including: (a) a five year enhanced Transitional Leave of Absence (b) Expanded Social Security Supplement (c) a Special Pension Benefit (which is significantly higher than Termination Pay and is paid out as a pension payment (d) a Special one-time lump sum Transition Payment. This amount has been increased from $3400 to $10,000 but is in lieu of the $5000 FAED money that employees could have received. Note: This SVTP offer will be made by base location and may not necessarily be offered to every installer in every location.

•    Bell Labs Protection Against Layofff– The SVTP will be offered in the near future. Those taking the offer will offset the surplus of 11 in Naperville, Illinois and the 20 in Murray Hill, NJ. Once that surplus s resolved either through the SVTP or an involuntary surplus, there will be no further layoffs in those locations (or in any title outside of installation) until March 31, 2014.

•    Installation Protection against layoff – In addition to those currently covered under the no-layoff provision of the 2004 Agreement, an additional one (1) installer will be receive no-layoff protection for every 3 who take the SVTP.