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1998 Telecommunications Industry Bargaining: Background on Bargaining
This year, the Communications Workers of America will negotiate contracts covering nearly 400,000 workers at the nation's largest telecommunications employers. This is the largest round of bargaining in any industry this year.
Negotiations get underway next week - beginning March 9 - at Southwestern Bell and Pacific Telesis - which have merged to form SBC Corp. In April, talks with AT&T and Lucent Technologies will open April 6 and April 20, respectively. A company-by-company summary, information sheet and bargaining goals are included in this release. This summer, CWA also will negotiate with Ameritech, Bell Atlantic, Bell South, US West and GTE.
Up-to-date information on bargaining also is available in a special section on CWA's web page, ga.cwa-union.org.
Setting the Standard for Good American Jobs
CWA's Telecommunications Bargaining Council, nearly 500 union officers representing members at local, long distance and other telecommunications companies, adopted national bargaining goals at a December 1997 meeting. Individual bargaing units also have been meeting on company-specific contract issues.
Key bargaining goals for 1998 call for improvements in job security, including voluntary transfer rights, additional limits on subcontracting, and educational and training opportunities; an end to abusive and excessive overtime; access to the new jobs of the industry, with union standards and representation; pension improvements and wage gains that reflect the success and productivity of the industry.
"Between now and the year 2000, we can predict greater and faster changes in our industry than in any three-year period since the Bell breakup 15 years ago. In this year's bargaining round, we will be setting the terms that determine CWA members' access to future jobs and the standards of those jobs," said CWA President Morton Bahr.
CWA members have helped make their companies profitable by offering top-quality service, and they want to share in the new opportunities opening throughout the industry. In sharp contrast to the excessive downsizing of several years ago, today, telecom companies are scrambling to meet service demands, and are putting extreme pressure on employees through abusive overtime, inflexible scheduling and unreasonable work quotas. This threatens the quality of service to customers.
CWA believes this to be a misguided approach for companies that want to be profitable and succeed in this competitive environment. Instead, CWA supports fixing the problems caused by this excessive downsizing, with the recognition by our employers that competitive advantage is based on the dependable, high quality service provided by loyal well-trained employees.
CWA also is seeking card check recognition, neutrality and other agreements to organize new growth jobs in such areas as wireless, Internet, data and cable television services and more. "With the exception of SBC Corp., which last year agreed not to oppose union organizing efforts and to voluntarily recognize the union if CWA demonstrated majority support in a card check, many employers are trying to `wall off' new jobs and new technologies from union standards and union workers. Gaining access to these jobs and opportunities is a key bargaining goal this year," Bahr said.
Industry Outlook
Since the last round of bargaining in 1995, industry profits have risen by 23.6 percent, and CWA members' productivity has boosted revenues per employee by 15 percent. Passage of the 1996 Telecommunications Act has brought tremendous change and is opening new business opportunities for companies, especially in deregulated information and communications fields.
Industry profitability (net income per employee) has increased by an average of 58.4 percent since 1992, with some companies posting triple digit gains over the 1992-1996 period. Profits per employee in 1996 also increased, with all the major telecommunications companies in bargaining this year posting profits in excess of $1 billion.
Facts about the Telecommunications Industry
Comparable data is not now available for Lucent, however the company has been extremely profitable. Its stock price of 30 5/8 in April 1996 - when Lucent first began trading - has increased 266 percent and is now 110 5/8.
source: company annual reports/CWA research dept.
Negotiations get underway next week - beginning March 9 - at Southwestern Bell and Pacific Telesis - which have merged to form SBC Corp. In April, talks with AT&T and Lucent Technologies will open April 6 and April 20, respectively. A company-by-company summary, information sheet and bargaining goals are included in this release. This summer, CWA also will negotiate with Ameritech, Bell Atlantic, Bell South, US West and GTE.
Up-to-date information on bargaining also is available in a special section on CWA's web page, ga.cwa-union.org.
Setting the Standard for Good American Jobs
CWA's Telecommunications Bargaining Council, nearly 500 union officers representing members at local, long distance and other telecommunications companies, adopted national bargaining goals at a December 1997 meeting. Individual bargaing units also have been meeting on company-specific contract issues.
Key bargaining goals for 1998 call for improvements in job security, including voluntary transfer rights, additional limits on subcontracting, and educational and training opportunities; an end to abusive and excessive overtime; access to the new jobs of the industry, with union standards and representation; pension improvements and wage gains that reflect the success and productivity of the industry.
"Between now and the year 2000, we can predict greater and faster changes in our industry than in any three-year period since the Bell breakup 15 years ago. In this year's bargaining round, we will be setting the terms that determine CWA members' access to future jobs and the standards of those jobs," said CWA President Morton Bahr.
CWA members have helped make their companies profitable by offering top-quality service, and they want to share in the new opportunities opening throughout the industry. In sharp contrast to the excessive downsizing of several years ago, today, telecom companies are scrambling to meet service demands, and are putting extreme pressure on employees through abusive overtime, inflexible scheduling and unreasonable work quotas. This threatens the quality of service to customers.
CWA believes this to be a misguided approach for companies that want to be profitable and succeed in this competitive environment. Instead, CWA supports fixing the problems caused by this excessive downsizing, with the recognition by our employers that competitive advantage is based on the dependable, high quality service provided by loyal well-trained employees.
CWA also is seeking card check recognition, neutrality and other agreements to organize new growth jobs in such areas as wireless, Internet, data and cable television services and more. "With the exception of SBC Corp., which last year agreed not to oppose union organizing efforts and to voluntarily recognize the union if CWA demonstrated majority support in a card check, many employers are trying to `wall off' new jobs and new technologies from union standards and union workers. Gaining access to these jobs and opportunities is a key bargaining goal this year," Bahr said.
Industry Outlook
Since the last round of bargaining in 1995, industry profits have risen by 23.6 percent, and CWA members' productivity has boosted revenues per employee by 15 percent. Passage of the 1996 Telecommunications Act has brought tremendous change and is opening new business opportunities for companies, especially in deregulated information and communications fields.
Industry profitability (net income per employee) has increased by an average of 58.4 percent since 1992, with some companies posting triple digit gains over the 1992-1996 period. Profits per employee in 1996 also increased, with all the major telecommunications companies in bargaining this year posting profits in excess of $1 billion.
Facts about the Telecommunications Industry
- Industry revenues increased by 22 percent from 1992 to 1996, from $176,908 billion to $215,859 billion.
- All major telecom companies in bargaining this year posted profits in excess of $1 billion for 1996. Each employee produces an average profit of $28,508 for his or her employer - that's after all the bills are paid, including executive compensation, research and development, wages, benefits and health care.
Company 1996 profit Profit per employee
AT&T& $5.9 billion. $45,245
Ameritech $2.1 billion $31,757
Bell Atlantic $1.9 billion $30,351
Bell South $2.8 billion $34,465
GTE $2.8 billion $33,735
NYNEX $1.5 billion $22,189
Pac Telesis $1.1 billion $22,760
SWB $2.1 billion $34,124
Comparable data is not now available for Lucent, however the company has been extremely profitable. Its stock price of 30 5/8 in April 1996 - when Lucent first began trading - has increased 266 percent and is now 110 5/8.
source: company annual reports/CWA research dept.
- Deregulation has brought about merger and growth in existing and new services. Wireless has experienced a 30 percent annual growth rate, with $10 billion invested in wireless networks in 1996. Recent mergers include Pacific Telesis and Southwestern Bell, forming SBC Corp., and NYNEX and Bell Atlantic, forming Bell Atlantic.
- Total telecommunications industry employment has decreased by 13.2 percent over the 1992-1996 period, with an average decrease of 3.1 percent, or 78,738 employees. During this time, AT&T posted an increase of 6.9 percent in employment; Lucent remained at the same employment level; and employment at the regional Bells declined at a range of 7.3 percent at Ameritech to 17.5 percent at NYNEX. GTE employment levels dropped most dramatically, by 20.2 percent.
source: company annual reports/ CWA research dept.
Additional Information
A special section of the CWA web page - ga.cwa-union.org - provides updated bargaining information on all negotiations. Media relations and coordination for the union as a whole are handled in Washington, D.C. by Jeff Miller, CWA communications director, and Candice Johnson, associate director. We can be reached by phone at 202/434-1168 and e-mail at jmiller@cwa-union.org and cjohnson@cwa-union.org. Please feel free to contact us for any information or assistance.
Listed below are the CWA vice presidents who head negotiations within their districts, the states each district encompasses, the district's P.R. coordinator, location of the talks and other information about negotiations.
Bargaining Schedule and Information
AT&T and Lucent Technologies
CWA Vice President: Jim Irvine, Communications/Technologies, Wash. D.C.
P.R. Coordinator: T Santora, 202/434-1302
Contracts expire May 30.
Talks begin April 6 for AT&T; April 20 for Lucent.
Location: Washington, D.C. States: Nationwide
CWA-represented workers: 50,000 (ATT) 26,000 (Lucent)
IBEW-represented workers: 2,000 (ATT) 18,000 (Lucent)
SBC Corp. - Southwestern Bell and Pacific Telesis
CWA Vice Presidents: Ben Turn, District 6, SWB, Austin, Texas
Tony Bixler, District 9, PacTel, Burlingame, Calif.
P.R. Coordinators: David Locke, District 6, 816/842-0600
Leslie Jackson, District 9, 650/348-7303
Contracts expire August 8.
Coordinated bargaining with Southwestern Bell and Pacific Telesis begins March 9.
Locations: St. Louis and Sunset Hills, Mo. (Southwestern Bell)
Pleasanton, Calif. (Pacific Telesis)
CWA-represented workers: 41,000 (SWB) and 35,000 (Pac Tel)
States: Missouri, Oklahoma, Texas, Kansas, Arkansas, California, Nevada.
Bell Atlantic - "South" and "North" (formerly NYNEX)
CWA Vice Presidents: Larry Mancino, District 1, New York
Pete Catucci, District 2, Silver Spring, Md
Vince Maisano, District 13, Philadelphia
P.R. Coordinators:Bob Masters, District 1, 212/344-2515
Barbara Lephardt, District 2, 301/562-8132
Vince Maisano, District 13, 215/546-5574
States: Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, New York, New Jersey, Delaware,
District of Columbia, Maryland, Virginia, West Virginia, Pennsylvania.
Contracts expire August 8.
Locations: New York (BA "North") and Washington, D.C. (BA "South")
CWA-represented workers: 37,000 (BA "North") and 36,000 (BA "South")
Bell South
CWA Vice President: Jimmy Smith, District 3, Atlanta
P.R. Coordinators: Jimmy Smith and Noah Savant, 404/296-5553
States: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina,
Tennessee.
Contract expires August 8.
Location: Atlanta
CWA-represented workers: 49,000
Ameritech
CWA Vice President Jeff Rechenbach, District 4, Cleveland
P.R. Coordinator Seth Rosen, 440/333-6363
States: Illinois, Indiana, Michigan, Ohio, Wisconsin.
Contract expires August 8.
Location: Chicago
CWA-represented workers: 30,000
US West
CWA Vice President Sue Pisha, District 7, Denver
P.R. Coordinator Bill Thornburg, 303/770-2822
States: Arizona, Colorado, Idaho, Iowa, Montana, Minnesota, Nebraska, New Mexico, North Dakota,
Oregon, South Dakota, Utah, Washington, Wyoming.
Contract expires August 15.
Location: Denver
CWA-represented workers: 36,000
GTE Corp.
CWA Vice President T.O. Moses, Telecommunications, Dallas
P.R. Coordinator John Howard, 214/637-0173
States: Arkansas, Oklahoma, New Mexico, Texas,(GTE Southwest); Washington and Oregon, (GTE
Northwest)
Contract with GTE Southwest expires August 15; with GTE Northwest, Sept. 26.
Location: Dallas (Southwest)
CWA-represented workers: 3,700, Southwest; 400, Northwest