AT&T "Legacy T" Bargaining Report #4

Today the Company presented their Benefits Proposals.  Based on Tuesday's presentation and the plan they forced on their management, it was mainly what we expected, though they came up with a few ideas that even surpassed our lowest expectations.  Their plan is much too detailed to list it all here, so we will just give you the highlights (or lowlights).  However, you should remember that this is their FIRST proposal.  There is a lot of bargaining still to come.  Hopefully there also a lot of activity out in the Locals that is still to come too, and you must let AT&T management know this is not a plan any of us can live with.

One thing people need to understand about all the dollar amounts in the Company's proposal is that none of them are fixed amounts.  The Company will adjust them every year based on some insurance company formula based on their spending.  It's just like the people who got stuck with insane variable mortgages they couldn't pay while the value of their homes plummeted.  They want us to agree to this without us even knowing how much we will be paying in 2010.

1.     There is a "standard" plan for individuals (not families) that will have no monthly premium.  The big catch is that (if you are "in network") there is a $1150 yearly deductible you have to pay before the plan covers a penny.  Families in this plan would have to pay $95 a month with a $2300 deductible.  There are various other "options" that have families paying as much as $321 a month.

2.     The out-of-pocket yearly maximums also went from $3000 for a family in network to up to $11,600.

3.     For office visits there is no flat co-pay, but you pay (in-network) 10% of the fee for the visit, whatever it is (that is, if you've met your deductible – otherwise it's 100%).

4.     Some of the prescription co-pays went up (and can change yearly).

5.     There will be a monthly premium (which can change yearly) for families for Dental with a PPO.  The maximum yearly benefit has been lowered for dental to $1300 a year.

6.     There will be a monthly premium for vision for families. 

But that's not even the worst of it.

1.     ANYONE WHO WAS HIRED AFTER 8/1/97 WHO RETIRES AFTER THIS CONTRACT IS SIGNED WILL GET ZERO COMPANY PAID MEDICAL BENEFITS.  They can buy it on their own at "cobra" rates.

2.     Those hired before 8/1/97 who retire during the agreement will get paid benefits by the company, but ONLY for themselves.  They will have to pay 44% of the premium of each dependent (which can change every year).

3.     Their proposal takes fully-paid benefits away from part-time workers no matter how many hours they work.  The most they can get is 50% of their premium covered if they work 20 hours or more a week.

There is a lot more to this plan.  The bottom line is this: It is much worse than it has to be considering the economic health of AT&T.  It punishes those who need care the most.  It does not FIX one health care issue – all it does is shift the cost from AT&T to us.

As we said in the beginning, this was Company proposal ONE.  There will be a lot more back-and-forth over the next few weeks.  How much better it gets will depend a lot on our Unity and our refusal to allow this to happen.