Avaya Shareholders Meeting

Good morning,

My name is Ralph Maly and I am a Vice President for the Communications Workers of America representing the occupational employees of Avaya.

I have spoken at past shareholder meetings voicing the concerns of our members.

I’m here today to again voice our concerns over the proposed merger with Silver Lake and TPG capital and the impact it may have on our members and their jobs.

Too many times these type of mergers result in a "strip and flip" business plan that benefits only a few at the top and results in the loss of jobs for those who make the business a success.

We’re here today to ask, what commitments the new owners are willing to make to our members, to hear their plans for our members future and why this merger is good for us as well as the business. We are also asking to meet with the new owners to discuss those very plans going forward.

Collectively, over the years, CWA and Avaya have been successful in bargaining innovative programs that have helped make Avaya a successful business. The Sales Referral Program continues to be a success for the business and the Technician Certification Program we negotiated continues to add more and more certified techs throughout Avaya allowing our customers to reap the benefits of the best skilled technicians in the industry.

We need to continue these collective efforts going forward.

Our second issue involves the stock options the represented employees received back in 2000 when Avaya was first formed. Since the new company will not be issuing stock going forward and those options granted back in 2000 cannot be exercised, because the grant price is 21.00, those shares will now be rendered worthless for all the represented employees. However, in reviewing the proxy statement a number of options were granted for the directors and executive officers and will be vested as a result of the merger. The value of those options equates to almost 80 million dollars, while the represented workforce valued at 2.4 million is denied. Our members have dealt with the many perks the senior leadership has received over the years but there can be no justification for these actions. The greed far exceeds the need. We approached labor relations to bargain with us over the issue but they refused. We are now asking the leadership of Avaya to reconsider those options for the represented workforce.

Finally, Avaya in Germany has decided to withdraw from the employers association that establishes the pattern bargaining for all contracts within their particular industry. This decision has left IG Metal members of Avaya in Germany with the same feeling of uncertainty about their future as our members do here in the United States. Our members as well as those members in Germany want Avaya to succeed as a business but they want to be part of that success. I would urge the leadership of Avaya to step up to the plate and reassure our members and your employees here and abroad that we all will be part of the future and this is not just an elusion of inclusion.

Thank you for your time.