Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
BellSouth Announces Additional Dividend Increase But Demands Health Care Cuts from Workers, Retirees
Following is a statement by CWA District 3 Vice President Jimmy Smith. CWA is bargaining with BellSouth Corp. for a new contract covering 48,000 workers in nine states.
Atlanta – Yesterday's news that BellSouth Corp. is again raising its quarterly dividend is good news for shareholders, who have realized a 42 percent increase in dividends over the past 27 months.
But at the bargaining table, BellSouth is insulting the active and retired workers who have built the company's success by demanding big cutbacks in health care benefits and calling proposals to improve benefits and working conditions "too costly" to consider.
BellSouth's health care proposal makes draconian demands of active and retired workers, shifting unreasonable costs to active employees, requiring new hires to pay the majority costs of health care coverage and possibly resulting in no health care coverage at all for future retirees.
CWA has made its position clear: if shareholders are entitled to the dividend increase, our members who have built this company are entitled to quality health care, with no cost shifting, protection for our retirees and a fair wage increase. We will not negotiate a plan that sacrifices new hires and retirees and shifts unreasonable costs to active employees.
CWA members are pleased by BellSouth's strong performance. We're shareholders too, and our skill, training and productivity are what have made BellSouth so successful. BellSouth's net profits have increased 46.7 percent since 2001, to $3.6 billion. CWA workers in 2003 produced a profit of $47,224 per employee, a 69.6 percent increase over 2001.
BellSouth's excellent customer service, a key factor in its profits, has been documented by the American Customer Satisfaction index, conducted by the University of Michigan Business School. In the index, BellSouth has ranked number one among telecom companies for the past consecutive 10 years.
The same company that has posted productivity gains of 8.5 percent since 2001, a low debt ratio and the strongest bond rating in the industry has told our members that it must have concessions in health care. The same company that has increased dividends by 42 percent over the past nine quarters refuses to increase benefits for retirees, many of whom earn poverty-level pensions.
CWA is determined to reach a fair contract, one that reflects the contributions of active and retired members in building a successful company.
###
Atlanta – Yesterday's news that BellSouth Corp. is again raising its quarterly dividend is good news for shareholders, who have realized a 42 percent increase in dividends over the past 27 months.
But at the bargaining table, BellSouth is insulting the active and retired workers who have built the company's success by demanding big cutbacks in health care benefits and calling proposals to improve benefits and working conditions "too costly" to consider.
BellSouth's health care proposal makes draconian demands of active and retired workers, shifting unreasonable costs to active employees, requiring new hires to pay the majority costs of health care coverage and possibly resulting in no health care coverage at all for future retirees.
CWA has made its position clear: if shareholders are entitled to the dividend increase, our members who have built this company are entitled to quality health care, with no cost shifting, protection for our retirees and a fair wage increase. We will not negotiate a plan that sacrifices new hires and retirees and shifts unreasonable costs to active employees.
CWA members are pleased by BellSouth's strong performance. We're shareholders too, and our skill, training and productivity are what have made BellSouth so successful. BellSouth's net profits have increased 46.7 percent since 2001, to $3.6 billion. CWA workers in 2003 produced a profit of $47,224 per employee, a 69.6 percent increase over 2001.
BellSouth's excellent customer service, a key factor in its profits, has been documented by the American Customer Satisfaction index, conducted by the University of Michigan Business School. In the index, BellSouth has ranked number one among telecom companies for the past consecutive 10 years.
The same company that has posted productivity gains of 8.5 percent since 2001, a low debt ratio and the strongest bond rating in the industry has told our members that it must have concessions in health care. The same company that has increased dividends by 42 percent over the past nine quarters refuses to increase benefits for retirees, many of whom earn poverty-level pensions.
CWA is determined to reach a fair contract, one that reflects the contributions of active and retired members in building a successful company.
###