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.
Communications Workers, Lucent Technologies Reach Settlement
Washington, D.C. -- The Communications Workers of America reached a tentative 7 year, 7 month agreement with Lucent Technologies that achieves the union's goals of strengthening employment security while also greatly reducing the company's earlier demands for heavy health care cost-shifting of premiums to active employees and retirees.
The settlement also increases wages by a compounded 16.28 percent over the contract term, provides a $1,000 ratification bonus and includes a cost-of-living adjustment beginning in 2008. Pensions will increase by 12 percent in the first year of the contract. The contract remains in effect through May 2012.
"These have been tough negotiations because we were challenged to balance the realities of Lucent's financial situation, our desire for the company's long-term success, and our determination to protect the people who built the company from a devastating blow to their retirement security. We believe we have found the best compromise for both parties under difficult circumstances," said Ralph Maly, CWA vice president for communications and technologies.
"Health care costs in this country can no longer be resolved through collective bargaining," Maly added. "It's become a band-aid approach. There must be a national solution to the health care crisis because we simply cannot continue to shift these escalating costs to workers. What we have done in this agreement will help ensure the survival of health care coverage for our members and retirees," he said. Lucent has 120,000 union-represented retirees and dependents and only 3,400 active union workers.
For retirees, the settlement calls for some increases in medical co-payments and deductibles, and requires them to share the cost of premiums beginning in 2005. Pre-age-65 single retirees will contribute 3 percent of their monthly pension rate for health care, or about $28.50 on average. Family coverage for pre-age- 65 retirees will be 5 percent of the monthly pension rate, about $47.50 on average. Post-age-65 retirees will pay 2 percent of their monthly pension for single coverage and 4 percent of their monthly pension for family coverage. Contributions for both groups will increase by one half of one percent per year over the contract term. Workers who retired prior to March 1, 1990 will continue to have employer paid premiums.
This is far less than Lucent's initial proposals which sought to shift as much as $700 a month in family premium costs to retirees.
A jointly administered VEBA trust fund was established to help defer future retiree health care liabilities; Lucent will be obligated to contribute $400 million to this fund over the life of the contract, with an additional $29 million coming from existing VEBA in fiscal 2005.
For active workers, there will be some increases in co-pays and deductibles, in addition to premium contributions phased in over the contract term and reaching a maximum of $45 per month for single coverage and $60 for a family.
Maly said the agreement includes, among other items, a no-layoff guarantee for installers and opens up new job opportunities within installation. "The CWA represented workforce brings real value to Lucent. We want Lucent to succeed and that can best happen when Lucent uses the skills of our members to attract new customers and grow the business," he said.
Maly expressed CWA's appreciation for the assistance of the Federal Mediation and Conciliation Service, and Director Jack Sweeney who was personally involved in the talks.
###
The settlement also increases wages by a compounded 16.28 percent over the contract term, provides a $1,000 ratification bonus and includes a cost-of-living adjustment beginning in 2008. Pensions will increase by 12 percent in the first year of the contract. The contract remains in effect through May 2012.
"These have been tough negotiations because we were challenged to balance the realities of Lucent's financial situation, our desire for the company's long-term success, and our determination to protect the people who built the company from a devastating blow to their retirement security. We believe we have found the best compromise for both parties under difficult circumstances," said Ralph Maly, CWA vice president for communications and technologies.
"Health care costs in this country can no longer be resolved through collective bargaining," Maly added. "It's become a band-aid approach. There must be a national solution to the health care crisis because we simply cannot continue to shift these escalating costs to workers. What we have done in this agreement will help ensure the survival of health care coverage for our members and retirees," he said. Lucent has 120,000 union-represented retirees and dependents and only 3,400 active union workers.
For retirees, the settlement calls for some increases in medical co-payments and deductibles, and requires them to share the cost of premiums beginning in 2005. Pre-age-65 single retirees will contribute 3 percent of their monthly pension rate for health care, or about $28.50 on average. Family coverage for pre-age- 65 retirees will be 5 percent of the monthly pension rate, about $47.50 on average. Post-age-65 retirees will pay 2 percent of their monthly pension for single coverage and 4 percent of their monthly pension for family coverage. Contributions for both groups will increase by one half of one percent per year over the contract term. Workers who retired prior to March 1, 1990 will continue to have employer paid premiums.
This is far less than Lucent's initial proposals which sought to shift as much as $700 a month in family premium costs to retirees.
A jointly administered VEBA trust fund was established to help defer future retiree health care liabilities; Lucent will be obligated to contribute $400 million to this fund over the life of the contract, with an additional $29 million coming from existing VEBA in fiscal 2005.
For active workers, there will be some increases in co-pays and deductibles, in addition to premium contributions phased in over the contract term and reaching a maximum of $45 per month for single coverage and $60 for a family.
Maly said the agreement includes, among other items, a no-layoff guarantee for installers and opens up new job opportunities within installation. "The CWA represented workforce brings real value to Lucent. We want Lucent to succeed and that can best happen when Lucent uses the skills of our members to attract new customers and grow the business," he said.
Maly expressed CWA's appreciation for the assistance of the Federal Mediation and Conciliation Service, and Director Jack Sweeney who was personally involved in the talks.
###