CWA - Avaya Bargaining Report #2

If today is any indication, Avaya’s greed is only exceeded by their arrogance.

Avaya came to the table this morning with their proposal on Retiree Pensions and Healthcare.  The Company presented many pages of skewed data and was not prepared to respond to questions making the bargaining session even more frustrating. 

As late as 2003 the Occupational Pension Plan was funded at 108%.  Today, during bargaining the Company announced the Pension Plan is currently funded at 83.6%.  The Company offered no explanation for the loss of hundreds of millions of dollars except to say that it was not a result of mismanagement.  The Company further claimed that they would be required to make contributions to the Pension Plan in the near future.  Avaya used this information as a preface to their insulting proposals for both the Pension Plan and Retiree Health Care.

Avaya proposed no increase to the pension bands and as well as the elimination of death benefits.  The Company’s health care proposal included such cost shifting changes as increased office visit co-pays for Primary Care Physician (non-specialist) from $15 to $30 in 2007 and 2008 and then to $35 in 2009.  That is an increase of 100% overall.  Medical co-insurance went from 100% coverage to a 70/30 split with the retiree paying 30%.  In addition, the Company proposed that the “Future Negotiation of Retiree Medical Caps” letter in the contract be terminated. 

In addition, the company’s ultimate insult was a proposal that gave retirees an option of premiums of $500 a month by 2009 with the cost shifting proposals; or without the cost shifting proposals, over $1000 a month in premiums by 2009.  The Unions expressed grave concerns to Avaya across the table on the impact these proposed changes would have on retiree’s standards of living and on a retiree’s ability to care for their medical well being and for that of their family.  These proposals from Avaya would have far-reaching effects on retirees.

The Unions requested extensive documentation to review the financial numbers from the company’s proposal.

Obviously, your bargaining team will give these proposals the consideration they deserve and respond.

Our next formal meeting is scheduled for 10:00 am tomorrow.  Updates will be posted as they develop.

In Unity, 

Your Bargaining Team