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CWA Calls SBC Health Cut Announcement 'Inflammatory,' Says Sides Remain Far Apart as Contract Deadli
WASHINGTON, D.C. -- As the deadline looms for mediated contract talks covering over 100,000 SBC employees, Communications Workers of America President Morton Bahr stated: "We're disappointed that SBC chose to issue an inflammatory press announcement about plans to shift hundreds of millions of dollars in health care costs to its retirees."
The company's proposal to cut health benefits and raise costs for both active and retired workers is "the most contentious issue in these negotiations," and was cited by Federal Mediation and Conciliation Service Director Peter Hurtgen in urging the parties to move national bargaining to Washington under the FMCS' auspices.
Four regional contracts covering the SBC employees expire on April 1 and April 3.
Citing recent news reports that SBC wants to raise retiree costs by as much as $600 million a year, Bahr said, "Media statements like this can only stir anger in our ranks and cloud the atmosphere surrounding these talks."
"Our members also are well aware that SBC's Chairman and CEO Ed Whitacre received a jump in his pay from $10.1 million in 2002 to $19.5 million in 2003," he said. "In justifying that generous increase, the company spokeswoman said that 'SBC had a great year operationally and his (Whitacre's) leadership had a lot to do with that.' But she made no mention of the role of our members, active and retired, in building SBC's success and contributing to that operationally great year."
Bahr also noted that SBC has yet to respond to CWA members' other major concerns over strengthening their employment security by gaining access to job growth areas as SBC moves into new ventures and technologies.
"We will only reach a settlement when SBC management is willing to discuss not just its own business concerns, but also the needs and interests of the frontline workers who build and maintain its network and generate the profits," Bahr stated.
Other issues being negotiated nationally in Washington, D.C. are wages and pensions. Meanwhile, bargaining over other issues is taking place in Pleasanton, Calif., (SBC West), Austin, Texas, (SBC Southwest), Chicago (SBC Midwest), and New Haven, Conn., (SBC East). The contract at SBC West expires April 1 and the others expire April 3.
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The company's proposal to cut health benefits and raise costs for both active and retired workers is "the most contentious issue in these negotiations," and was cited by Federal Mediation and Conciliation Service Director Peter Hurtgen in urging the parties to move national bargaining to Washington under the FMCS' auspices.
Four regional contracts covering the SBC employees expire on April 1 and April 3.
Citing recent news reports that SBC wants to raise retiree costs by as much as $600 million a year, Bahr said, "Media statements like this can only stir anger in our ranks and cloud the atmosphere surrounding these talks."
"Our members also are well aware that SBC's Chairman and CEO Ed Whitacre received a jump in his pay from $10.1 million in 2002 to $19.5 million in 2003," he said. "In justifying that generous increase, the company spokeswoman said that 'SBC had a great year operationally and his (Whitacre's) leadership had a lot to do with that.' But she made no mention of the role of our members, active and retired, in building SBC's success and contributing to that operationally great year."
Bahr also noted that SBC has yet to respond to CWA members' other major concerns over strengthening their employment security by gaining access to job growth areas as SBC moves into new ventures and technologies.
"We will only reach a settlement when SBC management is willing to discuss not just its own business concerns, but also the needs and interests of the frontline workers who build and maintain its network and generate the profits," Bahr stated.
Other issues being negotiated nationally in Washington, D.C. are wages and pensions. Meanwhile, bargaining over other issues is taking place in Pleasanton, Calif., (SBC West), Austin, Texas, (SBC Southwest), Chicago (SBC Midwest), and New Haven, Conn., (SBC East). The contract at SBC West expires April 1 and the others expire April 3.
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