CWA Charges Embarq's Slashing of Retiree Health Care is Illegal

CWA this week filed unfair labor practice charges with the NLRB against Embarq, contending the company's announced plan to slash retiree health benefits for future as well as current retirees is a unilateral change that ignores its obligation to bargain with the union.

The company earlier announced that it would drop retiree health benefits entirely for employees hired or rehired after Jan. 1, 2008, and further, that it was cutting health care for current retirees who are Medicare-eligible, as well as capping their life insurance at $10,000.  The latter cuts average $2,000 per year for each of the 14,500 retirees and dependents affected, both management and union.

The initial charges were filed in Tennessee and North Carolina and further charges will be filed in 11 other states where CWA represents Embarq workers.  The company was created last year as the spinoff of Sprint's local phone operations.