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CWA in Talks with Lucent on Spin Off of Three Businesses
CWA officials have been meeting with Lucent Technologies management to gather details on the company’s recently announced plan to spin off its PBX, business cabling and LAN-based data businesses as a new $8 billion independent corporation.
CWA Communications and Technolo-gies Vice President Jim Irvine reported that the union was notified of the move early on March 1, just before Lucent made a broad public announcement.
“We need a lot more information before we know exactly what our reaction is,” he said, shortly after the announce-ment, “but assuming that Lucent follows provisions of our collective bargaining agreements to the letter and works with us — as they’ve said they will — we should be fine.” Irvine noted that CWA has had good relations with former Lucent Chairman Henry Schacht, who will be chairman of the yet-to-be-named new corporation.
The new company “will rank No. 1 or No. 2 in nearly every market in which it competes,” Lucent stated in its announcement. The company said it hoped to complete the spinoff by September 30, 2000. No action is expected before July 1.
“Therefore, we’ll have plenty of time to report planned developments to our members before they occur,” Irvine said.
Chairman and CEO Richard McGinn stated: “With this move, Lucent will focus on extending its leadership in the highest growth areas of communications networking. By spinning off our PBX, SYSTIMAX cabling and LAN-based data businesses, we are sharpening Lucent’s focus and creating another leading company to serve business customers.”
CWA and International Brotherhood of Electrical Workers leaders recently met with Don Peterson, who has been named CEO of the new company, receiving assurances that he sees unions as part of the environment at the new company and is open to recommendations from the unions about the business direction, Irvine said.
Peterson told the unions that research previously conducted by a joint union/ management committee concerning Lucent’s BCS Services organization will be reviewed closely. What portion of BCS may be sold outright or spun off to the new company has not been decided. CWA represents about 6,000 customer service engineers in BCS nationwide and 1,000 service representatives at Lucent’s customer care centers.
Irvine said the union has received assurances stating that the Lucent Transfer Program will be available to CWA members desiring to transfer to other parts of the company “in accordance with the applicable provisions of the collective bargaining agreement,” and “in general, the ‘follow your work principle’ will apply in assigning represented employees to the new spinoff company.”
“While it’s very anxiety producing,” said Irvine, “we’ve been through this process twice before: once during the AT&T divestiture in 1984 and again with Lucent in 1996. We’re in on the ground floor of this restructuring and will stay in close touch with the company to best represent the interests of our members.”
CWA has approximately 28,000 members at Lucent and the IBEW has another 24,000. Further meetings between Peterson and the unions are tentatively scheduled for April and June.
CWA Communications and Technolo-gies Vice President Jim Irvine reported that the union was notified of the move early on March 1, just before Lucent made a broad public announcement.
“We need a lot more information before we know exactly what our reaction is,” he said, shortly after the announce-ment, “but assuming that Lucent follows provisions of our collective bargaining agreements to the letter and works with us — as they’ve said they will — we should be fine.” Irvine noted that CWA has had good relations with former Lucent Chairman Henry Schacht, who will be chairman of the yet-to-be-named new corporation.
The new company “will rank No. 1 or No. 2 in nearly every market in which it competes,” Lucent stated in its announcement. The company said it hoped to complete the spinoff by September 30, 2000. No action is expected before July 1.
“Therefore, we’ll have plenty of time to report planned developments to our members before they occur,” Irvine said.
Chairman and CEO Richard McGinn stated: “With this move, Lucent will focus on extending its leadership in the highest growth areas of communications networking. By spinning off our PBX, SYSTIMAX cabling and LAN-based data businesses, we are sharpening Lucent’s focus and creating another leading company to serve business customers.”
CWA and International Brotherhood of Electrical Workers leaders recently met with Don Peterson, who has been named CEO of the new company, receiving assurances that he sees unions as part of the environment at the new company and is open to recommendations from the unions about the business direction, Irvine said.
Peterson told the unions that research previously conducted by a joint union/ management committee concerning Lucent’s BCS Services organization will be reviewed closely. What portion of BCS may be sold outright or spun off to the new company has not been decided. CWA represents about 6,000 customer service engineers in BCS nationwide and 1,000 service representatives at Lucent’s customer care centers.
Irvine said the union has received assurances stating that the Lucent Transfer Program will be available to CWA members desiring to transfer to other parts of the company “in accordance with the applicable provisions of the collective bargaining agreement,” and “in general, the ‘follow your work principle’ will apply in assigning represented employees to the new spinoff company.”
“While it’s very anxiety producing,” said Irvine, “we’ve been through this process twice before: once during the AT&T divestiture in 1984 and again with Lucent in 1996. We’re in on the ground floor of this restructuring and will stay in close touch with the company to best represent the interests of our members.”
CWA has approximately 28,000 members at Lucent and the IBEW has another 24,000. Further meetings between Peterson and the unions are tentatively scheduled for April and June.