CWA Members Ratify Lucent Agreement

Washington, D.C. – Members of the Communications Workers of America at Lucent Technologies overwhelmingly ratified a seven year, seven-month agreement by a greater than 90 percent vote. The agreement covers 3,400 installers, technicians and other workers at the company.

The settlement 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. Pension bands will increase by 12 percent in the first year of the contract. The contract remains in effect through May 2012.

Key was CWA's ability to achieve its goals of strengthening employment security while greatly reducing the company's demands for health care cost shifting to active and retired workers. "Lucent's financial situation made it imperative that we find a solution that would help ensure the survival of health care coverage for our members and retirees," said Ralph Maly, CWA Vice President for Communications and Technologies.

Maly repeated his call for a national solution to the health care crisis, stressing that collective bargaining cannot resolve fast-rising health care costs or the inequities that exist among employers who provide quality coverage and those who choose to shift their responsibilities to others.

Under the agreement, active workers will see some increase in health care co-pays and deductibles, retired workers will share in the cost of premiums beginning in 2005, with those costs ranging from 2 percent to 4 percent of monthly pension, depending on retirement age and family status. Contributions will increase by one half of one percent per year over the contract term, and workers who retired prior to March 1, 1990 will continue to have employer paid premiums.

The agreement also provides for a no-layoff guarantee for installers and opens up new job opportunities within installation.