CWA Opens Bargaining with OFS (Bargaining Report #1)

National Bargaining Report – Day 1

Opening session started at 1:15PM Monday, May 8, 2006 at CWA National Headquarters.

The day's meeting was dedicated to Opening Statements from the Company and the Union.

The Company presentation focused on the state of the business; health care costs, particularly the cost of retiree health care; and pension costs.

The Company's "state-of-business" presentation was based on OFS company-wide and not on just Norcross and Sturbridge operations.  Though the Company still struggles with profitability and break even, they have moved consistently closer to both factors over the past few years.  The Company's position is they struggle with profitability largely because of health care costs.  The Union's position on the Company's progressive movement toward profitability is directly related to the Membership accepting the concessions of three years ago.

The Company advised the Union they need to increase their market share in the United States as well as abroad for the overall success of the company.  The Union was advised the company is well positioned for future growth and their business is currently experiencing growth.

The Company's final statement on the state-of-business was they need the Union's assistance in addressing financial issues that hinder their growth.

A large portion of the Company's presentation was focused on the cost of health care and a comparison of health care costs for OFS with those of other industries.

Bill Bates, lead negotiator, gave the Union's opening statement.  Bill advised the Company that CWA is no stranger to negotiating health care plans with employers and is willing to work with OFS on health care issues, but we are not ready or willing to negotiate the total burden of health care costs on the represented employees and retirees.

Bill advised the Company that fair compensation, pensions, health care and working conditions are the foundations of all labor agreements and the Union doesn't expect the approach to these negotiations to be anything different.  Bill also stated there several unfinished items of business at the local level that must be resolved prior to any National Agreement.

The Company was reminded that CWA has proven a valuable partner for OFS business growth, citing the example of how CWA negotiated Preferred Provider status with Verizon.

Bill advised the Company their recent actions at the organizing campaign at the Carrollton, Georgia facility were unacceptable and worked only to force the Union to demand nothing less than a Cardcheck agreement for future OFS organizing events.

Bill concluded his opening statement by advising the Company that the Union looks forward to negotiating the upcoming contract with the Company, and reminded the Company that the Union can accept nothing less than a fair agreement for both parties that will provide for good jobs, good wages and good benefits for the future.