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Lucent Talks Focus on Health Care Issues
In early bargaining with Lucent Technologies, CWA is working to reach a 24-month agreement that will enable workers and the company to survive the current meltdown in telecommunications.
Health care costs for active and retired workers have been a major focus, CWA's bargaining team reported. Lucent's proposals include major changes in office visit co-pays, prescription drug plan co-pays, increased annual deductibles for the indemnity plan and major changes in the current pharmacy network.
CWA went into early talks with the goal of protecting out-of-pocket health care premium costs and is determined to safeguard the health security of all workers, said CWA Vice President Ralph Maly, communications and technologies.
Lucent's financial situation also affects retiree health care. Because the pension plan had been funded at a level exceeding 125 percent of obligation, the extra funds could be used to help pay retiree health care costs. CWA was notified that a $360 million transfer was made last week from the pension fund to pay for retiree benefits for 2003; however, this will be the last foreseeable transfer since the plan is now funded at below the 125 percent level.
Lucent has been hit especially hard by the economic downturn because its customers - telecom companies - have curbed spending and aren't buying the products and services that Lucent supplies. CWA President Morton Bahr has contacted all major telecom companies, urging them to move up capital expenditures and do business with Lucent, but the companies stress that they also are suffering from the economic slowdown as well as from regulatory constraints that force them to provide phone lines to competitors at below-cost wholesale rates.
If an early agreement is not reached by the end of October, talks will resume next April.
Health care costs for active and retired workers have been a major focus, CWA's bargaining team reported. Lucent's proposals include major changes in office visit co-pays, prescription drug plan co-pays, increased annual deductibles for the indemnity plan and major changes in the current pharmacy network.
CWA went into early talks with the goal of protecting out-of-pocket health care premium costs and is determined to safeguard the health security of all workers, said CWA Vice President Ralph Maly, communications and technologies.
Lucent's financial situation also affects retiree health care. Because the pension plan had been funded at a level exceeding 125 percent of obligation, the extra funds could be used to help pay retiree health care costs. CWA was notified that a $360 million transfer was made last week from the pension fund to pay for retiree benefits for 2003; however, this will be the last foreseeable transfer since the plan is now funded at below the 125 percent level.
Lucent has been hit especially hard by the economic downturn because its customers - telecom companies - have curbed spending and aren't buying the products and services that Lucent supplies. CWA President Morton Bahr has contacted all major telecom companies, urging them to move up capital expenditures and do business with Lucent, but the companies stress that they also are suffering from the economic slowdown as well as from regulatory constraints that force them to provide phone lines to competitors at below-cost wholesale rates.
If an early agreement is not reached by the end of October, talks will resume next April.