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New Pact Ends Strike at ALLTEL, Kentucky
Members of Locals 3371, Ashland, and 3372, Lexington, Ky., were preparing to return to work on Oct. 6, after ratifying a contract bringing wage increases of 3.5 percent in each of three years. The ratification ends a summer-long strike that began June 8.
The company backed off, at least in part, from earlier demands on contracting out work, sickness and disability benefits and changes to the pension plan, and agreed to credit strike time toward seniority for retirement and pension eligibility.
Jimmy Gurganus, CWA vice president for Telecommunications, characterized the pact as "by far, one of our better agreements with ALLTEL."
The contract is stronger than four-year agreements in place at other ALLTEL locations even though the company, which acquired its Kentucky facilities and former contract from Verizon last year, considers it a "first contract" with the union, CWA Representative Judy Dennis said.
Former Verizon workers' bitterness about some of ALLTEL's demands, particularly concerning health care, was one factor that led to the strike. The workers used to have fully paid health benefits.
Under the new contract, the company will pay 85 percent of premiums, and the workers, 15 percent. ALLTEL originally wanted workers to pay more than 40 percent of the cost of a family plan.
Similarly, the company wanted to pay a minimal percentage of retirees' health care costs. Instead, the new pact will bring retirees under the company's PPO plan, with ALLTEL paying 75 percent of the cost in 2004, 65 percent in 2005 and 55 percent in 2006.
CWA was able to turn back company proposals for a restrictive management rights clause, doing away with an overtime penalty the union won in arbitration, freezing the pension plan and eliminating its 30-and-out, lump sum and points system provisions.
"It's been such a difficult and trying process for our members in Kentucky," Gurganus said. "They have done an outstanding job of sticking together in the face of a company that has been trying to cut their benefits, and done an outstanding job of mobilizing their members and working with elected officials in the state."
Local 3371 President Phil Coldiron and Local 3372 President Mike Garkovich led bargaining units totaling about 450 workers. Members maintained a constant presence on picket lines and put together several mass rallies at both ALLTEL locations. The mayors of both Ashland and Lexington and other elected officials spoke out about widespread customer support for the workers and impatience with a company unable to provide quality service during the strike.
The company backed off, at least in part, from earlier demands on contracting out work, sickness and disability benefits and changes to the pension plan, and agreed to credit strike time toward seniority for retirement and pension eligibility.
Jimmy Gurganus, CWA vice president for Telecommunications, characterized the pact as "by far, one of our better agreements with ALLTEL."
The contract is stronger than four-year agreements in place at other ALLTEL locations even though the company, which acquired its Kentucky facilities and former contract from Verizon last year, considers it a "first contract" with the union, CWA Representative Judy Dennis said.
Former Verizon workers' bitterness about some of ALLTEL's demands, particularly concerning health care, was one factor that led to the strike. The workers used to have fully paid health benefits.
Under the new contract, the company will pay 85 percent of premiums, and the workers, 15 percent. ALLTEL originally wanted workers to pay more than 40 percent of the cost of a family plan.
Similarly, the company wanted to pay a minimal percentage of retirees' health care costs. Instead, the new pact will bring retirees under the company's PPO plan, with ALLTEL paying 75 percent of the cost in 2004, 65 percent in 2005 and 55 percent in 2006.
CWA was able to turn back company proposals for a restrictive management rights clause, doing away with an overtime penalty the union won in arbitration, freezing the pension plan and eliminating its 30-and-out, lump sum and points system provisions.
"It's been such a difficult and trying process for our members in Kentucky," Gurganus said. "They have done an outstanding job of sticking together in the face of a company that has been trying to cut their benefits, and done an outstanding job of mobilizing their members and working with elected officials in the state."
Local 3371 President Phil Coldiron and Local 3372 President Mike Garkovich led bargaining units totaling about 450 workers. Members maintained a constant presence on picket lines and put together several mass rallies at both ALLTEL locations. The mayors of both Ashland and Lexington and other elected officials spoke out about widespread customer support for the workers and impatience with a company unable to provide quality service during the strike.