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On Strike Since June, ALLTEL Kentucky Members May Be Headed Back to Work
Striking members of Kentucky Locals 3371, Ashland, and 3372, Lexington, were voting on a proposed settlement with ALLTEL as the CWA News went to press.
The three-year contract, with annual wage hikes of 3.5 percent, would end the summer-long strike.
The company backed off 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.
"If ratified, this will be by far one of our better agreements with ALLTEL," said Jimmy Gurganus, CWA vice president for Telecommunications.
The pact is stronger than 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.
The former Verizon workers are bitter about many of ALLTEL's demands, including attempts to severely cut employer-paid health care, including fully paid health premiums.
Under the proposal, ALLTEL will pay 85 percent of premiums. The company 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. Instead, retirees will join the company's PPO plan, with ALLTEL paying 75 percent of the cost in 2004, 65 percent in 2005 and 55 percent in 2006.
"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 since going on strike June 7 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.
CWA sought and obtained a public service commission ruling that ALLTEL failed to honor the contract it inherited from Verizon as it had promised as a condition of approval for the acquisition, filed charges with the National Labor Relations Board that the company failed to bargain in good faith and called in a federal mediator who facilitated further, tough negotiations.
CWA was able to turn back company proposals for a restrictive management rights clause, doing away with an overtime penalty that had been won in arbitration, freezing the pension plan and eliminating its 30-and-out, lump sum and points system provisions.
The members' 401(k) plan remains, though ALLTEL will discontinue employer contributions.
The three-year contract, with annual wage hikes of 3.5 percent, would end the summer-long strike.
The company backed off 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.
"If ratified, this will be by far one of our better agreements with ALLTEL," said Jimmy Gurganus, CWA vice president for Telecommunications.
The pact is stronger than 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.
The former Verizon workers are bitter about many of ALLTEL's demands, including attempts to severely cut employer-paid health care, including fully paid health premiums.
Under the proposal, ALLTEL will pay 85 percent of premiums. The company 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. Instead, retirees will join the company's PPO plan, with ALLTEL paying 75 percent of the cost in 2004, 65 percent in 2005 and 55 percent in 2006.
"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 since going on strike June 7 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.
CWA sought and obtained a public service commission ruling that ALLTEL failed to honor the contract it inherited from Verizon as it had promised as a condition of approval for the acquisition, filed charges with the National Labor Relations Board that the company failed to bargain in good faith and called in a federal mediator who facilitated further, tough negotiations.
CWA was able to turn back company proposals for a restrictive management rights clause, doing away with an overtime penalty that had been won in arbitration, freezing the pension plan and eliminating its 30-and-out, lump sum and points system provisions.
The members' 401(k) plan remains, though ALLTEL will discontinue employer contributions.