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SBC Pays Big Bucks in Overtime Settlement

Several CWA local presidents in California have checks from SBC Communications totaling $1,052,579 that they will be distributing to 267 members who prevailed in the arbitration of a wage settlement agreement.

"This landmark decision would not have been possible without the hard work and perseverance of all involved - locals and international staff - as well as the skill of our District 9 counsel, Judy Belsito," said District 9 Vice President Tony Bixler. "Most importantly, this settlement shows what can be achieved when we work together and confront employers who harm our members. Congratulations to all of us for a job well done."

An earlier round of grievances had produced a settlement agreement that allowed Pacific Bell/SBC to give wage incentives to new hires under "tight labor market" conditions without their having the usual prior experience, as long as co-workers already on the job where these new hires were placed, received additional wages to match the step of the new hires.

This agreement also called for retroactive pay for workers already on the job, from the time the new hires arrived to the date of the settlement. The goal was to raise workers' pay to at least the wage step of the new hires and reimburse them for the time they had been working and should have been paid at the same step as the new hires.

The new grievance that produced this million dollar settlement resulted from SBC's refusal to include overtime pay in the retroactive payments to the affected employees.

Several locals put together the grievance, retired Area Director Vira Milirides testified as to the particulars of the original settlement agreement and Judy Belsito represented the union before arbitrator Thomas Angelo. The arbitrator determined on Nov. 27, 2002 that, "the term 'wages earned' in the settlement agreement must be construed to include overtime earnings in calculating retroactive pay."

"Who in their right mind would think that pay for overtime was not part of wages?" said Louie Rocha, president of Local 9423 in San Jose. He called the decision "justice served. The company violated the contract and backpedaled and was found by the arbitrator to have violated it twice." About 100 members of Local 9423 will benefit from the disbursements, which range from $2.67 to $12,521, and average about $3,780.

Ellie Benner, president of Local 9430 in Foster City, has about 30 members who will benefit. She rejoiced with local Steward Steve Matos, who received close to $12,000. "He's just gotten married and this is really going to help him," Benner said.