Telecom News - Embarq Slashes Health Care for Retirees

August's mobilization by Embarq members and retirees drew extensive media coverage of the company's termination of retiree health benefits for Medicare-eligible pensioners.

"With all the years we've given to the company, we can't imagine they'd treat retirees like this," Irene Hamric told David Donald, a reporter for www.dailycommercial.com. "We don't know what we're going to do. The cost of our prescriptions has really mushroomed."

Hamric has suffered from rheumatoid arthritis for 48 years. Two years ago, her husband Gerald underwent a heart attack.

Before Embarq announced the change, the Hamrics paid less than $100 for a three-month supply of their medications. They expect those costs to soar.

Organizing a rally to protest health care cuts amounting to an average of $2,000 a year for about 200 Embarq retirees in Central Florida, Local 3176 President Bob Campbell told Donald, "We're going to put Embarq on notice. We're not going to take it lying down."

Several local daily and weekly newspapers covered demonstrations in North Carolina, Tennessee, Virginia, Ohio, Pennsylvania, Florida, New Jersey, Oregon and Washington, where Embarq members and retirees were joined by local officials and labor leaders to draw attention to the draconian cuts.

By slashing coverage for 14,000 union and management retirees and dependents — Embarq, the former Sprint local telephone company — says it will save $30 million a year.

Jimmy Gurganus, CWA vice president for telecommunications, and CWA President Larry Cohen subsequently met with management to seek alternatives that would let the company maintain both profitability and retiree health benefits.

"We all understand that medical costs are soaring, but abandoning commitments to our most vulnerable seniors is not the answer," Gurganus said. "We invite Embarq to join us in pushing for a national solution to this national problem rather that joining the low-road employers that are adding to the ranks of Americans who can't afford good health care."

Talks between the union and company are continuing.