Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
Unions Reach Settlement With Lucent Technologies on Behalf of 44,000; Pact Comes After Brief Strike
A strike against Lucent Technologies that began at midnight last night was short-lived when unions representing 44,000 workers reached settlement on a new national labor contract early this morning.
The key to reaching agreement was Lucent's withdrawal of its demand to shift health care costs to retirees, reported Vice President James Irvine, chief negotiator for the Communications Workers of America (CWA). " That was the final issue separating us," he said, noting: " We simply were never going to allow the company to abandon the men and women who have built this tremendously profitable enterprise over the years."
CWA President Morton Bahr noted that, " These were tough negotiations, and our bargaining teams deserve congratulations for their professionalism and perseverance in winning an outstanding agreement that our members deserve. It's a fair agreement in line with Lucent's success, it gives the company long term labor stability, and recognizes that its skilled union workforce is a major competitive asset."
CWA represents 25,000 Lucent workers and the International Brotherhood of Electrical Workers represents another 19,000. The two unions bargained jointly. The new agreementsubject to ratification of union memberswill run for five years.
Among highlights of the pact, Irvine spotlighted improvements in job security and job mobility and access to new jobs at future businesses, along with wage and benefit improvements " that recognize the skills and the high productivity that our members bring to Lucent Technologies."
Base wage increases amount to an average of 18.7 percent compounded over five years, and the pact calls for cost-of-living adjustments in the 4th and 5th years in the event of an inflation surge.
Upon ratification, workers will receive a bonus of $1,000 in Lucent stock. Additional $500 stock bonuses will be paid in February and August of 1999. Also negotiated was a new performance reward program expected to deliver $1000 or more each year in bonuses if company performance targets are met.
Pension benefits will be improved by 20 percent over the contract term. Health benefits were improved for both active and retired workers. Among other highlights are improvements in family programs to provide grief counseling and help with living wills and up to eight hours paid leave per month for community service activities.
Lucent agreed to recognize the union based on expedited consent elections at all future acquisitions and joint ventures.
Negotiations are continuing at local unit tables with a deadline of June 6, after which the national and local settlements will be put to members for ratification.
The key to reaching agreement was Lucent's withdrawal of its demand to shift health care costs to retirees, reported Vice President James Irvine, chief negotiator for the Communications Workers of America (CWA). " That was the final issue separating us," he said, noting: " We simply were never going to allow the company to abandon the men and women who have built this tremendously profitable enterprise over the years."
CWA President Morton Bahr noted that, " These were tough negotiations, and our bargaining teams deserve congratulations for their professionalism and perseverance in winning an outstanding agreement that our members deserve. It's a fair agreement in line with Lucent's success, it gives the company long term labor stability, and recognizes that its skilled union workforce is a major competitive asset."
CWA represents 25,000 Lucent workers and the International Brotherhood of Electrical Workers represents another 19,000. The two unions bargained jointly. The new agreementsubject to ratification of union memberswill run for five years.
Among highlights of the pact, Irvine spotlighted improvements in job security and job mobility and access to new jobs at future businesses, along with wage and benefit improvements " that recognize the skills and the high productivity that our members bring to Lucent Technologies."
Base wage increases amount to an average of 18.7 percent compounded over five years, and the pact calls for cost-of-living adjustments in the 4th and 5th years in the event of an inflation surge.
Upon ratification, workers will receive a bonus of $1,000 in Lucent stock. Additional $500 stock bonuses will be paid in February and August of 1999. Also negotiated was a new performance reward program expected to deliver $1000 or more each year in bonuses if company performance targets are met.
Pension benefits will be improved by 20 percent over the contract term. Health benefits were improved for both active and retired workers. Among other highlights are improvements in family programs to provide grief counseling and help with living wills and up to eight hours paid leave per month for community service activities.
Lucent agreed to recognize the union based on expedited consent elections at all future acquisitions and joint ventures.
Negotiations are continuing at local unit tables with a deadline of June 6, after which the national and local settlements will be put to members for ratification.