Summary of
CWA-SBC National Bargaining Items
May 2004

Five-year contract, expires 4/4/09. 

Wages and Other Compensation

 Guaranteed Annual Wage Increases + Lump Sum Payments
In April of each year of the contract, 2004 through 2008, an across the board percentage wage increase will be applied to each step of the wage schedules, as follows:
April 4, 2004                  2.0
April 3, 2005                  2.5%
April 2, 2006                  2.5%
April 1, 2007                  2.25% + COLA
April 6, 2008                  2.25% + COLA

Lump Sum Payments
In addition to the base wage increases listed above, the agreement calls for a lump sum payment in 2004 and additional cash bonuses in 2006, 2007 and 2008, as follows:

April 2004   1% lump sum payment
April 2006   $250 cash bonus
April 2007   $375 cash bonus
April 2008   $375 cash bonus

Cost of Living Adjustment
A Cost of Living Adjustment (COLA), will be made to base wage rates effective April 2007 and April 2008.  If CPI increases more than 2.25%, the COLA will provide 0.7% of the amount of CPI in excess of 2.25%.  The COLA formula is as follows:

·        0.7% X (Consumer Price Index (CPI) – 2.25%)
·        The CPI index will be that for Urban Wage Earners and Clerical Workers (CPI-W)

·        The COLA effective in April 2007 will be based on the percentage difference between the CPI-W published for December 2005 and December 2006.

·        The COLA effective in April 2008 will be based on the percentage difference between the CPI-W published for December 2006 and December 2007.

Pension Benefits

Pension Band Increases for SWBT, Ameritech and Pacific Telesis bargaining units:

·        January 1, 2005:           3%

·        January 1, 2006            2.5%

·        January 1, 2007            2.5%

·        January 1, 2008            2.25% + COLA

·        January 1, 2009            2.25% + COLA

Lump Sum Distribution Option

• Lump sum distributions of monthly pension benefits were continued 
• The lump sum interest rate will use the average GATT rate from November of the prior year, beginning on January 1, 2005. 
• The same rate will apply for the entire calendar year.
• Laid off workers who take a lump sum and are rehired have the option to repay lump sum.
• The pre-retirement survivor benefit is continued.
• If the GATT rate ceases to be published, a joint CWA-SBC committee will protect the lump sum payout.

SNET Cash Balance Plan

• New promotion credits will increase pension benefits payable from the Cash Balance Plan for workers who move to higher paid jobs.
• Interest Credits will be the higher of 7%, or the prior year’s November average GATT rate plus 1.5%.
• Add pay brackets between $67,000 and $140,000 and will include commissions, lump sum wage payments, Team Performance Awards, Stock Appreciation payments.
• Fix CBA for 30 & out or age 55 with 20+ NCS. Account divided by 119.04, the factor which would apply to a retiree at age 65.
   

Health Plan Changes for Active Employees

Health Care Premiums
There are NO employee or retiree health care premiums. 

Working Spouse/Partner Surcharge
Contributions will be required for working spouses or partners who have access to coverage elsewhere and who decline that coverage. 

• The premium surcharge will be $40/month effective January 1, 2005.
• Working spouses/partners who earn $25,000 annually or less or whose health plan requires annual premium payments of $900 ($75 a month) or more will not be required to contribute.
• The surcharge does not apply if both husband and wife or partners are SBC employees unless one spouse or partner is eligible for the management health plan.

Overlapping Mental Health & Chemical Dependency (MH/CD) Benefits for HMO enrollees eliminated. Six months transition. 

Eligibility & Enrollment will be standardized. New hires will be eligible for plan coverage after 6-months. 

National Health Care Committee 
The existing regional joint health care committees continue and a National Committee is established

Prescription Drug Plan
The prescription drug plan has been restructured.  There are three copays for drugs bought at retail network pharmacies: generic, on the formulary or non-formulary.  The mail order copays are twice the retail copays, but the supply is up to 90 days, versus 30 days.  This new redesign is intended to encourage use of generic drugs and mail order: 

Copays for In-Network
Retail Prescription Drugs (30-day supply)

Out of Network Retail Prescription Drugs (30-day supply):
Annual $50 deductible. Participant pays the network copay or the balance of the prescription costs after plan pays 75%.

Mandatory Mail Order for Maintenance Drugs
Maintenance prescriptions are required to be filled through the mail order after one refill.  We get 3 months supply for two copays.  Specialty pharmacy for special drugs.

Mandatory Generic
If generic exists and brand selected, then you pay generic copay plus the difference between brand and generic.  Documentation by doctor can confirm that must use brand.

Annual Drug Out of Pocket Maximum of $750/individual and $1500/family

Appeals Process in place in order to pay lower copay rate when non-formulary drug is medically necessary.

New PPO Network for the SNET Region mirrors successful Midwest PPO.

Doctor Office Visits (PPO and POS plans)

·        $15 per visit copay effective 1/1/05

·        $20 per visit copay effective 1/1/07

·        in areas where higher copays already apply, those copays will remain in effect until the new copays meet or exceed.

Hospital Emergency Room Copays (PPO and POS plans)

·        $50 effective 1/1/05

·        $75 effective 1/1/08

·        in areas where higher copays already apply, those copays will remain in effect until the new copays meet or exceed

Dental Plan Improvements 
Effective January 1, 2005 reimbursements for schedule B services will be increased 5%.

Health Plan Changes for Retirees
This was extraordinarily difficult.  Retiree health is not a mandatory subject of bargaining, and the company refused to bargain.  CWA persisted and blocked unilateral changes by the company.  We also won cash payments to retirees that
should compensate for the higher copays.

Some of the key changes include:

No premiums for retirees during the term of the contract.

Company contribution caps lifted to $9000

Company to contribute $2 billion into VEBA for retirees.

Medical Plan changes
New Plan Copays:

·        Emergency Room copay: $75

·        Office visit copays:

o       2005:  $15

o       2007:  $25

o       2009:  $30

·        In-patient hospital admission copay:

o       2006:   $100

o       2008:   $200

Prescription Drug Benefits

·        3-tier plan: generic, formulary, non-formulary

o       $50 annual deductible

o       retail copays (30-day supply): $10/$20/$40  

o       mail order copays (90-day supply): $20/$40/$80

o       mandatory mail order for maintenance drugs

o       Mandatory generic

o       A specialty pharmacy program for certain high cost prescriptions.

o       New out of pocket maximum:

·        2005: $750 individual/$1,500 family

·        2009: $1,500 individual/$3,000 family

·        non-formulary copays do not count toward maximum (93% of non-formulary drugs have a generic or formulary alternative)

 In 2009 an optional PPO will be offered with the following features: 

·        upfront deductible of $250 individual/$750 family

·        out of pocket max $1,500 individual/$4,500 family

·        coinsurance level of 90/10% for most services

·        office visit copay: $20

·        copays for some services (deductible/coinsurance does not apply)

Retiree Bonuses
All retirees shall receive annual bonuses in the following amounts:

·        12/31/2004:   $1250

12/31/2005:   $1250

Jobs

 
Laid Off Workers will be offered jobs within 6 months; includes some 600 workers in Districts 4 & 6.

Employment Security

• Amended provisions of the Employment Security Commitment (ESC) in order to prevent layoffs for 5 years for current employees. 

Bringing Contracted Work Back to the Bargaining Unit
 

• Tier 2 Customer Contact/Technical Support:  CWA represented employees will do all Tier 2 customer contact/technical support work.
• Video:  SBC will recognize CWA, and a video contract will be negotiated. 
• Tier 1 Customer Contact/Technical Support:  CWA and SBC will work to bring Accenture tech support work to CWA unit when Accenture contract expires in 2007. 
• Telemarketing: The SBC-CWA President’s Council will discuss bringing outbound telemarketing jobs into the bargaining unit.
• Buried Service Wire:  The company and the union will negotiate a separate collective bargaining contract for buried service wire work. 

Representing Work in Evolving Technologies

Fiber to the Premise: 

• CWA core members will do fiber to the premise work. 
• Customer premise work will be performed by SBC employees under CWA core contracts or DataComm contracts. 

WiFi: 

• SBC expects to expand WiFi work of CWA-represented employees. 

VoIP: 

• As the public switched telephone network transitions from switched circuits to VoIP, core technicians will transition with the work. 
• Technicians will receive training to make that transition possible.
• VoIP will be done under Datacomm contracts.
• Comparable work performed today by CWA will be performed for VOIP technology.

Expanding Union Jobs in SBC Subsidiaries

Inter-Subsidiary Movement and Service Credit:  Employees may transfer to any 100% owned subsidiary and carry service credit for benefits (e.g.vacations) at new company.

Global Services/Datacomm

Global Services/Datacomm work done today by bargaining unit employees will continue per applicable contract.

Successorship

CWA won for the first time a successorship clause that requires SBC, if it chooses to sell any of its represented properties, to make as a condition of the sale the assumption of the union contract and the employees.  The buyer would have the right to negotiate a new contract of equal value.  However, the existing contract would remain in effect pending those negotiations.  With the uncertainties in the industry, this clause could provide real employment security.

DISTRICT 9 LOCAL ITEMS

·        Article 2:

·        Section 2.04C Improve Retreat Rights

·        Section 2.04 (AUTS) Add clarifying language that the 50% rule will be zeroed out at the expiration of each contractual cycle. 

·        Section 2.04E (Mini-Transfers) Clarification on mini-transfers for operator services. 

·        Section 2.05B (Force Rearrangements)Improvement in Force rearrangement. 

·        Section 2.05C (Force Balancing) Limited return rights to reassigned employees under force balancing. 

·        Section 2.06 (Force Movement)  declare surplus at the Presidential entity.

·        Establish a joint skill process committee.

·        Article 4: Occupational Job Evaluation Reclassifications resulting in upgrades will not result in a decrease of pay and employees will be allowed full wage experience credit in progression or at maximum on the old wage schedule.

·        Article 5: Per Diem increased to $35.00

·        Article 6: Expanded definition of immediate family

·        Article 8: Include all differentials in the layoff allowance formula.

·        Title Upgrades:

·        Splicing Technicians in the Statewide Antenna Crew upgraded to Antenna Technician WS-30,

·        Sacramento SOC – Staff Associates upgraded to Order Writer WS-6

·        Horizons: Fund the horizons program through the life of the contract.

·        Home Dispatch: MOA to establish Voluntary Home Dispatch Trial.

·        MOA’s: Continue all key MOA’s including ERB, with their current terms.

• No regressions-ERB retained despite strong company opposition, Reassignment Pay Protection Plan (RPPP) (another high priority company target) unchanged, Sickness Absence payment (the company wanted a limitation of 5 days/year) unchanged, Shift Premium (company wanted premium only for hours worked after 7:00 PM) unchanged, Sunday + 4 ( company wanted to eliminate) unchanged, Company proposed Mandatory part-time for maintained surplus unchanged, Company wanted shorter grievance procedure unchanged, Concessions unchanged, Company wanted to eliminate President's Day Holiday unchanged, Company wanted to eliminate carry-over vacation (Company right to schedule your vacation) unchanged, Company wanted automatic implementation of incentive plans unchanged. Team Award, unchanged.

Check the Unity @ SBC website www.cwa-union.org/sbc for reports from the National Bargaining Table in Washington D.C.