Alcatel-Lucent Installation Highlights of the Tentative Agreement

The Company and the Union reached a Tentative Agreement on CWA-25 late last night. The following are the highlights of that agreement. A full report will be discussed with the Local Presidents on Thursday in preparation for a ratification vote. Every member will get a full report before they vote:

• Duration of the Contract – 4 years expiring May 2018
• Wages – 2% in 2014 (retroactive t 5/25), 2% in 2015, 2% in 2016, 2% in 2017
• Signing Bonus payable if ratified $1000 for every installer (including CSIs)
• Pension Band increase 3% for future retirees effective 10/1/14

Benefits:

• Retiree benefits for current and future retirees extended to Dec. 2019 (3-year extension)

Active Medical Benefits

Premiums:

Single: 2015: $5 increase to $50 a month; 2016: $60; 2017: $70

Family: 2015: $20 increase to $80; 2016: $100; 2017: $120

NO deductible

Doctor’s visits co-pay: $35 2015, 2016, 2017

There are a few other modest increases in payments but this is an extremely low cost plan for our members considering the increases in the cost of Medical Care since 2004.

Improved Vision and Legal Plans which are now voluntary plans with premiums paid by the employees.

Some of the other items:

• No change in termination pay.
• No expansion of 7-day coverage.
• More time on Sundays for periodic trips home.
• No change in the length of the wage tables. The Company’s plan was to double the number of Progression Steps, meaning ACSTs would have taken 15 years to reach the top. (This was aimed primarily at the RITC.)
• The Daily mileage allowance will continue to be paid for over 10 miles (another change the Company intended that would have negatively impacted the RITC). The Daily miscellaneous allowance was eliminated but all mileage allowances were raised to IRS allowable or $.55, whichever is less (throughout the contract) which increases the transportation expense allowance. These changes will take effect 1/1/15.
• “Lead” pay consolidated to $7.00
• Per diems improved for 65 to 150 range.

“Effects” Bargaining Agreement

The Company has made it clear there will be reductions to the Installation Workforce in 2015 based on the Shift Plan. The Union does not have the ability to bargain over the Company’s decision to move forward with their plans. What we did have the ability to bargain were the “effects” of that decision on our members:

These are some parts of that agreement:

• An Enhanced SVTP offered nationwide after October, 2014 with an additional $10,000 in the lump increasing it to $20,000.
• Surplus CSIs will get 3 weeks termination pay.
• In bases which the Company depopulates employees will have a choice of the Enhanced SVTP or Permanent Transfer to a location that will remain populated. (PT relocation expenses will be a flat $20,000 if you sell a home and $10,000 if you do not.)
• No Permanent Transfers from bases that will remain populated.
• Once the last offer is made by the end of 2015:
• NO MORE PERMANENT TRANSFERS (except Special Condition Transfers) for the life of the agreement
• NO LAYOFFS for any installer with 10 or more years’ service for the life of the agreement.
• NO short timing in any base where there is a contractor within 90 miles.
• There are clearly many more details and changes in this agreement which will all be shared with you.

Your bargaining team believes this agreement is absolutely the best Contract we could achieve. If you look back on the bargaining reports you will see so many other retrogressions the Company wanted to accomplish that they did not.

Again we want to thank all the Locals and installers who took part in mobilization activities. This could not have been accomplished without you.

Your CWA Bargaining Team