Bellsouth Internet Services (Local 3204) Final Bargaining Report

Bellsouth Internet Services (Local 3204) have reached a tentative agreement.  Below are the details.  Vice President Dennis would like to thank the Bargaining Team for a job well done in bringing our members a contract they can be proud of.

Tentative Agreement
BellSouth Internet Services
2010 Contract Negotiations

Wages

• Base wages will be increased at the top rates of pay:

• This increase compounded over the three year term of the tentative agreement is more than 7.5 percent. 
• The progression steps will be increased between the existing start rate and the new top rate. 
• Employees in progression receive significant annual increases due to moving to a higher rate of pay every six months.  These employees receive an increase due to progressing up the wage scale and an increase due to the change in the wage scale rate. 
• The Company will pay a ratification bonus of $500.00 (less taxes and other witholdings) to all employees on the active payroll on the effective date of this agreement.

Health Care

• Changes in health care plans that would go into effect on January 1, 2011:
  
  • Monthly Premiums – prorated on biweekly basis

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  • Working spouse contribution (spousal carve out) will no longer apply in 2011 and 2012.  An employee will be allowed to cover his/her spouse under the family plan even if the spouse works for a company who offers insurance. 
  • The company will pay 100% of the cost of all eligible network preventative care, including items such as annual physicals and well-child care.
  •  Annual deductibles for network providers will be $350 for individuals and $700 for families. 
  • Coinsurance will be 10 percent for network providers which means after the deductible is met, the plan pays 90% until you reach the out-of-pocket maximum then the plan pays 100% of eligible charges.  Coinsurance will be 40 percent for non-network providers.
  • Annual medical out-of-pocket maximums for network providers will be $1,000 for individuals and $3,000 for families.
  • Adds a "CarePlus" option for 100% benefit coverage for specific approved treatments and conditions which are not standard coverage under health care plans but are promising or investigational treatments.  For employees who choose to participate, the projected monthly contributions in 2011 are $1 for individual and $2 for families.
• Employees may now participate in AT&T Flexible Spending Accounts allowing employees to pay eligible contributions and out-of-pocket health care expenses on a pre-tax basis.

Prescriptions

• Changes in prescription plan that would go into effect on January 1, 2011: 
  
  • Employees will pay the following co-pays for prescription drugs in 2011 and 2012:
    • Retail (up to 30-day supply): $10 generic, $20 formulary, $40 non-formulary
    • Mail Order (up to 90-day supply): $20 generic, $40 formulary, $80 non-formulary
      • Allows for prescription pick-up at CVS pharmacies for maintenance prescriptions required to be filled by mail order at no additional charge.
  • Out-of-pocket maximums for prescription drugs will be $900 for individuals and $1,800 for families.
  • No increases in 2012.

Dental and Vision

• No bargained changes for life of agreement.

Success Sharing Plan (replaces Annual Incentive Award Plan)

• This is a new cash bonus plan tied to the Company's performance
• Employees will receive a cash payout based on the stock appreciation value and 0n annual dividend equivalent payments in 2011, 2012 and 2013.
• In additional to regular employees, this cash bonus also covers temporary employees.
• An additional benefit for savings plan participants is that this money is eligible for savings plan deductions with the Company match.

Retirement

• Pension band increases of 2% in each of the three years of the agreement
• Effective 2010, moved pension increase date one month earlier to June (from July). 
• Ensured we continued the non-decreasing lump-sum pension payout option upon retirement.  The Pension Protection Act will be phased-in over a four year period beginning in 2012.
• Continued the BellSouth Savings Plan for current employees.
• New Hires will be eligible for AT&T Retirement Saving Plan (ARSP) & Bargained Cash Balance Program #2 (BCB2) beginning 1/1/2011.

Employment Security

• The Company may allow senior qualified volunteers within the title and exchange who perform substantially the same job functions to be paid a layoff allowance and separate from the Company prior to forcing layoff in inverse order of seniority.  The number of volunteers will be limited to the number of positions declared surplus in the title and exchange.
• Laid off employees will have the right to be recalled after the filling of vacancies under Article 7.  Laid off employees may submit up to six requests in their title in the state.  Requests will remain active for a period of four years from the date of layoff.
• Laid off employees may be offered any temporary vacancies for which they are qualified.  Acceptance of such vacancies will not affect their status as a laid off employee.
• Employees will now be able to participate in the National Transfer Plan so they can move between participating bargaining units within AT&T companies.   

Other Items

• Changed the two flexible vacation days to two flexible paid personal days to allow employees to maintain their vacation week(s).
• Added stepbrother and stepsister to the definition of immediate family for absences excused with pay.
• Cost of textbooks will now be included as an eligible expense under Tuition Aid Plan. Payments will be made directly to employees versus the institution.
• Changed the removal of personnel entries to 12 months for counseling, 24 months for warning and 36 months for all other entries.
• Renewed the agreement on excused time for union activity.
• Renewed the agreement that union activity (unpaid) time will be counted towards FMLA eligibility. 

The Company also agreed to the following changes in scheduling and time off practices:

• Schedules will be posted for two weeks.  The Local President will be notified if changes to this practice are made.
• A focus group will be put together 30 days after ratification to look at the process for soliciting voluntary overtime.  The focus group will consist of three Union and three Company participants.
• For more flexibility, requests for vacation will be considered when submitted.  The requirement to submit requests two weeks in advance will be discontinued.
• A vacation day in lieu of a holiday which occurs during a scheduled vacation week will now be selected along with personal paid days after the vacation selection process.