Final Bargaining Report Internet Services Inc.

COMMUNICATIONS WORKERS OF AMERICA

INTERNET SERVICES INC.

COMPENSATION

Tier 1 (Customer Assistants)

$600 Lump Sum for active employees upon ratification. This is an improvement from the first tentative agreement.

Tier 2

· 2007 – 3%

· 2008 – 2.5%

· 2009 – 2.5%

$500 Lump Sum for active employees upon ratification.

General wage increases for all wage schedules in Tier 2 are retroactive to July 22, 2007. Payment of retroactive wages for wage schedule increases will occur within 30 days following ratification.

Tier 2 - Team Award

Effective 2008, the Team Award will be modified for titles that currently have an 11% Team Award Target based on the following:

· Create new wage schedules for those titles by adding 5% to the base

· Lower the Team Award Target to 6%

5% will go into the base wage and no longer be at risk leaving the remaining 6% as a Team Award.

Discretionary Lump Sum Payments

Discretionary Lump Sum Payments are eliminated. The money was converted into lump sum payments for all titles.

UNION DUES

Union dues will continue to be deducted in a prorated amount from the Tier 2 Team Award. (This was a language change only).

COMPANY UNION RELATIONS

Increase the time off limit for unpaid Union activities from 200 hours to 250 hours per calendar year for each union representative and increase the number of Union representatives allowed to take up to 560 hours per calendar year of unpaid time off for union activities from 5 to 10. (This provision will increase availability of union representation for employees on the job).

CLASSIFICATION OF EMPLOYEES

Add part-time classification. (The availability of part-time work should provide the employer and employees greater flexibility).

TIER 2 - TITLE CHANGES

Effective July 22, 2007, the following changes will occur:

· Upgrade the WFM TSR II, (WS 11) to Support Administrator II (WS 13);

· Upgrade the NCG TSR II, (WS 11) to a new title, NCG Representative (WS 15);

· Upgrade Dispatcher (WS 4) by $50 per week to the top step, increasing all steps in the schedule by an average of 3.8% This is an improvement from the first tentative agreement;

· New title and wage schedule – Internet Assistant (WS 2);

· Place Surveillance Administrator on (WS 4);

· Place Surveillance Technician on (WS 13).

DEATH IN AN EMPLOYEE'S IMMEDIATE FAMILY/HOUSEHOLD

Definition for immediate now includes other persons living in the same household for purposes of granting paid time off.

ILLNESS ABSENCE

Change unscheduled time off to illness absence and increase paid illness absence to 6 paid days for employees with 7 or more years of Net Credited Service.

MEAL ALLOWANCE

Increase overnight travel meal expense reimbursement cap from $25 to $30 per day.

WORK SCHEDULES AND SENIORITY

When assigning work schedules, Net Credited Service will be the deciding factor. This is an improvement from the first tentative agreement.

SHIFT DIFFERENTIALS

Effective 1/01/09, modify the hours during which more than 50% of the time must fall for shift differential eligibility from 6:00 p.m. – 6:00 a.m. to 8:00 p.m. – 6:00 a.m. This is an improvement from the first tentative agreement.

LAYOFF

In the event of surplus and possible layoff of employees, the Company will meet with the Union to obtain input on its proposed layoff process prior to notifying affected employees.

Increase the notice to surplus employees designated for layoff from a minimum of 2 weeks to a minimum of 4 weeks.

Increase the amount of layoff allowance maximum from 4 weeks to 8 weeks of pay.

LAYOFF ALLOWANCE

LENGTH OF SERVICE	CURRENT LAYOFF ALLOWANCE	LENGTH OF SERVICE	NEW LAYOFF ALLOWANCE

0 -12 Months	1 week of pay	0 -12 Months	1 week of pay
13 – 24 Months	2 weeks of pay	13 – 24 Months	2 weeks of pay
25 – 47 Months	3 weeks of pay	25 – 47 Months	3 weeks of pay
48 – Months or more	4 weeks of pay	48 – 59 Months	4 weeks of pay
		60 – 71 Months	6 weeks of pay
		72 Months or More	8 weeks of pay

BENEFITS

The following changes have been made to the medical plan:

Effective January 1, 2009, Tier 2 employees will have a choice between two medical plan options: AT&T Medical Plan (Tier 1) and the AT&T Medical Plan (Alternative provisions option).

The AT&T Alternative Medical Plan highlights are:

No monthly contributions for employee coverage only;
Contributions for employee plus one will see a cost savings;
Preventative care visits are covered at 100%. For example, annual physicals, mammograms, colonoscopies, well visits, and cholesterol screenings are covered at no additional cost.

Below are the AT&T Alternative Medical Plan rates:

Employee	Current Plan	AT&T Alternative Medical Plan

Employee Only	$576	$ 0
Employee Plus One	$1,092	$732
Family	$1,728	$1,464

Effective January 1, 2009, the following New Hire Plan Provisions will apply to Tier 2:

0 – 6 Months

Access only to the Tier 1 AT&T Medical Plan

6 Months but less than 7 years

AT&T Medical Plan for Tier 1's

7 years or greater

Choice between:

AT&T Medical Plan for Tier 1
AT&T Medical Plan Alternative

Tier 1 Customer Assistants will retain their current medical plan.

GRIEVANCE PROCEDURE

Up to two union representatives who attend Step 1 grievance meetings will be paid by the Company.

CIVIC DUTY

The company will send a clarification letter to all managers in AT&T Internet Services within 30 days of ratification of the contract to address issues raised during bargaining regarding the application of civic duty to ensure there is consistent application.

UNION ORIENTATION

The Local Union President will be notified in writing when an employee is hired into a job title covered under the National Internet contract and the Local Union will be allowed time to meet with newly-hired employees for the purpose of furnishing them information about the Union. A local union representative is permitted to participate in the orientation at Company expense. This is an improvement from the first tentative agreement.

WORKING RELATIONS COMMITTEE

Add to the Working Relations Committee Agreement to address the following issues:

Standards of performance
Scheduling processes
Mandatory overtime
Transfer process

Increase the number of Working Relations Committee paid members to five union representatives and five company representatives. Status of the above issues will be shared with the Union and Company Bargaining Chairs. (This provision will increase the effectiveness of the WRC in addressing workplace issues).

SBC @ Home

SBC @ Home will be changing its name to AT&T @ Home and will be provided to all Internet Service employees as soon as administratively possible.

DURATION

The agreement shall be effective July 22, 2007 and continue until 11:59 p.m. on July 17, 2010.

In Unity,

Donna Bentley, Chair

Penny Leytem, Mary Linhart, Linda Gonzalez, Cherie Brokaw

THE UNION BARGAINING COMMITTEE, BY MAJORITY VOTE, RECOMMENDS RATIFICATION OF THIS AGREEMENT