CWA-OFS Final Bargaining Report 2009
Dear Member:
With this Final Bargaining Report, you have a summary of the agreement negotiated by CWA with OFS (Optical Fiber Solutions) Formerly Lucent Technologies. From our first days of employment with OFS, everything we have ever learned about CWA and it's members can be summed up in just three words
UNITED WE STAND
These words describe, better than any other, the driving force of the labor movement – the commitment of our members throughout CWA and the entire labor movement across the Globe to build a better life for ourselves and our families by taking a stand and by taking that stand, and by taking that stand together.
With a global move by corporations to shift healthcare costs to employees and retirees, increased outsourcing and subcontracting of good union jobs, the goal of the bargainers was to maintain healthcare protections and more importantly achieve a level of job security for all our members across the collective bargaining agreement.
With that in mind, this new collective bargaining agreement calls for protection in healthcare, for both actives and retirees, a general wage increase of 7.45% over four years and continued pension contributions, In addition there were a number of additional improvements in contract language as outlined in the summary below.
The company came into this round of bargaining determined to push retrogression throughout the contract. The resolve of the bargaining committee was strong and our focus was clear. The resolve of the whole CWA and the fact that the union membership at the Sturbridge and Norcross OFS facilities stood solidly behind the bargaining team had a huge impact. The resolve of you, the membership, was a strong as ever.
AND UNITED WE STOOD
As a result of this commitment, your Bargaining Committee is pleased to report that this agreement achieves the objective set by the CWA's rank-and-file Bargaining Council and the CWA Executive Board and unanimously recommends ratification of this agreement.
In Unity, The National Bargaining Team
Ralph Maly, Vice President, Chair Lois Grimes, Assistant To Vice President
Voricea Phillips, CWA Local 3263 Ruth Marriott, CWA Representative
Chris LaPierre, CWA Local 1365 Martha Flagge, CWA Representative
Jim Cosgrove, CWA Representative
DETAILES OF THE 2009 CWA/OFS TENTATIVE AGREEMENT
Duration
Expires on June1, 2013
Wages
June 1, 2009 - $250.00 lump sum and $250.00 signing bonus upon ratification
January 4, 2010 – 2.25%
January 3, 2011 – 2.00%
January 2, 2012 – 2.00%
January 7, 2013 – 1.00%
Pensions
Traditional Pension and Cash Balance remain the same.
Active and Retired Employee, Medical Benefits
Active Healthcare Plan
Co-Pay/Co-Insurance Network Non-Network
ER-Unless admitted $85.00 $85.00
OP Surgical $125.00 $175.00
IP Hospital $125.00 $175.00
IP Mental Health $125.00 $175.00
Office Visits $20.00 60%
Specialist-Includes mental Health $30.00 60%
Co-Insurance 85% 85%
Urgent Care $20.00 60%
Deductible (employee/family) $300/$600 $500/$1,000
Out of pocket maximum (emp/family) $2,000/$4,000 $4,000/8,000
Mail Order
Prescription drug co-pay Retail (Mandatory)
$10, $25, $40 $20, $50, $80
Deductible None None
Employee Medical Premiums (Monthly)
1/1/10 1/1/11 1/1/12 1/1/13
Employee Only $8.00 $10.00 $12.00 $14.00
Employee & Spouse $21.00 $24.00 $27.00 $30.00
Employee & Child(ren) $16.00 $19.00 $22.00 $25.00
Employee & Family (spouse & child) $30.00 $32.00 $34.00 $36.00
Active Dental Plan No change
OFS/CWA JOINT HEALTHCARE COMMITTEE
The Company and CWA agree to establish a Joint Healthcare Committee (JHCC) in order to facilitate awareness of the OFS healthcare benefit. A major focus of the JHCC will be to develop communications strategies to assist active and retired participants to use the OFS healthcare benefit more efficiently and cost-effectively, as well as to promote a greater awareness among employees & retirees of being value-conscious healthcare consumers. The JHCC members, using consensus, may recommend opportunities to improve the overall healthcare program.
The Committee will meet bi-annually, or more often as needed. One of the bi-annual meetings will be held face to face and another will be held via Video Teleconference, if possible. If the technology is not available to all members of the Committee, the meeting will be held via telephone conference call. The location of the face to face meetings will be determined by consensus of the full committee.
JHCC Members
The JHCC will be comprised of one (1) Union appointee from each of the two manufacturing facilities (Sturbridge, MA and Norcross, GA) represented by the agreement, as well as one (1) CWA Staff representing the CWA National office. In addition, the Committee will include one (1) Company appointee, representing HR, from each of the two manufacturing facilities (Sturbridge, MA and Norcross, GA) and one (1) Company appointee from the Benefits Department who has benefits responsibilities for both represented manufacturing facilities (Sturbridge, MA and Norcross, GA). Appointees will include members with benefits, health and labor expertise.
Upon the implementation of state and federal programs, the Committee will determine the applicability of any plans, program, laws, regulations, or orders that result in cost reductions or savings.
If applicable, any Medicare Part D reimbursements the Company receives will be used to offset overall retiree healthcare costs.
Any potential savings, to include, reductions in funding levels and/or premiums will not supersede the agreed upon allocation of cost sharing 40%imployer and 60% Retirees, as will as the negotiated cost sharing for Active represented employees. OFS and the JHCC will meet annually to review the new funding levels. Changes may be made to premiums and/or medical, prescription drug and dental plan designs based upon the mutual agreement between OFS and the CWA.
Consultants and Advisors
The parties will continue to elicit and the best professional advice both from medical and benefit specialists within the Company and Unions and, on an as-needed basis, from recognized outside independent experts in interpreting the data on OFS health costs and evaluating the performance of health plans.
Retiree Healthcare Plan
Co-Pay/Co-Insurance Network Non-Network
ER-Unless admitted $85.00 $85.00
Op Surgical $125.00 $175.00
IP Hospital $125.00 $175.00
IP Mental Health $125.00 $175.00
Office Visits $20.00 60%
Specialist-Includes mental Health $30.00 60%
Co-Insurance No change No change
Deductible (employee/family) $300/$600 $500/$1,000
Out of pocket maximum (emp/family) No change No change
Prescription drug co-pay No change No change
Retiree Medical Premiums (Monthly)
Represented retiree medical: 5/31/09 1/1/10 1/1/11 1/1/12 1/1/13
Employee<65 Only $411 $436 $457 $480 $504
Employee<65 & Spouse<65 $862 $914 $959 $1,007 $1,058
Employee<65 & Child(ren) $667 $707 $742 $779 $818
Employee<65 & Family $998 $1,058 $1,111 $1,166 $1,225
Employee 65+ Only $219 $232 $244 $256 $269
Employee & Spouse 1 < &1> $532 $564 $592 $622 $653
Employee 65+ & Spouse 65+ $438 $464 $487 $512 $537
Employee 65+ & Child(ren) $476 $505 $530 $556 $584
Employee 65+ & Family $639 $677 $711 $747 $784
Represented Retired Dental No change
Retirement Benefit Allowance
Retiree only (age 65) $219 $232 $244 $256 $269
Employee age 65+ &
Spouse age 65+ $438 $464 $487 $512 $537
Retire Medical Buyout
"Buy-out" payments are scheduled for December 1st
Payment Schedule
First Payment - $12,500.00
Second Payment - $12,500.00
RETIREE AND ACTIVE HEALTHCARE DISCUSSION
In August 2009, the Joint Healthcare Committee (JHCC) will meet to discuss implementing a Medicare Advantage Plan, for Medicare-eligible retirees, in an attempt to reduce the cost of retiree healthcare. Provided a consensus is reached by the members of the JHCC, The Medicare Advantage plan design will be comparable to the current OFS Medical Plan for Medicare-eligible retirees.
In addition, at the August meeting, or no later than 12/31/09, will meet with Express Scripts (ESI0, OFS' Prescription Drug Benefit Manager (PBM), to discuss implementing prescription drug programs that may make the Prescription Drug Program (PDP) more cost-efficient, to further reduce medical costs. New Prescription drug programs would be implemented as soon as possible following the JHCC meeting with ESI. As a result of implementing the Medicare Advantage Plan and new prescription drug programs, the JHCC will annually review clams experience to determine whether plans savings have been realized, and to analyze overall clams utilization, in an attempt to reduce retiree premiums in Plan Year 2010.
Other National Provisions
Alliance:
Will continue to be funded
Changes in the Contract Articles
The following are changes to contract articles:
Article 9 – Wages
After 6/1/06 at the Norcross facility and 3/1/09 at the Sturbridge facility – the new hires and rehired employees whose scheduled daily tour falls wholly or in part between 6:00 p.m. and 6:00 a.m. will be paid a night work bonus of $1.00 per hour for hours worked during his/her Scheduled Daily Tour. (This differential change does not affect Sturbridge's CON-OP language.)
All represented employees will be eligible to receive 4.00% Short-Term Incentive Plan Bonus to be paid bi-annually based on company-defined objectives.
STIP 2009 2010 2011 2012 2013
Target % *0% 4.00% 4.00% 4.00% 4.00%
*Company agrees to pay through the end of June 2009 to complete the Q-2 payment at 3.00% of the STIP targets set locally at Norcross and Sturbridge.
Elimination of Profit Sharing
Members of the Emergency Response Teams who are trained and certified in accordance with OSHA standards will receive $125.00 per quarter ($500.00 per year).
Article 14 – Excused Work Days
Two (2) Excused Work Days may be scheduled in one (1) hour increments
Denied Excused Work Days may be carried over but need to be completed prior to June 30.
Article 15 – Pay Treatment for Absences
Under Death in Family, Daughter-in-law and Son-in-law were added to Immediate Family Members.
Article 22 – Welfare and Training Programs
Administration of the programs will come from the Training Subcommittee and the Alliance regional resources with the goal of creating programs to support employees' skill enhancement for current and future jobs at OFS.
Employees involuntary terminated due to layoff, with recall rights, will be afforded access to job-related training programs subject to agreement by the respective local Training Subcommittees.
