Summary of CWA
District 6/Southwestern
5/25/2004
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.
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)
2005 2007 2008 2009
Generic $5 $7 $8 $10
Formulary Brand $15 $17 $18 $20
Non-Formulary Brand $25 $27 $28 $40
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.
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:
Maintained Existing Medicare Part B Reimbursement
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:
2005: $15
2007: $25
2009: $30
In-patient hospital admission copay:
2006: $100
2008: $200
Prescription Drug Benefits
3-tier plan: generic, formulary, non-formulary
$50 annual deductible
retail copays (30-day supply): $10/$20/$40
mail order copays (90-day supply): $20/$40/$80
mandatory mail order for maintenance drugs
Mandatory generic
A specialty pharmacy program for certain high cost prescriptions.
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.
Regional Items
Increased Team Performance Award to $500 for 2005, 2006, 2007, & 2008.
Extended Employment Security Commitment/Job Offer Guarantee (JOG) with no right
for Company to suspend or cancel it for duration of Agreement
Current Night Differential provisions remain for the life of Agreement
Company agreed to recall the 87 employees that were laid-off after the
September 24, 2002 cancellation of ESC.
Recall rights increased from 6 months to 12 months
Extended Hometown Job Security Commitment with no right for Company to suspend
or cancel it for duration of Agreement.
Console Operator provisions extended throughout life of Agreement
Involuntary Severance Tables increased 5%
RPPP Tables Increased 10%
"Continuous Service" language changed to "NCS" throughout
contract.
Surplus employees are moved to other jobs, and then dismissed for work
performance within 6 months, will be paid VSP at the original surplused job level wage rate.
Travel payments increased
MOA's, MOU's Letters of
Agreements and Task Force Recommendations extended for duration of agreement.
Eliminated Vacation restrictions for 5th week scheduling for
employees with 25 years or more of service.
Protections for selection of open weeks of vacations after
they become vacated.
Reinstated Ad-hoc Committee to review Contracting of work
Initiate Ad-hoc Committee within 60 days to address 2-hour overtime
notification violations.
Appendix I- Temporary Work in Higher Classification issues resolved
Grievance handling problems addressed
Extended the 2 CWA Benefit Representative positions
FMLA NCS reduction eliminated
Modified MOA for Wage Recovery on overpayments
Savings and Security Plan Basic Maximum Weekly allotments increased
Adoption Assistance increased to $5000
Upgraded Advanced Computer Attendants in Dallas to Technical Assistance
Administrator S-1
Upgraded Sr. Records Clerks in the Dallas Subpoena Unit
Upgraded Sr. Records Clerks in St. Louis Special Pay Unit
Upgraded Central Office Translations Specialists to pay grade and pension band
equal to Line Translations Specialist.
Extended provision protecting Service Representatives from being put on a DML
or dismissed solely for adherence performance