March/April 2005 Newsletter

 

Bargaining for Our Future

What’s going on in the industry? In 2005, the telecommunications industry is a $550 Billion market. The market share in 2005 is as follows: Internet/Data Video: a 29% share. Wireless has a 16% share and Wireline (Local and LD), a 55% share. In 1990 it was a $150 Billion Market. Then, it was 3% wireless and 97% Wireline.

Wireless Subscribers Will Outpace Access Lines. 5% of customers have replaced landline with wireless. (Sources: CTIA, FC, Statistical Trends in Telephony)

The battle for telecoms’ most profitable customers will be won by carriers that provide cost-effective and reliable value-added services such as broadband. U.S. fixed telephony revenues are eroding due to cellular use, while value-added services such as private lines, packet data, IP VPN, VoIP, and DSL are slated for growth.

Telecom growth slows. Double digit growth is a thing of the past. Industry financial conditions are challenging. Mergers and acquisitions have led to high debt. Weak balance sheets and slower growth create pressure to cut jobs and investment. There are multiple competitors in all segments (Cable, VoIP). Technology changes (Wireless, VoIP, etc.)

Recent Mergers

  1. SBC acquired AT&T
  2. Cingular acquired AT&T Wireless
  3. Sprint acquired Nextel
  4. Alltel acquired Western Wireless
  5. MCI to merge with?

In February of 2005, Qwest granted CEO Dick Notebaert 2 million stock options with a potential value of $12.4 million. In addition, Qwest granted $7million in bonuses to its senior executives, including nearly $3 million to Notebaert.

Union Power

We believe CWA will have strength at the bargaining table in the coming negotiations with Qwest. We will utilize skilled negotiators, political/community support, membership mobilization and solidarity, and the ability to impact the company’s revenue. We must obtain a successful contract at Qwest. We must have an informed membership, support our talented, experienced bargaining team, and mobilize our efforts to support them during negotiations.

As CWA President Morton Bahr has stated, recent contract successes at Verizon and SBC were built on a well informed and united membership—neither of which just happened. It was the months Locals spent building workplace mobilization structures, delivering issue based membership education and participating in collective actions, which gave us flexibility to implement any number of strategies at the end. A united and well informed membership which can just as easily continue to work without a contract, as strike or any variation is the key to our success.

Local 7804 has distributed mailings to secure current addresses, phone numbers and e-mail addresses to prepare for mobilization activities, picket duties, to our members. If you have not yet responded, please do so. You may contact Strike Committee Captain Jake Williams, your steward/officer, or call the union hall normally any Tuesday. Mobilization must continue. Our battle for a good contract is just beginning. Everyone must get involved. You’ll be hearing more in the coming weeks and days.

 

Stories in this issue:


C.W.A. District 7 Conference
Denver, April 24 to 27, 2005

Bargaining –

As one can imagine, this year’s conference was very full, very busy with the QWEST/CWA bargaining agenda occupying one and a half days of the session. I will give a short and not so sweet synopsis of what can possibly be expected during CWA/QWEST bargaining this year.

First – A C.W.A. Bargaining Committee Introduction:

  • Leroy Chirstensen – Asst to the V.P., Dist 7
  • Reed Roberts – Administrative Asst., Dist 7
  • Scott Hogue – Local 7500
  • Kathy Reck – Local 7201
  • Suzie Miller – Local 7777
  • Malachy Sreenen – Local 7800

CWA preparatory bargaining work has already begun with the actual face to face, CWA/QWEST, scheduled to commence June 22.

During the QWEST bargaining portion of the conference the nearly 115 Local delegates went over, discussed, argued about, amended, and voted for or against every proposal submitted by each local in QWEST. These 185 proposals covered all Articles and Addendums in the present contract.

One thing that was carefully pointed out by the committee members and by various speakers that covered QWEST finances both present and projected, was that there is going to be only so much money in the bargaining pot and that this available funding will have to be carefully distributed.

Everyone needs to understand that for every dollar allocated for a proposal, that same dollar will be removed from somewhere else. Not all proposals are of a dollar consideration but giving it a myopic QWEST view, I am sure, QWEST will imagine the dollar value of any proposals, if extended out, would be huge because of managing considerations.

The four main bargaining issues as agreed on by all attendees were: wages, medical, pensions (both present and future), and contract successorship for any type of QWEST sell off, partial or whole.

We all agree that CWA gave their pound of flesh, so to speak, at the last bargaining go around but since then things haven’t changed all that much:

  1. QWEST continues to hover at the bottom of the telecom profit picture with only MCI and Alltel below us.
  2. Overall revenues have QWEST at the bottom.
  3. QWEST’S debt picture has improved; we are in the middle of the pack. The pack by the way is Verizon, SBC, BellSouth, QWEST, Sprint, MCI, Alltell.
  4. Access lines and local services are down
  5. Wall Street puts QWEST at the bottom of the “worth” list at $7 billion.

The above should, at least, point out that even though QWEST is surviving, it is surviving by the skin of it’s teeth and the membership needs to realize that QWEST is kind of like Old Mother Hubbard or The Old Woman Who Lived in the Shoe, I.E. we are surviving but not thriving. So if many of the proposals fail to make it to the table, be cognizant of one thing – they could have been sacrificed so as not to impact the big four.

All delegates were aware that Notebaert and his team received what we as unionists consider rather substantial income incentives in 2004:

  1. Notebaert – CEO - $2,900,000 +
  2. Oren Shaffer – CFO - $1,680.000 +
  3. Barry Allen – Exc. V.P. – $1,109.110 +
  4. Richard Baer – Exc V.P. - $900,000 +
  5. Paula Kruger – Exc V.P. – $362,112 +

These raises undoubtedly sent a wrong message concerning the QWEST money status especially with contract talks just around the corner, but on the other hand it needs to be realize that Notebaert and his little band of intrepid warriors did save many jobs and pensions (Nacchio already got our 401’s) by saving QWEST from bankruptcy and these workers of smoke and mirrors don’t come cheap.

All that the CWA Dist 7 leadership, your bargaining committee, and local officers ask is that our membership be patient, be organized, show a united front, and understand that all of your best interests are what is going to be most important at the bargaining table. There will be gives and takes with a lot of “if I do this for you- this is what we want in exchange”. That’s the way it works.

No one feels QWEST wants or could handle it. To help with future corporate stability a longer duration contract might be pursued by QWEST. 4 – 5 years is always a possibility but whatever, we as CWA’ers need to stand tall – stand tough – stand pat.

Dennis Garrett V.P.


Tribute

CWA would like to hold a special tribute to our CWA members at the 67th Annual Convention. They would like to honor our members or their dependents who are serving or have served our country in Afghanistan or Iraq.

Please provide us with the following information:

  1. Member’s name and Local Union number.
  2. Their rank and Armed Forces Unit (e.g., 1st Calvary).
  3. Date they served or whether they are currently serving.
  4. Location they are serving or have served (e.g., Mosul).
  5. A picture of our heroine or hero would be great.

Please contact Randy Grams, Local 7804 Secretary Treasurer, at one of the contact numbers on the front of this newsletter.


National Food Drive

Each year since 1993, the National Association of Letter Carriers along with millions of United States Postal Service customers perform a valuable community function through it's National Food Drive.  This year's drive is scheduled for Saturday, May 14, 2005. Donations will be collected in participating communities by letter carriers along their mail routes.

This is the single largest one-day collection of food in the nation. With a record collection of 70.9 million pounds of food last year, the total for the first 12 years has been pushed to well over a half BILLION pounds of food. This drive comes at time when many of the banks and pantries are running dangerously low after the surge in giving associated with the Thanksgiving and Christmas holidays.

Your participation is as simple as leaving a bag of non-perishable food either at your mailbox or the Post Office in your neighborhood on May 14, 2005. Each of you are encouraged to support the Letter Carriers in this important effort.


Workers Freedom Bill

Joined by CWA workers and others, lawmakers of both major parties on April 19 announced they were reintroducing in the 109th Congress a bill to protect workers' freedom to form unions and stop employers from interfering with that basic right.  

The principal sponsors of the new bill, S.842 in the Senate and H.R. 1696 in the House, were joined at a Capitol Hill news briefing by AFL-CIO President John Sweeney, CWA President Morton Bahr and six workers who presented their stories and met with senators and representatives from their home states to tell them about employer opposition they faced in their quests for union representation. 

Senators Edward Kennedy (D-Mass.) and Arlen Specter (R-Pa.), and Representatives George Miller (D-Calif.) and Peter King (R-N.Y.) appeared together, demonstrating strong bipartisan support for the new legislation. The Employee Free Choice Act would ensure that when a majority of employees in a workplace decide to form a union, they can do so without the debilitating obstacles employers now use to block workers' free choice. 

CWA's Bahr applauded the courage of John Pezzana, a CWA headend technician at Comcast in the Pittsburgh area, whose formerly AT&T Broadband unit -- after winning three representation elections -- is still fighting for a contract; Clyde Rucker, a senior customer service representative fired from Verizon Wireless in Laurel, Md., for attempting to organize, and other workers who told of numerous captive audience meetings, threats by management to close their work locations and other forms of union-busting intimidation. 

Rucker told how Verizon Wireless violated Verizon's neutrality agreement with CWA by holding captive audience meetings and launching an anti-union website. Though other workers became afraid, Rucker continued to speak out.

"Unions built America. People have died for that," he said. He was fired for being away from his station during a period of inactivity, when similar behavior by workers who were not union advocates was tolerated or even ignored.  

The Employee Free Choice Act would allow workers to choose to form a union by showing majority support through card check. It would provide that if an employer and a union are engaged in bargaining for a first contract and do not reach agreement within 90 days, either party may refer the dispute to the Federal Mediation and Conciliation Service; if mediation is unsuccessful after 30 days, the FMCS may refer the dispute to binding arbitration.

It would provide for mandatory court injunctions against employers for firings, intimidation or other interference with workers' right to organize or while bargaining a first contract.

 

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