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   Vol. 68/No. 23           June 14, 2004  
 
 
Communications Workers reach accord with SBC
 
BY BEN WHITMORE  
HOUSTON—Following the conclusion of a four-day strike by 100,000 members of the Communications Workers of America (CWA) against SBC Communications, the union announced May 25 that it had reached a tentative agreement with the company on a new five-year contract. The accord provides workers with “employment security,” access to new high tech jobs, and health insurance with no monthly premiums, according to the union. The company succeeded in imposing higher medical co-payments on union members. Telephone workers at SBC—the second-largest local phone provider in the United States—had walked out in 13 states in their first strike since 1983.

“From what I can see it sounds like it’s a good deal,” commented Eva Marron, a union shop steward, in a phone interview. “One of the main things we have been concerned about is job security.”

According to a news release issued by the CWA, “The settlement guarantees that there will be no layoffs of employees currently on the payroll for the life of the agreement, and it calls for the rehiring of several hundred workers who had been laid off at SBC Southwest and SBC Midwest.” In addition, the pact reportedly gives union workers access to new jobs being created at SBC in areas such as Voice over Internet Protocol, Wireless Internet, video services, and business data services. The union statement added, “CWA and SBC agreed to work together to bring back tech support jobs from overseas when the current outsourcing agreement with Accenture expires.”

According to a Reuters news release, “The company also said union workers would be allowed to perform jobs in some growth areas that are considered extensions of traditional telephone work, while jobs in other high-growth areas would be offered to union workers at competitive wages.”

Under the agreement workers will make increased co-payments for doctor visits and prescription drugs.

According to an article in the May 26 San Francisco Chronicle, the company will save $2 billion with the co-payment increases, which was one of its key goals with this contract. The settlement “provides SBC the savings and flexibility we need to navigate through a tough operating environment,” said the company’s chief executive officer, Edward Whitacre, in a statement.

Workers on the picket lines said the company demand to increase co-payments was one of the main issues in the strike. “SBC wants to increase health-care co-payments from $20 to $60,” CWA member Blanca Lancaster told Militant reporters May 21 during the four-day walkout. “I am a mother with four kids. Do you know what that will cost me to take them to the doctor?”

Claiming it will offset the increased co-payments, the company will pay active employees $1,000 bonuses and retirees $2,500 bonuses.

Pensions will increase 13 percent over the contract’s term. Workers will receive a 2.3 percent raise on average for each year of the contract, with an additional 1 percent lump sum payment in the first year and cost-of-living increases in the fourth and fifth years.

Union members will be holding meetings to discuss details of the proposed contract and then cast their votes through mail-in ballots, workers report.  
 
 
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