August 25, 2006

Class Action Settlement Prompts Talks To Improve 401(k) Plan at Embarq

The recent settlement of a class action suit against Sprint Corp. has prompted talks between CWA and Embarq — formerly Sprint's local phone subsidiary before being spun off — over improvements in Embarq's 401(k) savings plan.

In approving settlement of the suit, which involves some 85,000 class members at both Sprint and Embarq, a U.S. district court judge in Kansas City recommended that Embarq's 401(k) plan be improved in several ways to match reforms Sprint has already made. Among these are increasing the limits on employee tax-free contributions to the plan and diversification of investment options for matching contributions, said CWA Telecommunications Vice President Jimmy Gurganus.

CWA and IBEW represented the 16,500 union workers at Embarq at a recent "fairness hearing" prior to approval of the settlement. Besides calling for savings plan improvements, the court ordered that the workers receive free one-on-one financial planning assistance from Ameriprise and also share $4 million dollars, which amounts to an average of about $63 per class member.

The lawsuit alleged that Sprint's savings plan directors breached their fiduciary duties by requiring investment in Sprint stock when they should have known the market value of the stock was impaired by the proposed merger with WorldCom.

Politicians Lend Support  to Fight Verizon Sale

CWA leaders who are fighting Verizon's plan to sell off its 1.6 million local telephone lines in New England are encouraged by meetings with regional governors, most recently New Hampshire Gov. John Lynch.

"I walked away from that meeting feeling very positive," said CWA Local 1400 Executive Vice President Meg Collins. "He seemed to be very understanding of what the sale could mean for his state."

Lynch hasn't yet joined Maine Gov. John Baldacci in sending a letter of concern to Verizon, but Collins said union members are hopeful that he will. Recently U.S. Sens. Patrick Leahy and James Jeffords and Rep. Bernie Sanders, all of Vermont, also sent a letter to the company.

A sale would affect about 350 CWA members employed as service representatives and 2,700 IBEW members who work as technicians, clerks, operators and service reps. Members have been mobilizing throughout the summer and are planning many activities on and around Labor Day.

Union leaders say a Verizon sale would hurt consumers as well as workers. In Hawaii, for instance, Verizon sold all its landline operations there to a smaller local company several years ago. According to the Aug. 18 New Hampshire Union Leader, "Taking control of more than 80 computer systems set off months of problems for Hawaiian Telecom, from disruption to web access to doubled billing on phone bills."

Labor and political leaders also note that a sale would be a technological step backward for rural America, which is already struggling to keep up with urban areas in access to high-speed Internet service.

"The possible sale of Verizon's access lines throughout Vermont raises serious questions about Verizon's commitment to bridging the digital divide found primarily in rural America — and so evident in the mostly rural areas of our state," the Vermont politicians said in their letter to the company. "High-speed Internet access is essential to the economic growth of rural Vermont, and is integral to our state's plan to build healthy Vermont businesses for the new century."

Guild Members Rally Around St. Louis Reporter

Members of the St. Louis Newspaper Guild, CWA Local 36047, rallied outside the Post-Dispatch newspaper to protest the unfair suspension of a prize-winning reporter.

Carolyn Tuft, with 14 years at the paper, was wrongly disciplined for a story she wrote in April 2005 about the Joyce Meyer Ministries. Her case was heard by an arbitrator this week, but a decision may take several months.

After Tuft's story appeared in April 2005, two Post-Dispatch editors — one of whom has left the newspaper — published an unprecedented apology. This apology clarified matters that did not need clarifying and corrected information that was not in error, the local said.

The local also pointed out that management's actions violated contract provisions concerning disciplinary procedures and were unfairly and wrongly applied to Tuft. Tuft was the only person singled out for any discipline.

"I want them to correct the record. I was never unfair or unprofessional. I want my career and credibility back," she said in an interview with Editor and Publisher.

St. Louis Post-Dispatch employees are rallying behind Tuft because they know that if management's over-the-top response is allowed to stand, all employees will be at risk for excessive penalties, the local said. Also speaking at the rally were local president Jeff Gordon and Ed Bishop, editor of the St. Louis Journalism Review.

Money-Saving 'Tips' Add Insult to Injury at Northwest

Never let it be said that bankrupt Northwest Airlines doesn't care about its workers: Along with deep wage cuts and layoffs, it offered its beleaguered employees a handy little guidebook filled with 101 ways to save money — including dumpster diving.

Tip number 46 reads, "Don't be shy about pulling something you like out of the trash."

The booklet was included in a layoff packet given to dozens of workers, but was quickly pulled from the packets when workers expressed outrage, according to the popular website http://thesmokinggun.com/ which posted the booklet online.

Other suggested ways to pinch pennies included renting out a room, shopping in thrift stores, taking fewer showers, using old newspapers for cat litter and searching the Internet for freebies.

"There's no way we could make this up," flight attendant union leaders at Northwest said on their AFA-CWA webpage. "The rocket scientists in the executive suite actually sent these 'helpful hints' to Northwest flight attendants after picking our pocket for $195 million."

Under a contract imposed by Northwest in July, the 9,200 flight attendants represented by AFA-CWA have seen their starting pay shrink to $16,000, with the most senior employees earning just $43,000.  The flight attendants have threatened to strike unless the airline agrees to negotiate a new contract.

IN BRIEF:

  • After twice vetoing increases in California's minimum wage, Gov. Arnold Schwarzenegger looked at the calendar, saw it was an election year and agreed to raise the state's minimum wage to $8 an hour by 2008.

    "It's been a long time coming, and frankly the reason it's coming is because this is a political year," said District 9 Vice President Tony Bixler.

    In reaching a compromise with the Democratic-controlled legislature, Schwarzenegger agreed to the two-step raise — 75 cents in 2007 and 50 cents in 2008 — but refused to allow automatic cost-of-living increases in future years. His opponent in November, Democratic state Treasurer Phil Angelides, said that if he's elected he'll sign any bill indexing minimum wage increases to inflation so that "working families are not held hostage to politics," the Times reported.

     
  • Detroit Tigers pitcher Justin Verlander is already a star in his first season, and with the media spotlight on him he's making his union dad CWA District 2 Organizing Coordinator Richard Verlander especially proud.

    "He talks like a kid raised on the principles of Local 2201, and maybe that's because Justin Verlander spent countless hours in a stroller on picket lines," begins a Yahoo Sports feature.

    The story notes that Justin talks about the Major League Baseball Players Association "in reverential terms instead of asking why his paycheck gets docked $40 a day for dues." Justin tells writer Jeff Passan, 'The people before me worked hard to get what we have now in the system. If you don't take advantage of that and learn and realize what the previous guys went through to get where we are now, you can't appreciate it."

    Justin says someday he might like to have a role in the union. His dad tells Passan, "That would be the ultimate. We've never really talked about it. But I can say he would be great at it."

    Read the whole story at http://sports.yahoo.com/mlb/news?slug=jppverlander081606&prov=yhoo&type=lgns.