April 28, 2006

CWA Opens Bargaining with Avaya May 1

CWA will begin contract negotiations with Avaya on May 1 for a new agreement covering 2,900 workers. The current contract expires May 27; negotiations will be held in Washington, D.C.

Larger locations include customer service workers in Atlanta, Oklahoma City and the Denver area, and other Avaya workers in Anaheim, Calif., Dallas and Houston, Tex., Columbus and Cleveland, Ohio, and the New York City metro area.

Avaya workers adopted bargaining goals at the Communications and Technologies leadership conference earlier this year, citing employment security, including "jobs with a future" and an end to outsourcing of work, as a key objective.

CWA Vice President Ralph Maly for communications and technologies expressed concern that the good relationship that CWA and Avaya had built from the earliest days of the company has all but disappeared.

He listed job cuts, Avaya's outsourcing of work and the ability of Avaya's business partners to manipulate customers who prefer to use Avaya services and maintenance as examples of the company's flawed business strategy.

"CWA wants that good working relationship to be restored. We want Avaya to be a successful business and our members, of course, have a huge interest in continuing Avaya's success. Our members deserve to be full partners in the business that they helped create. They don't deserve to be marginalized or their livelihoods eliminated by mismanagement," he said.

CWA Launches Assault on Bad Corporate Policies

CWA made a case for responsible corporate governance at IBM, General Electric and AT&T this week, at the first of several shareholder actions on the calendar this spring.

"Because our members own stock in many of these companies, we once a year have the opportunity to air our views on how they should be run," said CWA President Larry Cohen. "We build a broad base of support among these corporations' owners when we oppose excessive CEO pay and corporate boards run amok, and we strengthen our position for bargaining."

Representatives of the Alliance@IBM/CWA Local 1701 on April 26 turned out at the company's annual meeting in Tulsa, Okla., to support a resolution calling for simple majority rule on all matters requiring shareholder approval rather than the supermajority previously required. The measure passed with 61.5 percent of votes cast.

Also at the meeting, Janet Krueger, an Alliance@IBM member and former IBM worker, submitted a resolution calling for clearer, "plain English" disclosure of executive compensation, which includes restricted stock, stock options and long-term incentive plans. That resolution received more than 40 percent of shares voted. Jim Askew, another Local 1701 member, took CEO Sam Palmisano to task at the meeting on changes to the company's 401(k) plan between 1991 and 1995 that will cause older workers to retire with 40 to 50 percent less than they previously could have expected. 

On the same day, IUE-CWA members leafleted outside General Electric's shareholder meeting in Philadelphia and, as part of the Coordinated Bargaining Committee of GE unions, supported shareholder resolutions demanding that directors be elected by majority vote and that its board include a union retiree. The majority vote proposal drew 18 percent of shares voted. The proposal for a retiree board member received 4.3 percent.

CWA Communications and Technologies Vice President Ralph Maly spoke at the AT&T annual meeting in San Antonio on April 28, making a direct appeal to "new AT&T" CEO Ed Whitacre to enforce commitments made to "old AT&T" members through collective bargaining. CWA and Whitacre have enjoyed a relationship of mutual respect as evidenced by good contracts as SBC, honored with integrity by both parties, he noted. Maly pointed out that following the merger of SBC and the old AT&T, CWA members enthusiastically ratified a new collective bargaining agreement, yet 600 have been laid off because the new company has not enforced the job security language regarding the old AT&T part of the business. 

District 6 Retired Members Chapter President Bobby Brown challenged the board for approving the billions in funding necessary to achieve a series of mergers and acquisitions over several years while refusing to increase pension payments to retirees and implementing increases in copays for health care and prescription drugs.

Preparing for additional shareholder meetings later in the spring, CWA has submitted its own resolution for the Verizon meeting scheduled for May 4 in Overland Park, Kan. Opposing interlocking directorships, the proposal would prevent directors from sitting on the boards of other directors' companies. For example, as in at least one case, the union sees a clear conflict of interest in Verizon directors — who must vote on huge health care expenditures — also sitting on the boards of pharmaceutical companies.

CWA leaders from Texas to New England have been hard at work collecting proxies from members and retirees and organizing leafleting in support of the Verizon proposal. District 6 members in red shirts and other unionists from the San Antonio Central Labor Council will pass out handbills outside the meeting comparing "Ivan the Terribly Greedy," referring to CEO Ivan Seidenberg, to 16th century Russian conqueror Ivan the Terrible. Their flier condemns Seidenberg for "outrageous corporate greed, destruction of shareholder value threatening employees' futures and undermining Verizon's long-term interests."

It points out that in 2005 Verizon stock fell by 26 percent and earnings by 5.5 percent, the company froze management's pension plan, and major credit agencies downgraded the company's debt. Meanwhile Seidenberg was rewarded with a 48% pay hike and $15 million toward his retirement.

Other demonstrations of support are being organized by District 1 at Verizon locations in New York and Boston.

In a challenge to Comcast, CWA, IBEW and religious activists are planning a prayer vigil in Philadelphia on May 17, the night before the Comcast shareholder meeting. While drawing attention to Comcast's unionbusting, CWA members at the meeting will support a resolution calling for each share of stock to be of equal weight in voting. Currently CEO Brian Roberts and his family own about 2 percent of Comcast's stock, but their shares are designated a special class, worth 33 percent in voting, virtually ensuring their complete control of the company.

TNG-CWA Calls for Scrutiny of McClatchy Deal

TNG-CWA is calling for close scrutiny of the proposed sale of four former Knight Ridder newspapers by McClatchy Co. to MediaNews and Hearst Corp., because of the complexity of the sale and the possible antitrust violations already committed by MediaNews at its Pennsylvania operations. 

The four newspapers — the San Jose Mercury News, Monterey Herald and Contra Costa Times, all in California, and the St. Paul Pioneer Press in Minnesota — are part of a group of 12 that McClatchy is selling. The Yucaipa Companies, a worker-friendly equity investment firm, bid for all 12 properties with the support of TNG-CWA, which represents workers at eight of the newspapers. 

TNG-CWA President Linda Foley said the deal was extremely complicated and demonstrated that the newspaper industry is dominated by a small circle of ownership groups that, after the sale announcement, has become even smaller. 

TNG-CWA has called on the U.S. Department of Justice as well as Attorneys General in the affected states to assess the antitrust implications of the proposal.

TNG-CWA, the York/Adams County (Pa.) AFL-CIO and York, Pa., City Council President Cameron Texter have petitioned the U.S. Attorney General to revoke the antitrust immunity that allowed for the joint operation of the York newspapers, charging that MediaNews has hidden the fact that it is the sole owner and publisher of the city's two newspapers.

Henry J. Holcomb, president of TNG-CWA's Knight Ridder Council, said "it is troubling that business enterprises that have a financial interest in limiting competition are working with self-imposed secrecy to craft a complex deal that appears to be designed to evade official scrutiny. Businesses that have a sacred public trust to protect the American way of life are showing too little concern for their credibility with the public, and the public should demand more respect."

IN BRIEF:

  • After more than two years of intense negotiations and member mobilization, AFA-CWA members at Alaska Airlines ratified a new 4-year agreement calling for pay raises retroactive for 18 months and an enhanced profit sharing plan along with other gains.

    The 2,500 flight attendants also won strong protections against outsourcing, medical premium caps and the shortest duty day in the industry, reported Veda Shook, president of the Alaska Airlines Master Executive Council. She spotlighted the profit sharing agreement, noting "as front line employees we will now be able to share in the wealth that we help create for our airline."

     
  • CWA's Disaster Relief Fund built by donations from members has spent just shy of $1.5 million helping 1,253 members and retirees affected by Hurricanes Katrina, Rita and Wilma last year.

    Janine Brown, outgoing CWA representative for women's activities and community services, thanked members and locals for the contributions and for help coordinating the aid process. "We really did terrific work helping our members," Brown said.

    Brown is headed to a position as labor liaison with United Way of Metro Atlanta. CWA Director of Human Rights Gwend Johnson will handle any outstanding claims for hurricane damage.