National Newsletter   August 4,2003

 

August 4, 2003

Talks On-Going at Verizon

 

Union negotiations with Verizon continued past the midnight Aug. 2 contract expiration and CWA reported some progress in the intense ongoing discussions, although major issues remain to be resolved.


The parties are meeting with Peter Hurtgen, director of the Federal Mediation and Conciliation Service. Separately, the bargaining subcommittees continued to work on resolving local issues.


Also continuing are talks covering 50 Verizon Wireless workers, whose contract expired Aug. 1.


CWA and IBEW members continue to work while talks are underway and until further notice from union officers.


CWA's strategy to support bargaining currently calls for solidarity actions, including pre- and after-work rallies, wearing red and other activities that mobilize members and build public support.


Among those events: members in New York held pre-work rallies, Philadelphia area CWAers leafleted the homes of top Verizon executives, West Virginia members rallied outside the company's Charleston facility, New Jersey members protested the hire of replacement contractors, and more.


The bargaining teams expressed their appreciation for the local actions, stressing that it was having an impact at the bargaining table.


Meanwhile, in North Carolina, CWA Local 3673 kept up its contract battle with Verizon over demands for givebacks in sick disability leave and family emergency leave. The 150 technicians have been on strike since May 17.
 

IBM Workers Hail Court Ruling on Pensions
 

A federal court ruling July 31 was a major victory for Alliance@IBM members and other IBM workers whose pensions took hits when the company switched to a cash-balance pension plan.


Chief District Judge G. Patrick Murphy of the Southern District of Illinois upheld the workers' argument in Cooper vs. IBM that the company pension plan changes in 1995 and 1999 amounted to illegal age discrimination by reducing pension benefits for 140,000 older employees.


"The pension plans were changed to boost the bottom line and increase executives' bonuses, while hurting loyal employees," said Linda Guyer, president of Alliance @IBM/CWA local 1701. "We are now finally seeing some justice for employees who have worked hard in their long careers at IBM."


The ruling Wednesday dealt only with liability. The judge has yet to decide on how the affected workers will be compensated. The company plans an immediate appeal.


Plaintiff Kathi Cooper, a 24-year IBM employee cheered the ruling, saying the company's cash-balance scheme was "unconscionable."


"This significant victory is proof of the power of employees working together for justice and fairness,' Cooper said. "This is a great day for IBM employees. I want to thank everyone that supported this case, our attorneys, IBM employees, friends of the case and the Alliance @IBM. It makes me proud to be an Alliance member."


MCI/WorldCom Barred from New Government Contracts

 

In the wake of President Bahr's congressional testimony on MCI/WorldCom's pending bankruptcy settlement, the General Services Administration on July 31 announced the suspension of the company from receiving new federal government contracts.


The U.S. Government, through GSA, has been MCI/WorldCom's largest customer. Government contracts provided $500 million to the company in 2002 and, according to industry analysts, that amount could rise to as much as $800 million for 2003.


The suspension and  "proposed debarment" immediately stops government agencies from entering into any new contracts with MCI/WorldCom. Though the company has 30 days to challenge it, if GSA upholds the decision, many of those contracts will not be renewable and the "debarment" will stop MCI/WorldCom from bidding on government contracts for as long as three years.


"Finally MCI/WorldCom is being held responsible for the irreparable harm it has caused to telecommunications companies that play by the rules and, by extension, to tens of thousands of our members who have lost their jobs due to layoffs," Bahr said.


"It is important that all companies and individuals doing business with the federal government be ethical and responsible," said GSA Administrator Stephen Perry. After reviewing a report by its Office of Inspector General, the GSA determined that the company is not "presently responsible" and that it lacks necessary internal controls and business ethics.


Both Bahr and Verizon Executive Vice President William Barr called for a Justice Department probe and prosecution of MCI/WorldCom when they testified at an oversight hearing conducted July 20 by the Senate Judiciary Committee.


Also at that hearing they challenged the adequacy of a $750 million fine MCI/WorldCom agreed to pay to settle an $11 billion fraud case brought by the Securities and Exchange Commission. The settlement must be approved by a federal judge who will decide this fall whether to allow a restructured MCI/WorldCom to emerge from bankruptcy and continue doing business under the name MCI. CWA maintains that the settlement will give MCI an unfair competitive advantage, causing further destabilization and job loss throughout the telecom industry.


WorldCom's fortunes started to unravel earlier this week when the Justice Department announced it is looking into allegations that MCI/WorldCom evaded paying billions of dollars in access fees to local phone companies. On July 30 the Federal Communications Commission launched its own probe into the matter. The FCC regulates access fees and has the power to fine WorldCom if it finds wrongdoing. In addition, House Energy Committee Chair Rep. W. J. "Billy" Tauzin plans to conduct a hearing on the charges in September.

 

Senate Takes Up Overtime Issue; DOL Refuses to Budge

 

In spite of overwhelming evidence to the contrary, the Department of Labor is refusing to back off its claim that just 644,000 workers would lose overtime pay under changes the agency intends to make to the Fair Labor Standards Act.


Wage and Hour Administrator Tammy McCutchen stuck by the highly disputed figure during a brief hearing Thursday before a Senate Appropriations subcommittee, but Ross Eisenbrey of the Economic Policy Institute told lawmakers that at least 8 million Americans would be affected.


Eisenbrey testified that EPI asked the labor department to explain how it arrived at the 644,000 figure, but the agency wouldn't respond. He presented the subcommittee with a detailed analysis of what's missing from the DOL's equation, showing how murky language in the proposed regulations will give employers broad authority to exempt workers from overtime protection.


Eisenbrey said that among the many problems with the agency's math, it only took into account people who currently receive overtime pay — about 12 million Americans — as opposed to the 80 to 90 million Americans who are eligible.


"Because the overtime premium works as it was designed to, and discourages employers from assigning overtime to non-exempt workers, removing overtime protection will result in many employees working overtime who don't work overtime now," he said. "Congress and the public should be concerned about the loss of overtime protection, not just the loss of overtime pay."


Eisenbrey and CWA attorney Mark Wilson, a specialist in the FLSA and overtime law, also spoke earlier this week at a media briefing hosted by TNG-CWA at the National Press Club in Washington, D.C.


The Senate is expected to take action on the overtime issue after its August recess, likely in the form of an amendment to an appropriations bill. In addition, Sens. Edward Kennedy (D-Mass.) and Tom Harkin (D-Iowa) have introduced a bill (S.1485) to prevent the new regulations from taking away any workers' overtime protection.

 

Kenny Bergstrom, Retired C&T AA, Dies

 

Kenneth H. Bergstrom, retired administrative assistant to CWA's vice president for Communications and Technologies and former national director of Western Electric Sales, died on July 24 due to complications of diabetes. He was 73.


"Kenny Bergstrom helped bargain our pacesetting 1980 contract with AT&T," said retired C&T Vice President Jim Irvine. "And during the difficult period following the 1984 divestiture, he reached out personally to so many of our locals and members who suffered layoffs."
 

Bergstrom joined CWA when he went to work as an electronics technician for AT&T's Western Electric Manufacturing Company in 1950. Undertaking various leadership roles in Local 7295, he eventually rose to president of the local and vice president of the Minneapolis CWA City Council.


He joined the staff in January 1966 and was assigned as a representative for the CWA Sales unit at Western Electric, based in New York City, which sold and repaired telephones and equipment. In December 1967, he was named assistant national director for Sales, and in June 1974 became national director.


When Western Electric moved its labor relations personnel to North Carolina in the 1970s, Bergstrom moved to CWA's office in Greensboro, N.C., and in June 1977 occupied a new office building opened for the National Director's Unit.


Bergstrom served on the national committee that bargained the 1980 Western Electric contract. "So much of what we have in our AT&T and Lucent contracts came out of 1980, including retirement after 30 years," Irvine said. "Back then only CWA and the Autoworkers had it."


After divestiture, Western Electric became part of AT&T Technologies. The Sales office moved to Somerset, N.J., in July 1985, and Bergstrom moved with it. In May 1986, following a restructuring of CWA, he was named administrative assistant to CWA Vice President for AT&T Technologies Ron Allen. In July 1987, when CWA combined AT&T Communications and Technologies under one vice president, he became administrative assistant to Irvine. He retired in July 1991.


Bergstrom is survived by his wife, Alyce, of Greensboro, N.C.; two sons Kenneth and David; a daughter, Catherine Bauer, and three grandchildren.
 

IN BRIEF: