IBEW Local 2020 (Columbus, OH) Signs Agreement with Lucent Technologies

Posted on Mon, Dec. 20, 2004


Unions Ratify Contract With Lucent


Associated Press

TRENTON, N.J. - Two unions have formally approved a contract with Lucent Technologies Inc. that gives workers raises of more than 16 percent over the course of the next seven years.

The contract also calls for a cost-of-living adjustment starting in 2008 and a $1,000 ratification bonus. The agreement covers workers from the Communications Workers of America and members of the International Brotherhood of Electrical Workers.

A tentative contract was approved on Nov. 9, shortly after the old contract expired at the end of October. Bargaining was overseen by a federal mediator.

More than 90 percent of CWA members voted to approve the new deal, union spokeswoman Candice Johnson said Monday.

The contract also creates a new job classification for installers, Lucent spokeswoman Mary Ward said. They will be paid market rate wages and benefits, which will vary by locations, she said.

The company wanted union retirees to help cover their health insurance, and the contract increases medical co-payments and deductibles.

Those younger than 65 would contribute 3 percent of their monthly pension rate for health care, or about $28.50 on average. Family coverage for those retirees will be 5 percent of the monthly pension rate, about $47.50 on average. Retirees over 65 will pay 2 percent of their monthly pension for single coverage and 4 percent of their monthly pension for family coverage.

Contributions for both groups will increase by one half of 1 percent per year over the contract term. Workers who retired before March 1, 1990, will continue to have employer-paid premiums.

With about 3,250 union members, Lucent has some 70,000 union retirees, with 50,000 dependents, for whom it was given responsibility when the company was spun off from AT&T Corp. in 1996.

The Murray Hill-based maker of telecommunications equipment has about 31,800 workers worldwide, including about 500 CWA members in New Jersey. All but about 250 of the workers around the country who are covered by the contract are represented by the Communications Workers of America. The CWA members include technicians at Bell Labs and installers.

Most of the IBEW members at Lucent are clerical and technical workers based in Columbus, Ohio.

Lucent company already has cut health benefits for thousands of nonunion retirees and their families.

In October, Lucent recorded its first profitable year since 2000. In past years, it had multibillion dollar losses and shed 80 percent of its work force through spinoffs and layoffs.

In trading Monday, Lucent shares rose 5 cents, or 1.3 percent, to close at $3.82 on the New York Stock Exchange. The stock has traded in a 52-week range of $2.70 to $5.



© 2004 AP Wire and wire service sources