AT&T and its unions -- CWA and International Brotherhood of Electrical Workers (IBEW) -- are to begin negotiating new contracts today (March 11) in Washington for 27,410 unionized employees, 26,577 of them in CWA. Current 4-year contracts expire May 11. AT&T said unions turned down its offer in Feb. to extend contract for 18 months, with 6% salary raise over that period, 8% increase in pension for employees retiring before end of extension, increase in separation payments, continuation of current medical plan for length of extension, including no minimum contributions for active employees and retirees. AT&T said average weekly salaries of its unionized workers ranged from $663 for senior clerks to $1,030 for communications technicians. “Negotiations will take place during turbulent times for the telecom industry,” AT&T said in fact sheet. CWA said members would be “practice picketing” at AT&T locations Mon., “sending the message that keeping quality jobs at the company is critical.” CWA Pres. Morton Bahr said his “members want AT&T to succeed,” but “by slashing jobs and contracting out work to low pay, high turnover operations, AT&T is jeopardizing quality service.” IBEW, which will negotiate jointly with CWA on national issues, said job security was primary goal “in an industry of rapid technological change and seemingly endless corporate restructuring.” IBEW said it turned down AT&T’s contract extension offer because company wouldn’t agree to no-layoff pledge. IBEW also complained that contract extension called for using pension funds to pay for severance benefits. Most of IBEW’s AT&T members are in N.J., Pa., R.I.

In contract proposal promptly criticized by CWA as “long on rhetoric,” AT&T offered to extend current contracts with CWA and IBEW for up to 18 months as part of package that would include 6% wage increase. But unions raised concerns, citing Feb. 6 AT&T letter to CWA officers that “indicated that there would be further reductions in both union- represented and management jobs for 2002,” CWA said. Current contracts expire May 11 and offer would extend them until Nov. 2003. AT&T said offer was designed to provide stability in wages and benefits for employees “until the economy and the telecommunications industry show signs of improvement.” Besides wage increase over 18 months, AT&T said proposal included: (1) 8% pension increase for employees retiring between now and end of extension. (2) Immediate increase in separation payments of 10%-500% depending on years of service. (3) Continuation of free employee and retiree medical coverage for length of extension. CWA Vp Ralph Maly said proposed contract extension failed to meet “workers’ concerns about jobs as the company moves ahead with its breakup.” AT&T said increase in pension and separation payments alone would be equivalent to one year’s annual salary for “long-term employees.” Along with benefits now given to long-term employees, new separation payments plan would be close to 3 years pay for those with 30 years of service. For 13,000 union members who have fewer than 6 years of service, proposal would increase separation or pension payments by $3,000, AT&T said. But CWA said: “Pension and wages increases -- the only items addressed by AT&T’s extension proposal -- don’t mean much when you don’t have a job.” Union raised concerns that proposed termination benefits would amount to “raid on workers’ pension fund.” Pension plan would be used to make severance payments to employees, “instead of using operating budget funds as is currently required,” CWA said. Union said it had offered to begin bargaining immediately, instead of waiting for scheduled opening of contract talks March 11. Union said it had continued to raise concerns with company about job losses. “Today’s proposal suggests that the company would like to avoid serious labor issues while it’s finalizing the deal with Comcast that it expects to complete by the end of the year,” CWA said.

LG.Philips Displays, battling to reduce costs, will shut Ottawa, O., TV tube plant by Dec., full year ahead of schedule, as it completes move of production to Mexico. In unveiling plans in May 2000 to shift production of 25-27” tubes to Mexico over period of 3 years, Philips said it would keep 32” and other specialty products at Ohio plant.

IBEW said its membership ratified 3-year contract with SBC’s Ameritech unit in Ill. and Ind. by 92% margin. Contract offers increased wages and pensions and improved working conditions.

IBEW and SBC’s Ameritech unit reached tentative agreement over weekend in contract renegotiations, union said. Contract between SBC and IBEW Local 21, representing workers in Ill. and northwest Ind., had been reopened to set terms for wage and pension issues for last 2 years of 5-year contract set to expire June 28, 2003. Over weekend, Ameritech agreed to extend contract additional year, through June 26, 2004, which union said would maintain current job security provisions. Agreement also includes increased wages and improved benefits over 3 years, union said.

Negotiations between IBEW and SBC’s Ameritech unit aren’t going well, with “both sides still far apart on wages and pensions,” IBEW said in news release issued Fri. Union said its main contract doesn’t expire until June 28, 2003 but talks are underway on several economic provisions that have been re-opened. Negotiations on those provisions were supposed to be completed by June 24. Strike is possible in Ill. and N.W. Ind. if bargaining isn’t successful, IBEW said.

CWA and IBEW members ratified 2-year extension of existing collective bargaining agreement with Qwest. Contract, negotiated in 4th quarter last year, covers wage and pension increases, including 3.5% wage hike effective Aug. 19. Original CWA contract, covering most Qwest union employees, was signed in Sept. 1998 following 3-week strike. Agreement was to expire Aug. 16, with extension now keeping it in place until Aug. 16, 2003. Other provisions include: (1) 5% wage increase that takes effect Aug. 18, 2002. (2) 6% pension increase effective July 1, 2002. (3) 10% pension raise July 1, 2003. IBEW extension with Dex directory unit provides similar increases with different timelines depending on contract schedules, Qwest said. Contract extension between Qwest Dex management and CWA has been tentatively ratified and must be approved by union members, Qwest said. Company said it expected to be informed of Dex vote results next month. “The union membership voted 98% in favor of ratification,” said Peter Pusateri, business mgr. of IBEW Local 1269.