Contract Negotiations

CWA Leadership is Fired Up RED HOT to work hard to go for the GOLD for Qwest employees at this bargaining table!

This is the actual Q-015 letter from the District 7 office. This should already be posted on every union bulletin board. If yours doesn't have a copy or if you don't have a bulletin board at your location, please call the hall at 266-5876. We can't get the news to you if there's no place to put it!

Q-015

February 18, 2005

TO: All CWA Locals with Members in Qwest Consumer

FROM: Reed Roberts, Administrative Assistant to the Vice President

SUBJECT: Early Bargaining

In his all employee call this week, Qwest CEO Richard Notebaert stated that he had suggested early bargaining to CWA as a way to give the employees a wage increase early. Mr. Notebaert went on to express his concern that his proposal was rejected by CWA and suggested that employees contact the Union to encourage us to do so.

The question then is why CWA would spurn the offer of an early wage increase.

Just prior to meeting with the CWA and IBEW Local Presidents on February 8th and 9th, Mr. Notebaert called CWA Vice President Annie Hill to tell her that he would be requesting from the Qwest board that a bonus be paid to the CWA and IBEW-represented employees.

According to Addendum 7 of the current agreement between CWA and Qwest, each employee may receive a lump sum payment ranging from 1% to a cap of 3% of their previous year's earning if certain standards are met. Additionally, the intent was if a bonus were paid to management personnel, a bonus would be paid to the Union-represented employees as well.

While the Company's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) did not meet the standard in the Addendum (triggering the obligation to pay a bonus), Mr. Notebaert did tell the Local Presidents he would be requestiong that a bonus be paid.

In his call to Vice President Hill, Mr. Notebaert also suggested that if CWA could agree to bargaining early, in addition to a possible bonus, could perhaps the base wage increase could go into effect as early as sometime in April, if an overall agreement could be reached.

In the CWA caucus prior to meeting with Mr. Notebaert and other management representatives, the question was put to the Local Presidents. They expressed concerns that due to the overall condition of Qwest, the last 2 rounds of bargaining had been very limited and that there was little interest on their members part to agree to anything similar. It was felt that while there were still some concerns, the overall health of the company had improved, due in no small part to the employees having accepted the status quo originally bargained in 1998, a 2-year wage freeze and some concessions in certain benefits in 2 consecutive contracts.

That meant that this year would be the first time in over 7 years that the two parties would sit down for a full bargaining. The Locals wanted to ensure that the suggestions and issues submitted by the rank and file were addressed and that the myriad of issues that exist would be discussed.

However, the Locals did feel that if Qwest were to agree - up front - not to seek concessions in health care benefits for the active and retired employees, then the biggest issue that we expect to be on the table for the people we represent would have been satisfied. It was also felt that if Qwest were not interested in making such a commitment, we would have a clear signal as to what to expect at the bargaining table.

The group directed that the 2 of us relay this proposal to the Company. The following day, they came back to us and rejected the suggestion, saying that they could not make that commitment.

The Company offered no counter-proposal.

Formal negotiations will begin on June 22nd, 2005.

If you have any questions or comments, please contact me.

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ec: CWA District 7 Staff