Consolidated (Lufkin/Conroe) Bargaining Report #21

The Company finally sent your CWA Bargaining Committee responses to our last information request around 10:30 a.m. yesterday.  After reviewing the Company’s responses, the Committee met with the Company at 1:00 p.m. through early evening in an attempt to reach an agreement on a new contract.  The Union asked questions and got clarification on the Company’s responses to aforementioned information request.  In the end, the Company still could not answer all of our questions. 

The Union then presented another package proposal to the Company.  Despite the ultimatum contained in the Company’s last proposal requiring ratification by March 1, 2017 in order for the 2017 Performance Bonus to be paid, the Union’s counter continued to include it without conditions.  Simply put, the Company had not, and still hasn’t, answered all legitimate questions the Union has asked which, in turn, put the Union in the position of not being able to explain all aspects of the Company’s proposal.  The Company rejected outright the Union’s proposal for settlement.

During the course of the afternoon’s negotiations, the parties discussed the Company’s ultimatum relative to the 2017 Performance Bonus payout at length.  For the first time, the Company notified the Union that the March 1 deadline was derived from tax implications rather than an attempt to exert pressure on the Union to rush to put their proposal out to the membership for a vote.  After having the Union’s counter proposal summarily rejected, your Union Committee caucused to consider the status of negotiations and the information gleaned from the day’s discussions.  Ultimately, rather than lose the 2017 guaranteed Performance Bonus payout, the Union agreed to put the Company’s proposal out to the membership for a vote.  CWA District 6 does not recommend ratification, however, the Bargaining Committee has committed to remain neutral on ratification and let the members decide.  The proposal the membership will vote on includes, among other changes, the following items of major interest:

Wages:  Annual general wage increases of:

                        1.75% effective upon ratification

                        1.75% effective October 16, 2017

                        1.75% effective October 16, 2018

These wage increases, when compounded over the course of the new Agreement, equate to a 5.36% increase.

Annual Performance Bonus:  This annual bonus is based on the Company’s attainment of EBITDA objective.  This bonus, if achieved, will be paid out in the first quarter of the year following the measurement year.  The Performance Bonus target payment is $550 for 2017, 2018 and 2019.  If ratified, the 2017 Performance Bonus payment will be guaranteed at 100% ($550) despite the EBITDA for 2016 performance measurement being 96.7%.

Health Care Benefits:  The premium share percentages for employees on the Standard Plan and the High Deductible Plan will increase each year.  The Plus Plan will be eliminated.  The Company will re-open the enrollment process to allow employees to alter their previous elections based on these changes.

Cash Balance Pension/401(K):  Beginning July 1, 2017, the Company will no longer make contributions to employee’s Cash Balance accounts.  Affected employees will instead be eligible to participate in the 401(K) plan that offers a 100% Company match on up to 6% employee contribution.

Post-Retirement Health Care:  Employees retiring on or after January 1, 2018 will no longer receive Company contributions toward the cost of health care premiums.  Such retirees will remain eligible to participate in Company health care plans at the full cost of the premium until reaching Medicare eligibility.

Construction Job Titles:  Certain job titles will be combined.

Again, this is not intended to be an all-inclusive list of changes.  The Local leadership is currently making the necessary arrangements to conduct Contract Explanation Meetings during which all changes will be covered and discussed.  The times and locations of these important meetings will be disseminated by the Local as soon as all arrangements have been solidified.  Your Bargaining Committee encourages all CWA members to attend an explanation meeting.  At the conclusion of the explanation, members will have an opportunity to vote on ratification of the new Agreement.

Your Bargaining Committee wishes to once again thank the members who have shown their support and patience throughout these protracted negotiations.