Highlights of the Tentative Agreement - Verizon





Job Security


No movement of work for five years; the .7% restriction is maintained.
The Job Security Letter (JSL) continues for current employees. New hires are not protected by the JSL.
Job security issues may be discussed during the annual April discussions; however, the Company cannot bargain to impasse.
Term


5-year contract.
Discussions in April 2004, 2005, 2006, 2007 about job security issues and wages (in addition to the guaranteed wages). All contract terms and conditions are protected and cannot be modified unless agreed by both parties.
No strikes, no lockouts, no unilateral imposition of new contract terms.

Wages and Compensation
Over the term of the contract, with the guaranteed annual increases and expected cost of living adjustments, the wage increase will equal 10.6%. Elements of the wage increase are:


3% lump sum upon ratification, payable in October.
2% guaranteed minimum annual increase in August 2004, 2005, 2006, 2007, applied to all steps of the wage schedules.
A Cost-of-Living Adjustment (COLA) payable in 2006 and 2007. The 2006 payment equals one-half the change in the CPI from May 2004 to May 2006, minus 4%. The 2007 payment equals one-half the change in the CPI from May 2006 to May 2007, minus 2%.
Additional wage increases will be discussed in April 2004, 2005, 2006 and 2007.
Click here for an online wage calculator to see how the guaranteed increases and potential changes to inflation will affect you.
Corporate Profit-Sharing
The Corporate Profit Sharing Plan (CPS) is continued with minimum distribution (subject to prorating for partial years), as follows:


2004: $500 minimum
2005: $550 minimum
2006: $600 minimum
2007: $650 minimum
2008: $700 minimum
Pension
The lump sum cash out option is preserved. Between October 1, 2003, and December 31, 2003, there will be a special incentive window when pension bands will be increased 5%. At the end of the period, the incentive increase will end. The lump sum cashout will be available during the incentive window. Cashouts will be available again on November 1, 2004, and will remain in effect thereafter, through the term of the contract. Between November 1, 2003, and August 2, 2008, pension bands will increase 11.46% on a compounded basis. Annual pension band increases are as follows:


10/1/03: 5% incentive window; expires 12/31/03
11/1/04: 2% permanent pension band increase
10/1/05: 3% permanent pension band increase
10/1/06: 3% permanent pension band increase
10/1/07: 3% permanent pension band increase
Voluntary Termination Bonus


Employees who leave voluntarily pursuant to IPP/ISP or Enhanced IPP/ISP offering during the term of the agreement, are eligible for a lump sum payment of $10,000 in addition to any amount for which the employee is otherwise eligible, plus six months of medical coverage if not otherwise eligible.
Health Care and Other Benefits


No premium sharing for actives or retirees.
Premium surcharge of $40 per month is imposed for spouses or partners of active employees who have access to health insurance coverage through their employers. If the spouse's income is less than $25,000 or if their premium is more than $900 annually ($75 a month), then the employee is exempted from paying the surcharge. This is to encourage workers to have their spouses' employer pick up a portion of the total medical costs for their families.
A new PPO arrangement will be integrated with the current MEP indemnity plan. Co-pays will replace 80/20 cost sharing when a PPO doctor is used. This new benefit is a result of the work of the joint Advisory Committees on Health Care, a successful union-management team that developed a win-win approach to health care cost control while assuring quality care.
New preventive care benefits will be included in the MEP plan for the first time in the NY/NE contract and are updated in the Mid-Atlantic, as well as updated in the HCN and MCN plans. The new benefits include coverage of one physical exam annually for individuals over age 50, and coverage of one complete regimen of immunizations and flu vaccine annually for children and adults.