Qwest Bargaining Reports.

New comparison to other RBOC contracts, received 9-19-05.

Attached is the comparison that was discussed at the contract explanation meeting and provides a comparison on wages and health care between the major telecommunications companies.

WAGES AND BENEFITS

Addendum 7

Effective August 14, 2005, the weekly base wage in each progression step of each wage scale and wage schedule in this addendum shall be increased by 3%.  This wage increase shall be implemented as soon as administratively feasible following ratification of this Collective Bargaining Agreement and applied retroactively to August 14, 2005.

Effective August 13, 2006, the weekly base wage in each progression step of each wage scale and wage schedule in this Addendum shall be increased by 2.5%.

Effective August 12, 2007, the weekly base wage in each progression step of each wage and wage schedule in this Addendum shall be increased by 2%.

All weekly rates will be rounded to the nearest fifty cents ($.50).

These increases will not be applied to the current base wage rate for those in the Sales Consultant (SC) titles in either Consumer or Small Business.

HEALTH CARE CHANGES

OUT-OF-POCKET PRESCRIPTION CO-PAY CAP:  Effective 1-1-06 the amount any individual would pay is capped at $1500.  The co-pay schedule for prescription drugs remains as is in 2005.  This change applies to both active and post-90 retirees.

More than 1000 actives and retirees have expenses that exceed $1500 per year in co-pays.  This puts a limit on individual’s out-of-pocket expenses on prescription drugs.  Once an individual reaches the $1500, any further prescriptions would not require any co-pays.

ENROLLMENT FEE:  Effective 1-1-06 an ANNUAL fee will be required when enrolling dependants. A dependant is a spouse or child.   There is no fee for employees.  Qwest has agreed to prorate the ANNUAL fee and deduct it pre-tax from employee’s paychecks.  By having the fee-deducted pre-tax, it saves on average 30%.  The exact savings are impacted by your individual tax schedule.

The fee schedule is:

                                Employee                                  No Charge

                                One Dependent                          $300 per year 

                                More than one                           $400 per year.

OUT OF POCKET MAXIMUMS

2006, 2007, and 2008 out-of-network out-of-pocket maximum: $3,450 individual, $6,900 family.

The POS plan in MN, ND, and WI will eliminate the current in-network out-of-pocket maximums.

The Occupational No-Network Plan will change in 2006, 2007, and 2008 as follows (includes ALL states):

DEDUCTIBLES:

2006, 2007, AND 2008 deductibles: $350 individual, $1,050 family.

OUT OF POCKET MAXIMUMS:

2006, 2007, AND 2008 out-of-pocket maximum: $1,650 individual, $4,950 family.

PLAN DESIGN CHANGE:  Effective 1-1-06 the occupational point of service plan will be modified as outlined below.  These changes impact both active employees and post-90 retirees.

The current co-pays for facility services (where they exist) will be eliminated.  They will be replaced by an annual deductible of $150 for an individual and $300 for a family.     

The current co-pays within this category are as follows:

In-patient Hospital                                     $175.00

                                Outpatient emergency room                      $75.00

                                Outpatient surgery                                    $100.00

                                Ambulance                                                $50.00

                                Laboratory                                               $0.00

                                X-Rays/Imaging                                         $0.00

                (This list covers the most common items in the category)

On 1-1-06, all of the above co-pays will be eliminated and these services will be subject to an annual deductible.  Once an individual has met their $150.00 deductible or a family has met their $300.00,the services are covered at 100%. There is NO change to co-pays for physician services.  They remain at the 2005 level.

RETIREE HEALTH CARE (POST 90 RETIREES ONLY)

The 2003 contract protected post-90 retirees from paying a portion of their premium until 1-1-06.  The retiree health care letter (page 161-162 of the current contract) contains caps on the amount Qwest will pay for retiree health care.  In 2002 the costs exceeded the caps for the first time.  Every year the gap continues to grow.  The 2006,2007 and 2008 cost for the amount of health care above the caps is $180 million dollars.   This is a growing problem that is harder to resolve every contract cycle.

In order to protect this important benefit for retirees the following changes to Life Insurance will be made in January 2006.

LIFE INSURANCE FOR FUTURE RETIREES:

·            Lump Sum Pension Option for

Effective 1-1-06, basic life insurance for future retirees will be a flat $10,000. Currently it is equal to your annual pay rounded up to the next higher $1000 increment.  This change does not impact the supplemental insurance that individuals can purchase.  (Supplemental remains tied to an individual’s annual salary.)

THIS CHANGE DOES NOT IMPACT YOUR LIFE INSURANCE PROVISIONS WHILE YOU ARE AN ACTIVE EMPLOYEE.

PENSIONS

·          Amend Pension Plan to allow spouse to receive an actuarially equivalent lump sum payment instead of an annuity.

ARTICLE 2

Section 2.1

·          Split tours limited to Screening Centers. 

Section2.6

·          Arbitration Settlement regarding non-contiguous hours added to the contract.

ARTICLE 3

Section 3.1

·          Any employee that typically works a night tour will be paid night differential for Company initiated day training.

Section 3.2

·          Differential will go from $1.50 to $1.75.

Section 3.8

·          When an employee’s tour for a particular calendar day begins with less than eight (8) hour intermission from the stop time of their previous calendar day tour, the employee shall be paid a differential of $5.00.  The employee’s tour is defined as their normal 5x8, 4x10 or 4x9 and a 4-hour daily schedule.  The differential does not apply when voluntary or mandatory overtime, or work time in connection with a Call for Work, or tour change made at the employee’s request results in a less than eight (8) hour intermission.

ARTICLE 4

Section 4.3

·          Remove “unless otherwise addressed in this Agreement”. Future call-outs will be paid daily overtime for all time worked.

ARTICLE 5

Section 5.1 – Add the following language:

Employees in Local Network operations will be “called for Work” primarily to respond to customer service issues including the following:

·          Emergency Services (e.g.911, fire, police)

·          T1/T3 and higher reported outages

·          HICAP reported outages

·          Multi-line business reported outages

·          Reported cable, system or other facility/plant damage and/or outages

·          Public, medical or health emergencies

·          Network monitoring alarms

·          Escalation from high profile customers

·          Tariff, 271 or other regulatory responsibilities

·          Acts of God

ARTICLE 9

·          Changes in option A from $65.00 to $69.00 per day.

·          Change in Option B from $32.00 to $36.00 per day.

·          Change in high cost city from $34.00 to $37.00.

Section 9.4

·          Increase road allowance changes from $10.00 to $12.00.

ARTICLE 11

Section 11.1

·          Addition of 1 PDN

Section 11.33

·          Add “an additional paid personal day for a Saturday or Sunday holiday that falls within the next calendar year may not be taken until that calendar year.”

Section 11.34

·          Employee option to work holiday at double time and one half or work the holiday at straight pay and receive an additional paid day off.

ARTICLE 12

 Administrative Language - Change from sickness payments to wage replacement

ARTICLE 13

Section 13.1 – Add Language

·          An employee may be excused without pay for a period not to exceed three (3) days due to the death of any of the employee’s following family members: current grandparent-in-law: current brother-in-law: current sister-in-law; aunt or uncle.

ARTICLE 16

·          Several positive changes in the grievance procedure

·          Addition to allow the arbitrator to modify the remedy

ARTICLE 18

Section 18.12

·          Change from 400 to 464 incidental employees

ARTICLE 19

Section 19.6

·          Change to Section (D)  - Expand EVSPP to approximately 45 days prior to layoff

·          Change to Section (I) Recall - Add “lateral titles in the same wage scale.”

ARTICLE 21

Section21.3(5) Post/Bid time-in-title

“will have time-in-title/location waived for an initial placement following the downgrade.  Subsequent movement will be subject to time-in-title/location unless returning to the job title held at the time of Article 19 downgrade.  These employees will also have priority consideration back to the job title held at the time of downgrade following any priority consideration obligations for current force adjusted employee and/or employees on an Article 23 job search.  This priority consideration will be in effect for two years following the date of the Article 19 downgrade.”

ARTICLE 22

Section 22.3

·          Add CSA and CSSA title to allow AHR calculations while on military leave.

Section 22.4

·          Addition to allow PDN to be used for FMLA

ARTICLE 28

·          Duration of contract – Three (3) years ending August 16, 2008.

ADDENDUM 1

·          Section A1.3(B)(C) Changes in the Wage Credit calculation for re-engaged employees and changes in previously held job titles.

·          Section A1.4(a) inclusion of Employees holding Sales Positions Titles into the provision of A1.3.

ADDENDUM 2

Section A2.3(a) Inclusion of “ Home Purchase” in relocation reimbursements. Increases in homeowner reimbursements from $6,000 to $7,000 and renter reimbursements from $1,000 to $1,500.

ADDENDUM 3

CHANGES TO CURRENT LETTERS OF AGREEMENT

1.Executive Work Council

·          Change number of CWA Representatives to one Bargaining Agent and four Union members. 

2.  Local Agreements on Overtime Administration

·          Right to manage the forty-ninth hour moved from the criteria to be discussed in the main paragraph.

3.  Removal of the Leveraged Compensation Plan letter.

4.  Removal of Student Classification.

5.  Qwest Uniform Program

·          Changes to add BRI, administrative changes to remove Public Telephone and Coin Collectors, and add Building Specialist and Building Technician.

·          Program remains voluntary for current employees and will be mandatory for new hires and transfers.

·          Allowance and time frames were added.

6.  Administrative changes in the Diversity Committee.  Changed from three to four in                  committee.

7. Pension Band 120

·          Extend for the life of the agreement.

8.  Concessions

·          Remove old letter in contract

·          Gives additional options with new letter

9.  Supplemental Payment Cities - ADD

·          Gunnison, Colorado

·          Meeker, Colorado

·          Taos, New Mexico

10.  Pathways – Changes to the Pathways Letter

·          Now a committee, not a corporation

·          Added $100,000 of funding for the Advocacy Conference

·          Extended through the life of the contract

·          Anyone separated after 1-1-06 will be eligible for 36 months of Pathways

·          Expanded the scope of essential skills

11.  Employee Development Using Call Recording and Observing

       letter replaced with 7/1/2004 existing letter.

ADDENDUM 3

NEW LETTERS OF AGREEMENT

Re: Determining Seniority

This letter captures the practice of how seniority is determined when the employees are hired on the same day.  By comparing the last digit of the affected employees’ social security numbers.

Re: Mobilization activities.

Adds the current letter on permissible mobilization activities into the Collective Bargaining Agreement.

Re: Consumer Markets Scheduling Advisory Team.

This letter addresses flexibility in the Consumer Markets centers.  Beginning October 1, 2005 the Company will conduct trials in the entire consumer Sales and Sales and Service centers to address issues around scheduling.  The trials will focus on “Flex-Time/off Shifting” and be patterned after trials currently underway in the Des Moines and Portland Sales and Sales and Service centers.  This letter of agreement also provides for an advisory team, which will discuss the parameters of the trial and post-trial results for consideration on ongoing use in 2006.

The Consumer Markets Scheduling Advisory Team shall be comprised of three (3) advisory members each from the Company and Union and shall meet four (4) times per year.

Re: Network Screening Centers Scheduling

In an effort to discuss issues, and alternatives regarding work schedules and scheduling processes that impact employee’s preferences and flexibility within Network Screening centers, the Company shall include a discussion of scheduling on the agenda in the existing Screening Center Quarterly Labor Management Forums.

The Forum shall discuss and explore various alternatives that address scheduling issues, may recommend trials, discuss the parameters of such trials and review post trial results for consideration of ongoing use.

ADDENDUM 4

A4.1 Care of Newborn, Adopted, or Foster Child Leave 

Approved non-pay child care leave for up to one (1) year shall be inclusive of the disability period if applicable, leave will be granted for an initial period of six (6) months from the birth, adoption, or placement of a foster child/children.

Section A4.5 Family and Work Development Fund. Effective 1-1-06 the Company will bring the balance of funds available for calendar year 2006 to $100,000.00 for each year through 2008.

ADDENDUM 5

Titles

 Added:                   Broadband Technician (effective date 8/16/06)

                               Center Sales and Service Associate

                               Center Sales Associate

 Removed:               Coin Collector

                               Public Telephone Technician

Changed:               Administrative Representative:              Scale E to C

                               Administrative Technician:                        Scale D to C

                               Assignment Consultant:                              Scale 4 to 2

                               Customer Representative:                         Scale D to C

                        Customer Service Specialist:                      Scale TCL to T

 ADDENDUM 6

 The following RCA changes and additions:

RCA3 – Add Arizona City and Maricopa

RCA5 – Add Ash Fork and Williams

RCA10 – Add Anthem, Higley, Laveen, Superior, and Wintersbury

RCA11 – Add Chino Valley and Prescott Valley

RCA14 – Add Sahuarta

RCA17 – Add Somerton

RCA25 – Add Elizabeth and Lonetree

RCA86 – Add Finland

RCA90 – Add Edina and Minnetonka

RCA95 – Add Roseville

RCA116 – Add La Vista

RCA160 – Add Dallas And Keizer

RCA180 – Add West Valley City

RCA184 – Add Tukwila

RCA193 – Add Lacy

RCA195 – Add Hatton

RCA196 – Add Kennewich