century link training

7/31/2019 Century Link Training

1/26

The Merger ofCenturyLink and Qwest

Implications for CWA Members

CWA Local Officer PresentationAugust 2010


2/26

Presentation for CWA Locals WithQwest and CenturyLink Members

Overview and Status Report on ProposedMerger

A Tale of Two Companies -- Review ofUnion Contracts at Qwest and CenturyLink

Meeting Challenges, Creating

OpportunitiesCWAs Plans for MovingForward


3/26

Overview and Status Report on Proposed

Merger of CenturyLink and Qwest
http://www.centurylinkqwestmerger.com/downloads/maps/centurylink-qwest-national-network.pdf


4/26

Companies Claim Merger will Yield

Gains for Customers & Shareholders

Increase availability of high speedbroadband access in largely rural footprint

Expand availability of Internet TV services

Implement LTE wireless data access

Achieve significant savings through

synergies elimination of duplicateservices, increased economies of scale forcostly capital expenditures


5/26

Big Question: Can They Deliver?

CenturyTel will be 8 times larger than itwas before the Embarq purchase

High risk investment with lots of debt

CTL will assume Qwests debt which is 5

times more than it currently owes

CTL is a rural local exchange carrier withno experience with Qwests highly valued

long-haul transport business


6/26

Mergers Expand CTL 800% in 2 years

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

CenturyTel

3Q08

Embarq 3Q08 Combined

3Q08

CenturyLink

4Q09

Qwest 4Q09 Combined

4q09

Total Access Lines


7/26

Merger is Too Much, Too Soon

CTL has not yet completed its merger withEmbarq

Still integrating Embarq systems

Merger with Qwest will further distract them

Failed to meet 1st year broadbandcommitments, requested delay of FCCs

1 Day Porting order


8/26

Merger Must Be Approved

Federal Trade Commission determinedthe merger passes anti-trust rules

Special shareholders meetings Aug 24

Federal Communications Commissionmust determine if deal is in public interest

State commissions must rule


9/26

CWA to Express Concerns in FCC and

PSC Proceedings

determine whether transaction serves thepublic interest

specific and verifiable commitments to improve

service quality.

concrete timetables and plans for systemsintegration

assurances that the merged entity will not leadto any reduction in employment levels, workersliving standards, and organizational rights.


10/26

A Tale of Two Companies

A Review of Union Contracts at

Qwest and CenturyLink


11/26

Union Density Yields Union Power

Non-Union

64%

Union

36%

CenturyLink20,096 employees

Qwest30,138 employees

Non-Union

48%Union

52%

Combined Company50,234 employees

Union

45%

Non-Union

55%

Union DensityBy Company


12/26

Union Power Delivers a Single

Contract at Qwest

QwestOne Contract51 Locals14,384 CWA represented

100 IBEWIn 1989 bargaining,Pacific Northwest Bell,Mountain Bell andNorthwestern Bell were

merged into a singlecontract with USWest.USWest was purchasedby Qwest in 2000.

CenturyLink33 Contracts

31 CWA Locals

3,749 CWA represented

3,386 IBEWBoth CenturyTel andEmbarq are the results ofmany mergers and

purchases of smaller,rural companies over theyears.


13/26

Union Representation at Qwestand CenturyLink Call Centers

6,438

497

4,997

5190

1000

2000

3000

4000

5000

6000

7000

Qwest CenturyLink CenturyLink

Work at Home

Union Workers Non Union Workers


14/26

Union Power DeliversBetter Wages

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

Top Craft Customer Service Clerical

Top Wage Comparisons

Qwest CenturyTel Oregon Embarq Oregon


15/26

Union Power Preserves Better

Benefits

Qwest CTL

Bargaining overBenefits

Company mustbargain with union

over benefits

Company mustnotify union of

change in benefitsPPO Premium

(CTL: for thoseearning $40-70K)

$47/month single

$94/month family

$34/month single

$132/month family

PPO AnnualDeductible

$250 single$500 family

$300 single$600 family

PPO Out ofPocket Max

$1,000/year single

$3,000/year family

$2,000/year single

$4,000/year family


16/26

Union Power Preserves Better

Benefits (Continued)

Network Services Qwest PPO CTL PPO

Office Visit

Co-Pay$25 $25

Inpatient

Hospitalization90/10 coinsurance

after deductible

$250 co-pay, then

80/20 coinsurance

after deductible

Prescription Drugs Generic/Formulary/NonFormulary

Retail$10/ $30/ $50

$7/ 30%*/ 45%***$35 min/$60 max

** $45 min/$100 max

Mail Order $20/ $75/ $125 $15/ $80/ $140


17/26

CenturyLinks Strategic Plan: Use

Divide and Conquer to Gut ContractsCurrent Arkansas Negotiations

1% annual lump sums, no wage increases

Mgmt able to do bargaining unit work

Cutbacks in overtime pay

Concessions on disability, workers comp


18/26

Challenges for CWA

Based on the Embarq experience, we knowwhat to expect:

Company will move work to unrepresentedlocations, where possible

Management will try to bargain contracts down

to the lowest common denominator or lower


19/26

Meeting Challenges,Creating Opportunities

CWAs Plans for Moving Forward


20/26

CWA Can Meet Challenges and Take

Advantage of Opportunities

CWAs Goal: Provide secure jobs with goodcompensation throughout the companies

Union strength at Qwest has come from wall-to-wall representation and one contract covering allemployees

CTL bargaining units can gain from experienceof Qwest wall to wall representation

Success will depend on our ability to mobilizeand organize to expand Union power


21/26

CWAs Strategic Plans

1. Negotiate safeguards for workers

2. Educate and mobilize members to

engage in community and politicalaction

3. Build power through organizing

unorganized units


22/26

CWAs Goals in Negotiations

Employment guarantees

Enhanced employment security provisions

Expand organizing rights in Qwestcontract to CTL

Pave the way to share in company growth


23/26

Goal in Negotiations Expand

Organizing RightsExpand Neutrality Language at Qwest to all CTL

The Company agrees to remain neutral during any organizingcampaign

The Company agrees that when non-represented employees of theCompany who perform duties similar to currently represented

employees choose representation by CWA as a result of organizingefforts, the Company shall apply this Collective BargainingAgreement

In other instances in which employees of the Company chooserepresentation by CWA as a result of organizing efforts (e.g., theUnion has organized employees who worked for an acquired

company or who do not perform work that is similar to that ofexisting represented employees), the Company shall apply thegrievance/arbitration procedures and other administrative provisionsof this Collective Bargaining Agreement to these newly representedemployees unless otherwise agreed


24/26

CWA Members Must Mobilize to

Express Concerns

Locals must educate and mobilize members to act intheir own interests

Raise concerns about risks of the deal for consumers,workers and communities

Contact Governors, State Legislators, Local Officials

Letters and visits

Contact state PUCs

In states where CWA has not intervened, contact consumeradvocate and commissioners

In states where CWA has intervened, do NOT contactcommissioners


25/26

CWA Locals Must Mobilize Members

In District 7 states:Educate and mobilize 5%-10% of membership

SIF funds available for lost time

Generate handwritten letters to Governors,legislators (PSCs in non-intervention states)

Local Presidents to write Letters to Editors

L/P coordinators set up meetings with keyofficials

Member-to-member action to get more letters


26/26

CWA Locals Must Mobilize Members

In CenturyLink-only states:

Educate and mobilize membership

SIF funds available for lost timeGenerate handwritten letters to CWAleadership for use in other states

Local Presidents to write Letters to Editors

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