Download - Century Link Training
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The Merger ofCenturyLink and Qwest
Implications for CWA Members
CWA Local Officer PresentationAugust 2010
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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
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Overview and Status Report on Proposed
Merger of CenturyLink and Qwest
http://www.centurylinkqwestmerger.com/downloads/maps/centurylink-qwest-national-network.pdf -
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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
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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
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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
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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
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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
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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.
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A Tale of Two Companies
A Review of Union Contracts at
Qwest and CenturyLink
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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
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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.
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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
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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
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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
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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
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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
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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
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Meeting Challenges,Creating Opportunities
CWAs Plans for Moving Forward
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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
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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
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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
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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
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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
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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
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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