four year contract 2007-2010 tentative agreement subject to ratification members have a right to...
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Four Year Contract 2007-2010• Tentative Agreement Subject to Ratification
• Members have a right to approve or reject a
Contract by vote.
• Ask yourself: Is this contract in the best economic interest of you & your family?
• Ask yourself : Did the CWA National act in your best interest or for other motivation?
• 1.5% base salary pay toward Health Benefits
• .5 % of base salary into pension system.
•Ask yourself: Is this turning back the economic clock?
Across the Board Increases• 07/01/07 Year 1: Increase on $alary
• 07/01/08 Year 2: Increase on $alary
• 07/01/09 Year 3: Increase on $alary
• 07/01/10 Year 4: Increase on $alary
3 %
3 %
3.5 %
3.5 %
Administrative/Clerical Administrative/Clerical EqualizationEqualization
• The salary tables of the A Bargaining Unit will be adjusted to
reflect the P,R, & S Units.
The equalization provision adds $50 to $125 to the annual salary to
workers in the A bargaining unit.
• Employees making less than $37K receive their % raise plus a cash bonus.
• The bonus is calculated per the following formula:
• Base$ minus $37K x .03% = Bonus
$25,000 minus $37,000 = ($12,000 x .03 %) = $360
Example 1. Jane makes $25,000 and will get a 3% raise:
.03 x $25,000 = $750 plus $25,000 = new salary of $25,750.
Now calculate the bonus…..
Base$ minus ($37K x .03%) = Bonus
$30,000 minus $37,000 = ($7,000 x .03 %) = $210
Example 2. Joe makes $30,000 and will get a 3% raise:
.03 x $30,000 = $900 plus $30,000 = new salary of $30,900.
Now calculate the bonus…..
• July 1, 2007 Clothing Allowance = $650
• July 1, 2008 Clothing Allowance = $650
• July 1, 2009 Clothing Allowance = $675
• July 1, 2010 Clothing Allowance = $700
Health Benefit Concession• Effective July 1, 2007 1.5% of your salary will be deducted for the cost of health care.
Base $alary X .015 = Health Care Cost
$25,750 X .015= $ 386.25
More than half of the increase eaten away by the health care give-back!
Scenario #1 Jane makes $25,000 and receives her July 07 raise. Her new base salary is now $25,750. The cost of her
health share cost is calculated by the following formula:
Recall that Jane also received a $360 bonus but that was eaten away by the increase in gasoline and heating oil
Health Benefit Concession
Scenario #2 Joe makes $30,000 and receives his July 07 raise. His new base salary is now $30,900. The
cost of the health share cost is calculated by the following formula:
Base $alary X .015 = Health Care Cost
$30,900 X .015= $ 463.50 More than 1/2 of the increase eaten away by the health care
give-back!Recall thatJoe also received a $210
bonus but that was eaten away by the increase in prescription drugs & co-
pays.
Health Benefit Concession
Example #3 Jill makes $50,000 and receives her
July 07 raise. Her new base salary is now $51,500. The cost of the health share cost is calculated by the
following formula:
Base $alary X .015 = Health Care Cost
$51,500 X .015 = $ 772.50 More than 1/2 of the increase eaten away by the health care
give-back!
Jill received no bonus but faced the same increases in gasoline, heating oil and
prescription drugs & co-pays as Jane and Joe.
Increased Medical Co-pays • Effective 07/01/07: Doctor visit co-pays
increase from $10 to $15 or 50%.
• Effective 07/01/07: Emergency room visit co-pays increase from $25 to $50 or 100%.
Remember Jane making $25,750 now with her new base salary. She is a single Mom with a two-year old and a seven year-old. Last year
the family had six visits to the doctor and two emergency room visits (Don’t ask).
Last year that amounted to $115.
Next year it will cost $190 or 60 % more. Maybe the kids won’t get sick. Maybe they won’t get
hurt. Good Luck Jane.
Prescription Drug Co-Pays • Effective 07/01/07 30- Day Non- Mail Order:
• $3 Generic Drugs• $10 Brand Names (where there is no generic
equivalent or the patient is unable to use the generic.)
$25 Brand Names (where there is a generic
& patient does not have doctor certification for exclusion.)
Prescription Drug Co-Pays • Effective 07/01/07 90-Day Mail Order:
• $5 Generic Drugs• $15 Brand Names (where there is no generic
equivalent or the patient is unable to use the generic.)
$40 Brand Names (where there is a generic
& patient does not have doctor certification for exclusion.)
Pension Deduction Increase• All Bargaining Unit Employees shall increase
their Pension contribution from 5.0 % to 5.5%
• Jane makes $25,000
• 07/01/07 her salary increases
to $25,750 and will contribute $1287.50 per year
(5.5% x 25750) – (5.0% x 25750) = Differential
• $1416.25 -1287.50 =$128.75 more
New Preferred Provider Organization (PPO) Health Plan
• Effective January 1, 2008
• Features no gate-keeper to approve referral to a specialist.
• Features a broad national network,• Traditional Plan and NJPlus no longer
available for active employees.• Will Retirees retain Traditional Plan and
NJPLus? or
Enroll in New PPO
• An employee hired after 07/01/07 making more than the S.S. Max
($97,200) will participate in the D.B. Plan for salary up to that amount.
• The salary in excess of SS Max will be subject to a D.C. Plan with the employer contributing 3% and the
employee contributing 5.5%.
• All B.U. Employees shall increase their Pension contribution from 5.0 % to 5.5%
Take Jane the single mom making $25,000:• 07/01/07 her salary increases to $25,750
and will contribute $1416.25 to her pension.
• That amounts to $128.75 more at the 5.5% rate.
• Take Joe who is making $30,900 • 30,900 x 5.5% = $1699.50 - $1545 @5% =
$154.50 More
• Take Jill who is now making $51,500• 51,500 x 5.5% = $2832.50 - $2575 @5% =
$257.50 More
Two-Tier Provisions
• Employees hired after 07/01/07 must reach sixty (60) for full retirement without
penalty.
• Early retirees between 55 and 60 will incur a 1% per year penalty.
JANE JOE Jill‘06 Salary = $25,000 ‘06 Salary = $30,000 ‘06 Salary = $50,000
‘07 Salary = $25,750 ‘07 Salary = $30,900 ‘07 Salary = $51,500
$750 Increase $900 Increase $1500 increase
Health -$376 Health - $463 Health - $772
Before taxes : $374 Before taxes : $437 Before taxes : $728
Pension - $129 Pension -$154 Pension -$257
Before taxes $245 Before taxes $283 Before taxes $471$9.42 / pay before tax $10.88 / pay before tax $18.11 / pay before tax
Bonus = $360 Bonus = $210 Bonus = Zero $
Total $605 Total $493 Total $471No Clothing Allowance Clothing = $650 No Clothing Allowance
A Unit EQ = $33
The Worm in the Apple There never was a
juicy Red Apple to be negotiated because that apple was eaten away before it was
placed on the table by:
1. Turns Back the Economic Clock2. Provisions are Inequitable to Jill, Joe & Jane.
3. The Health & Pensions Concessions are contrary to motions made by the members.
4. Other Unions were given better benefits.5. Ideologically it sets the labor movement back
50 years.6. The increases do not keep up with the rate of
inflation.7. The National played political football at our
expense.