CWA AND IDEARC MEDIA
Valley Forge Contract
FINAL
BARGAINING REPORT
REPORT DATE June 6, 2009
Agreement Reached on Effects of Valley Forge Closure
and the Transfer of Work and Employees to Bensalem Sales Office
Idearc and CWA met on Saturday, June 6th, for several hours finalizing an agreement to buffer the impact of closing the Valley Forge facility and the transfer of specific job functions to the Sales office in Bensalem, PA. Unfortunately, the fact that Idearc recently filed for bankruptcy protection appeared to hamper our efforts to obtain more generous options for those losing their jobs. Additionally, our options were constrained by the fact that other Idearc employees across the US are experiencing similar job losses. The Company’s bottom line position was “why should we treat those losing their jobs in Valley Forge any better than others experiencing similar fates?”
Fortunately for us the spokesperson at the Valley Forge bargaining table was a previous manager in Elkins Park and Valley Forge, Phil Gaughan. It was through his efforts and compassion that we were able to reach an acceptable resolution to our competing interests.
The many e-mail messages received by the Union’s bargaining team helped guide us to the final outcome and recognizes that everyone is sharing the same experience, regardless of the scheduled lay off date for any individual employee. A copy of the entire Memorandum of Agreement with Addendum, transitional Agreement and Letter of Agreement will be mailed to everyone’s home by June 12, 2009. The final agreement recognizes the shared fate of all employees as follows:
Staggered Closing
- The closing of the facility will be accomplished incrementally over a period of time beginning July 11, 2009 with final closure scheduled for October 31, 2009. Employees will be laid off according to an announced schedule on a seniority basis within their respective job titles.
Current Contract Extended and Improved
- In light of this incremental closing, the current Collective Bargaining Agreement (CBA) will be extended until October 31, 2009 or until the final closure of Valley Forge, whichever is later. Improvements were made as follows:
Additional $1000.00 Lump Sum at Lay Off
- As had been reported in an earlier Bargaining Report, Idearc offered a 2% general wage increase. In response to the number of e-mails received by the Union’s bargaining team, the Union rejected this offer and countered with a demand to pay everyone an additional amount towards his or her lay off allowance. The final Agreement provides that in lieu of a general wage increase, that would only last, at best, for 5 months, everyone will receive a lump sum payment of $1,000 over and above their severance payment that is based on each individual’s wage rate and years of service.
Early Partial TIPS Payout
- The Union also argued for receipt of the TIPS payment earlier than the usual payout in March of the following year. Although not exactly what the Union sought, the final agreement provides that all eligible employees who are laid off will receive a payment of $250.00 (equal to ½ the minimum payment based on a 10 month program) with the remainder of individual’s portion of the 2009 TIPS payout to be received in March 2010.
- Those employees transferred to Bensalem will continue under the TIPS Program currently in place for that unit until December 31, 2009, and they will receive their payout as usual in March of the following year.
Transfer of Spec Art Overflow Work
- The Spec Art Group, including Compositors and some Clerical Support work will be moved to the Bensalem, PA Sales Office.
- Employees in specific titles will be offered the opportunity to transfer to the Bensalem Office to fill the positions necessary.
- Those who fill the Spec Art positions will be changed to the title, Artist. This position exists in the current Sales CBA between CWA and Idearc Media. The Artist title has a higher top rate than Compositor in the Valley Forge CBA. Those who transfer will receive an increase to the higher wage rate at the time of transfer.
- The clerical support work will be offered to employees in titles in Valley Forge, based on the need to support the Spec Art Overflow work being transferred to Bensalem.
- Those clerical support employees who are offered and accept the positions in Bensalem will be moved into the Division Assistant (DA) title in the Sales CBA. That title pays less at top rate than the support positions in Valley Forge.
- The Valley Forge employees accepting transfers to the DA title in Bensalem will have their present wage rate “frozen” and any scheduled increases (3% in April each of the next two years) will be made in “lump sum” payments until the top rate of the DA title meets and exceeds the current pay rate of the transferred employee.
- All employees transferring to Bensalem will chose their benefits options in accordance with the Bensalem CBA beginning in Plan Year 2010.
- Transferred employees will be permitted to use their Christmas Eve and New Year’s Eve Holidays to offset the winter closing for 2009.
Transfer Allowance
- For a period of 20 Business Days following their transfer to Bensalem, transferred employees will receive an allowance of $25.00 for each day they work.
Further Extension of Former Elkins Park Pension Plan
- Those employees who came to Valley Forge from Elkins Park and are currently under the former Verizon/Idearc Defined Pension Plan (called Part 2 of the Idearc Pension Plan for Bargained-For Employees) will continue in that Plan until December 31, 2009 (it was originally scheduled to cease on June 6, 2009), including the lump sum trial (meaning the ability to cash out their pension in a lump sum instead of receiving it in monthly increments).
- Idearc refused to even discuss improvements in the Health Care Benefits for those former Elkins Park employees who are now experiencing premium co-payments that began for the first time in Plan Year 2009.
Cash Payment in Lieu of Vacation and Personal Days
- The extended Valley Forge CBA already provides for a cash payout of unused vacation time and personal days. However, since there was some question about personal days raised at a recent membership meeting, the Memorandum of Agreement Addendum reiterates the option for personal days.
Early Leave and Recall/Rehire Provisions
- Beginning July 1, 2009 any employee requesting an earlier than scheduled layoff date will be considered, subject to the needs of the business. Any employee fired for just cause will not receive any lay off benefits.
- The recall rights provision under the Valley Forge CBA will remain in effect until the facility closes. Additionally, a separate letter agreement provides that, over the one-year period beginning with the closure of the Valley Forge facility, former employees will receive priority placement consideration in the Spec Art Overflow group. This letter agreement will be mailed to former Valley Forge Compositors who were laid off as a result of the 2008 outsourcing initiative.
