SNET and CUTW Reach Contract Agreement.NEW HAVEN New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Conn.--(BUSINESS WIRE)--April 3, 1995-- The Connecticut Union of Telephone Workers (CUTW CUTW Connecticut Union of Telephone Workers ) and Southern New England Telecommunications Southern New England Telecommunications Corporation started operations in 1986 as the holding company for The Southern New England Telephone Company. Prior to 1986, The Southern New England Telephone Company had been a minority holding of AT&T until February 1986, when AT&T (SNET n. 1. The fat of a deer. v. t. 1. The clear of mucus; to blow. ) have reached tentative agreement on a new labor contract. The contract includes an offer for employees who want to leave SNET to pursue other opportunities or to retire, a sign-on bonus for employees who choose to stay and 10 percent wage payments over the life of the contract. Last August, SNET and the CUTW agreed to negotiate a voluntary "Early Out Option" for bargaining unit A bargaining unit in labor relations is a group of employees with a clear and identifiable community of interests who are (under U.S. law) represented by a single labor union in collective bargaining and other dealings with management. employees by March 31. During those negotiations, the company and the union agreed that, in order for employees to make the most informed decisions about their future, other provisions of the present contract needed resolution at this time. Thus, the entire contract was negotiated and tentative agreement was reached. The contract contains provisions intended to keep layoffs to a minimum while enabling the company to position itself to meet increasing competition through downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing efforts. CUTW members have until April 21 to ratify ratify v. to confirm and adopt the act of another even though it was not approved beforehand. Example: An employee for Holsinger's Hardware orders carpentry equipment from Phillips Screws and Nails although the employee was not authorized to buy anything. the contract. If ratified rat·i·fy tr.v. rat·i·fied, rat·i·fy·ing, rat·i·fies To approve and give formal sanction to; confirm. See Synonyms at approve. , the agreement will be in effect until August 8, 1998. The existing contract was scheduled to run out on August 5, 1995. SNET and the CUTW recognize that their company is undergoing major change as strong competitors position themselves in Connecticut and technology changes and marketplace demands impact SNET's core business. The company and the union committed to share responsibility for an innovative contract that provides choices for all bargaining unit employees. The Early Out Offer, which will be available initially by July 1 and as surpluses are declared during the life of the contract, adds six years to an employee's age and six years to length of service to determine eligibility for retirement health care benefits and for calculating discounts to pensions. Employees leaving under the offer will receive increased pensions of between 35 and 45 percent, with some even greater. The new contract provides for a $750 sign-on payment for employees electing to continue to work for SNET. The agreement provides for ten percent wage payments over the next three years while insuring that there will be no pay reductions related to job evaluation Job evaluation is the process of systematically determining a relative value of jobs in an organisation. In all cases the idea is to evaluate the job, not the person doing it. Job Ranking is the most simple form. transition during the life of this contract. Wage payments will be made in January 1996 (4 percent), January 1997 (3 percent) and January 1998 (3 percent). A new SNET Point of Service medical plan that includes hospitals and an expanded network of providers will be effective on January 1, 1996. Dental plan payments will be improved beginning January 1, 1996, and company contributions for health care benefits in retirement have also been increased. To enhance all bargaining unit employees' financial security and flexibility, a permanent pension increase of 10 percent and conversion to a cash balance account have also been negotiated for those employees who do not elect to leave under the offer. As a permanent provision of the pension plan, an employee's entire pension can be paid as a lump sum Lump sum A large one-time payment of money. , a monthly pension or a combination of both at any age and length of service. As a part of their joint commitment to provide a work environment that reflects the corporate values, SNET and the CUTW agreed to a one-year trial, beginning June 1, of a new attendance incentive program whereby employees could be awarded with their choice of time off or equivalent pay for those with perfect attendance, one days absence or certain improved attendance over the prior year. CONTACT: Jim Grinberg (CUTW) Beverly Levy (SNET) (203) 288-5271 (203) 771-4474 |
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