Avaya Bargaining Report #2

If today is any indication, Avaya's greed is only exceeded by

their arrogance.

Avaya came to the table this morning with their proposal on

Retiree Pensions and Healthcare. The Company presented many

pages of skewed data and was not prepared to respond to

questions making the bargaining session even more frustrating.

As late as 2003 the Occupational Pension Plan was funded at

108%. Today, during bargaining the Company announced the Pension

Plan is currently funded at 83.6%. The Company offered no

explanation for the loss of hundreds of millions of dollars

except to say that it was not a result of mismanagement. The

Company further claimed that they would be required to make

contributions to the Pension Plan in the near future. Avaya used

this information as a preface to their insulting proposals for

both the Pension Plan and Retiree Health Care.

Avaya proposed no increase to the pension bands and as well as

the elimination of death benefits. The Company's health care

proposal included such cost shifting changes as increased office

visit co-pays for Primary Care Physician (non-specialist) from

$15 to $30 in 2007 and 2008 and then to $35 in 2009. That is

an increase of 100% overall. Medical co-insurance went from 100%

coverage to a 70/30 split with the retiree paying 30%. In

addition, the Company proposed that the? Future Negotiation of

Retiree Medical Caps? letter in the contract be terminated.

In addition, the company?s ultimate insult was a proposal that

gave retirees an option of premiums of $500 a month by 2009

with the cost shifting proposals; or without the cost shifting

proposals, over $1000 a month in premiums by 2009. The Unions

expressed grave concerns to Avaya across the table on the impact

these proposed changes would have on retiree's standards of

living and on a retiree's ability to care for their medical well

being and for that of their family. These proposals from Avaya

would have far-reaching effects on retirees.

The Unions requested extensive documentation to review the

financial numbers from the company's proposal.

Obviously, your bargaining team will give these proposals the

consideration they deserve and respond.

Our next formal meeting is scheduled for 10:00 am tomorrow.

Updates will be posted as they develop.

In Unity,

Your Bargaining Team
For more information send email to: cwa9408@pacbell.net