Avaya Bargaining Report #3

Greetings:

At today's session the company presented proposals on

Supplementary Life and Accidental Death and Disability Insurance

Plans, and Proposals for the 401K Savings Plan. The Life

Insurance Proposal included additional Supplementary Insurance

options at the employee expense. The Savings Plan changes were

additional options with mandatory payment of fees by our members

regardless of whether or not they used the options. In addition

there were some changes proposed that the company stated were

required by the IRS. The Union acknowledged the proposals and

will respond at a later date.


We again challenged Avaya on the data presented yesterday on the

Pension Plan. The change in the funding of the Plan from 108% in

2003 to the Companies current 83.6% funding is of great concern

to the Unions. Although Avaya stated the reduction in the

funding percentage was not a result of mismanagement, they have

provided no supporting documentation related to the $114

million drop in pension fund assets from January 2004 to January

2006.


Tomorrow the company plans to present proposals on Active

Employee Benefits. We can hardly wait for their latest take-back

proposals to pay for the mismanagement of the company!


Updates will be posted at the end of the session.


Mobilize----Mobilize---Mobilize---Mobilize---Mobilize---Mobilize---Mobilize


In Unity,

CWA-Avaya Bargaining Team
For more information send email to: cwa9408@pacbell.net