As you are aware, Contract Negotiations between IBEW Local 1522 and Agere Systems have not gone well. Agere notified IBEW Local 1522 that they were going to implement their best and final offer on June 30, 2006. Agere is claiming that we are at impasse, which is not true. So the union (IBEW Local 1522) was left with no other alternative but to file charges with the National Labor Relations Board. If we are successful in our case, Agere will be forced back to the bargaining table.
Then, to add insult to injury, Agere mailed out the following letter:
July 2006
Important Information for Represented Retirees
Changes to Benefit Plans Effective 2009
Dear Agere Retiree:
Effective January 1, 2009, changes will be implemented in regards to your retiree benefits. The current post retirement benefit plans covering Agere's retired represented employees, and any applicable retiree contributions to those plans, will remain in effect until December 31, 2008. Effective January 1, 2009, the following management health and welfare and insurance plans will apply to all of Agere's U.S.- based retirees:
Agere Systems Inc. Medical Expense Plan for Retired Employees
Agere Systems Inc. Dental Expense Plan for Retired Employees
Agere Systems Inc. Vision Care Plan
Agere Systems Inc. Group Life Insurance Plan
Agere Systems Inc. Supplementary Life Insurance Plan
Agere Systems Inc. Long-Term Care Plan
Detailed information on changes and coverage terms will be available during the enrollment period for the 2009 plan year.
The pension plan covering represented retirees will remain the same.
If you have any questions about your current benefits or eligibility, please contact
the Agere Benefits Service Center at 1-866-340-2800.
Sincerely,
Agere Benefits Department
This letter only adds more fuel to the fire, by raising more questions. According to the above letter (and I quote) “Detailed information on changes and coverage terms will be available during the enrollment period for the 2009 plan year.” This implies that the information will not be provided to the Retirees until the Fall of 2008 regarding the dollar amount of their contributions. The fact is that under the Company’s proposal all Retirees will be paying the full cost of their healthcare coverage except for $100 per year paid by the Company.
The Company's proposal is totally unacceptable to the Union. The negotiating process is far from over and no one can say what the final outcome will be. But one thing is certain, IBEW Local 1522 is committed to use all its resources to get a fair contract. Remember, this is not going to be an easy fight and you, the Retirees, will play a very important role in its final outcome.
