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Letter from the Vice President of the CWA T&T Office

October 6, 2020

To: All Nokia Local Presidents

Subject: Ratification - Nokia and Good Agreement

Dear Brothers and Sisters:

As we near the ratification date of the Nokia and Goodman Agreements I wanted to express to you how important it is that all of our dues paying members let their voice be heard. Just like in the presidential elections this ratification is personal. Each and every member has their own unique situation and should vote in what is in their best interest.

I would like to tell you why I support the Agreements and fully endorse their ratification. As Vice President of the Telecommunications and Technologies Sector I see what is going on with all telecommunications employers both big and small as well as what is happening across all sectors of our Union.  

Nokia, for the last two and a half years, has stated that they have made a core entrepreneurial decision to go to a third party model for service delivery. In making that decision they have claimed it is due to cost, flexibility and agility. The Bargaining Team has utilized all of CWA’s resources to fight this. We have filed lawsuits, NLRB charges, grievances and arbitrations. All of this was done in an effort to preserve the Bargaining Unit. The Effects Agreement coupled with the Goodman Collective Bargaining Agreement and job offers to all 201 Installers accomplishes this.  

I trust the Bargaining Team. They have worked hard on your behalf for the last two and a half years. If they say this is the best we can do and it’s the right thing to do I believe it.   These Agreements extend retiree healthcare for an additional 3 years (through calendar year 2027), increases pension bands by 7%, and provides the equivalent of severance pay with an adder and an additional $30,000. The Goodman contract is a first time contract that has much of the same core language as the current Installation contract. Yes, the pay is reduced but is higher than the average wage for communications equipment Installers. The Effects Agreement is intended to help offset the loss of wages. In addition, the Goodman contract protects bargaining unit work from erosion by subcontractors. Something that the Nokia contract does not have today.

Setting aside Goodman for the moment, if we have to go back to the table and continue to negotiate cost, flexibility and agility with Nokia those same wages and terms of working conditions would have to be on the table. The difference is Nokia doesn’t have to accept them. Additionally, the effects agreement would not be there to help offset it.

There is a lot of wild speculation regarding the Nokia pension plan. Let’s look at the facts. The LTPP is one of the most highly overfunded plans in our country today. It is protected by ERISA and the PBGC. The plan sponsors have a fiduciary responsibility to the plan and can only use the overfunding that is above 120% for retiree healthcare and group life insurance.  Since what is currently on the table is the extension of retiree healthcare through 2027 through a separate Memorandum of Understanding, and the company’s cost comes out of the overfunding, the company will want to ensure that it is funded above 120% for the next seven years. Whatever happens after that period of time is still governed under ERISA. CWA will continue to negotiate retiree healthcare for this period of time. In addition, the Taft Hartley Trust, which is jointly administered, has just under $200,000,000 in it. We will continue to leverage that to the benefit of the retirees.

In closing, I again want to reiterate that every voice counts and every vote is personal. Do what is in your best interest and the interest of your family. That is what drove the Bargaining Team and that is why I support their decision to take these Agreements to ratification.

Sincerely,

Lisa M. Bolton, Vice President
CWA Telecommunications & Technologies