News

Executive Level Grievance on 2013 Lucent Performance Plan - Settled

30 Jun, 2015

Alcatel-Lucent and the CWA have agreed to settle the Performance Plan Grievance for $85 a person -- a total payout of $89,250.

When our members in Alcatel-Lucent did not get a Lucent Performance Plan award for 2013 we filed an Executive Level Grievance.

The Company's position was that they were denying the grievance because the May 24, 2013 Contract Extension did not include a Performance Plan Provision for 2013. The last year of the Performance Plan mentioned in the 2004 CBA was for 2012. The Union’s position was that the Company approached the Union requesting the extension and outlined a limited number of issues it wanted to address. The Union, in agreeing to the extension, also raised certain demands and our assumption was that if it was not raised by either party, everything else would be brought forward.

The Company refused to arbitrate the issue on the basis that the Performance Plan itself is not arbitrable. We argued the issue being arbitrated was not the Performance Plan itself but the intent of bargaining concerning the Extension Agreement itself.

The CWA Legal Department filed a suit in Federal Court to either compel arbitration or make a judgement on the issue itself.

Following discussions with Ralph Maly, Bill Bates and me our attorneys advised us, that although they understand that the extension bargaining was extremely limited in the issues it discussed, we did extend retiree health care, we did extend active health care, we did bargain a wage and pension increase and we did extend funding for the Alliance. We did not explicitly extend the Performance Plan. Also, there is language in the extension which says: “this Agreement shall continue in effect in accordance with its own terms until 11:59 on May 24, 2014, notwithstanding that certain provision may terminate prior to the expiration of this agreement.”

Because of this our attorneys felt that our chances of prevailing in Courts were minimal. After numerous offers and counter offers the Company refused to go above $85 a person. It was a choice of taking that or going through a long and costly process in court which we most likely would not have won. Since this settlement covers everyone on the payroll at the time from installation, Bell Labs, Operations and RDS&S, a total of 1,050 will receive the settlement amount totaling a $89,250 payout from Alcatel-Lucent.

I know this is not what we wanted or what we think we deserve but at least Alcatel-Lucent is forced to pay over $89,000 it had no intention of paying.

Payroll has confirmed this payment will be made on Wednesday July 1st. Current employees will receive this in a separate check and the payment will be processed the same as their regular pay (i.e., electronic transfer or bank card). Former employees will receive the payment by check mailed to their address of record.