Ameritech and IBEW Reach Tentative Agreement on Three-Year Contract

Strategic Insights -

Ameritech, one of the world's largest communications companies, and the International Brotherhood of Electrical Workers (IBEW) have concluded talks on a new three-year contract. The union has notified Ameritech that it will submit the current proposal to its membership for a vote, but union leaders have indicated that they will not recommend ratification. The proposed contract addresses various issues, including wages, benefits, pensions, retiree health care, and employee training and retraining. The proposal includes generous wage increases, benefit improvements, pension band improvements, and education and training enhancements.

Key Takeaways:

  • The proposed contract includes a 10.3% total increase in base wages over the next three years, with an immediate first-year increase of 3.5% and 3.4% increases in the second and final years.
  • The proposal includes a $500 lump sum bonus for employees.
  • The revised success-sharing arrangement includes a minimum guaranteed annual payout and enhancements to business unit incentive plans.
  • Benefit improvements include additions to vision and dental care plans, an expanded prescription drug plan, and a guarantee of no health care premium for active employees who retire during the term of the agreement.
  • Pension band improvements ranging from 12% to 15%.
  • Employment security provisions include job assurances.
  • Education and training improvements aim to equip employees with skills and training to adapt to rapidly changing technology and the expanding communications industry.

Statistics:

  • Approximately 11,500 of Ameritech's nearly 40,000 bargained-for employees are represented by the IBEW.
  • The IBEW represents 11,200 technical personnel in Illinois and 300 in Indiana.
  • There are no Ameritech employees represented by the IBEW in Michigan, Ohio, or Wisconsin.
  • Ameritech serves more than 13 million customers, providing a wide array of local phone, data, and video services in five states.
  • The company has approximately 1.5 million cellular and 700,000 paging customers.

Sources:

  • IBEW press release, June 27, 1995
  • Ameritech press release, June 27, 1995
  • Corporate records, Ameritech, 1995
  • News release, Ameritech, June 27, 1995