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HIGHLIGHTS
OF
2006 CONTRACT NEGOTIATIONS
BETWEEN
CWA LOCAL 13500
AND
VERIZON INFORMATION SERVICES –
VALLEY FORGE DIRECTORY GRAPHICS

Wages/Economic Issues:

1. General wage increases: June 4, 2006 = 3.5% of basic weekly wage rate, One-time lump sum payment of $750.00 to every active employee no later than the first regular paycheck in 2007, June 3, 2007 = 3% of basic weekly wage rate and, June 1, 2008 = 3% of basic weekly wage rate.  (Wage Rate Progression Tables are attached.)

2. The Performance Incentives were increased in each year of the contract while the minimum payout remains the same at $600.00: Plan Year 2007 = $1,600.00 to $2,500, Plan Year 2008 = $1,700 to $2,750 and, Plan Year 2009 = $1,750 to $3,000.  The Company renewed its commitment that at least 90% of eligible employees will receive at least the minimum payout in each of these three Plan Years.  The Company also agreed to review the performance coefficients and employee progress with the Union on a quarterly basis.  Previous letter was replaced with a new letter stating the above.

3. Beginning January 2007 change 37.5 hour week to 40-hour week with increase in weekly pay rate equal to the additional 2.5 hours per week.  (See the Wage Rate Progression Table for the rates that go into effect on December 31, 2006)

4. Change Definitions Section of Contract to reflect the new 40-hour work week, including when overtime is paid.  Change the Overtime Article to show that overtime will be paid after 40 hours instead of after 37.5 hours.

Benefits:

1. No changes in the current Pension Plan or the Medical Benefits Plan(s) provisions in the contract.

2. The Company committed to review the 2007 Employee Benefits Renewal communications with the Union in the fall of 2006.

Job Security Issues:

1. 3-Year contract expiring on June 6, 2009

2. The Lay Off notification procedure was improved by:

1. Increasing the amount of time of notification from 40 days to 60 days, and
2. Increasing the number of weeks to notify an individual from 3 weeks to 4 weeks or receive pay for 4 weeks.

3. Improved the payout under the Income Security Plan (ISP) from $1,000 for each year of service to $1,100 for each year of service.  And, change the maximum payout from $30,000 to $33,000.

4. Increased the ISP Expense Allowance from a maximum of $2,500 to $3,750.

5. A special “Voluntary Separation Enhancement” agreement will increase the ISP pay out by $400.00 per year of service, up to a maximum of $45,000, should there be a force reduction between June 4, 2006 and December 31, 2007.

6. Increase in the Termination Payments by adding an additional ½ week’s pay to the current one week’s pay for each year of service over 10 years up to a maximum of 40 weeks’ pay.  (i.e. 11 years service = 11 ½ weeks pay, 12 years service = 13 weeks pay, etc.)

7. A special Letter confirming that the Company’s current business plan includes the continued publishing operation at the Valley Forge facility.

Additional Changes/Improvements:

1. One additional Personal Day will be permitted beginning January 2007.

2. Beginning January 2007 one Personal Day or Vacation Day, at the employee’s choice, may be taken in one-hour increments.  An additional day may be taken in one-hour increments beginning January 2008 if the first year’s program proves successful.  At least one day will be permitted to be taken in one-hour increments for the life of the contract.  (This is detailed in a separate Letter Agreement in the new contract.)

3. Military Leave was improved by permitting 3 additional paid days.

4. Death-In-Family absence was improved by allowing 2 days off for the death of grandparents, great grandparents, grandchildren and great grandchildren.

5. Include a Pay Grade 8.5 in the Wage Rate Tables.

6. Establish a 4-Day work week trial for one year beginning December 2006, with an advance pilot to begin prior to year-end 2006.  One measurement of success of the trial and pilot will include Employee satisfaction.  Replace previous letter on the 4-Day work week trial.

7. The letter permitting transfers to other Idearc bargaining units was replaced by an up to date letter providing the same opportunity.

8. The letter agreement regarding the Tuition Assistance Plan was replaced by a new letter requiring that employees receive a grade of “C” (a C- is counted as a C) or above to avoid repayment of approved tuition and fees to the Company.

9. A Letter Agreement to schedule a Mutual Interest seminar to include the Union Officials and Managers/Supervisors.  Additionally, to establish and encourage Process Improvement Teams composed of employees and management.

10. Removed the letter regarding Communications Allowance.

11. Removed the letter regarding a trial of a third tour for each shift.