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BellSouth Workers Give OK for Strike ; ET Members Vote for Giving Union Authority to Call Work Stoppage

Posted on: Thursday, 5 August 2004, 06:00 CDT

Local BellSouth union workers voted overwhelmingly Tuesday to authorize a strike against the Atlanta-based telecommunications company.

The Communications Workers of America Local 3805 is among organizations throughout BellSouth's nine-state region voting on whether to give the union power to authorize a strike, should the union and BellSouth fail to reach agreement on a contract set to expire Saturday at 11 p.m.

The union represents about 700 employees in East Tennessee. About 750 employees work for BellSouth in East Tennessee. The company employs 3,766 union workers out of 4,778 total employees across Tennessee.

Both CWA and BellSouth officials called the vote "routine." BellSouth's union workers haven't gone on strike since 1983.

But local CWA President Debbie Helsley said this round of negotiations is more contentious than in the recent past.

At issue are health benefits and job security concerns, as BellSouth adopts new technologies that require new job skills, Helsley said.

"From everything I have been told, at this juncture in negotiations in previous contracts there has been a lot more progress to a settlement," she said.

Specifically, Helsley said, the union objects to increases in medical co-payments and prescription-drug expenses under a restructured, two-tier health plan. And she said the union wants to ensure its workers have access to new jobs created around new wireless and Internet technologies, and to ensure they aren't replaced with part-time workers.

Helsley said a successful company like BellSouth should take better care of its employees.

"Since 2001, BellSouth's net profits are up 46.7 percent. Their profit per employee in 2003 was $47,224 ... (a) 69.6 percent increase over 2001. They've posted productivity gains of 8.5 percent since 2001. They have a low debt ratio and the strongest bond rating in the industry. They increased dividends by 42 percent in the last nine quarters," she said. "Obviously BellSouth is a very sound company."

But Kenny Blackburn, vice president of external affairs for BellSouth's Tennessee office, said, "It's not that simple."

He said BellSouth is facing increasing competition and the loss of its core telephone business, a tough economy and an uncertain regulatory environment.

"I think BellSouth and the union together recognize there are dramatic changes in our industry," he said.

Related to health care, he said, BellSouth has historically paid stellar benefits, and until now employees have not had to pay any premiums toward their coverage.

But, he said, BellSouth's need to become more competitive "requires a brand new partnership between the company, its employees and its retirees" and the company is asking that "all employees share in the cost."

Blackburn said he doesn't believe the disagreements will result in a strike.

"We expect to achieve an agreement with the union as we always have," he said.

Business writer Larisa Brass may be reached at 865-342-6318.

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