CenturyLink of MO Final Bargaining Report

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1 CenturyLink of MO Final Bargaining Report November 26, 2014 The Communications Workers of America and CenturyLink of MO reached an agreement after reviewing the Company s last package offer. The highlights of the agreement are outlined below. The Bargaining Committee recommends this agreement for ratification. Face-to-Face Explanation Meetings (Please Contact Local Union for details): Dec 1st - Cameron (6373) Dec 2nd - Springfield (6312) Dec 3rd - Cabool (6312) Dec 4th - Monroe City (6311) Dec 5th - Columbia (6301) Dec 8th - Ironton (6300) Dec 9th - St James (6300) Dec 10th - St Louis (6300) Duration New agreement is 3 years Wages 1 st Year 1.25% Base Increase plus $600 Lump Sum 2 nd Year 1.50% Base Increase plus $600 Lump Sum 3 rd Year 1.75% Base Increase plus $600 Lump Sum Retroactivity on all wages back to March 14, 2014 * Customer Care Specialists are excluded from Lump Sum option because they were not receiving the TPA. Wage increases will be applied to the table across the board but employees who are still above the top wage in the table will receive their wage increases in the form of lump sum. Discussion (Wages) The Union initially went to the table with a 10% wage increase per year to make up for not getting raises during previous contracts. The last proposal we passed was 3% per year of the agreement. Comparison o CWA 6300, 6301, 6311, 6312, 6373 (MO) I&R $27.13 CO $27.57 o IBEW 20 (TX) I&R $26.61 CO $26.61 o CWA 6171 (AR) I&R $26.55 CO $28.00 o CWA 6174 (TX) I&R $26.42 CO $27.45 o CWA 6372 (MO/KS) I&R $26.20 CO $27.58 o IBEW 2 (MO) I&R $26.43 CO $27.86 o IBEW 257 (TX)

2 I&R $27.13 CO $27.57 o Average I&R $26.63 CO $27.59 Customer Care Specialist o Initially proposed an upgrade to Job Group 4 and kept the proposal active until the end of bargaining. Healthcare No Changes (Negotiated at National Table) Pension Current Employees Protected defined Pension Plan and retained the Lump Sum payout option. Savings Plan Current Employees o Effective March 15, 2014 employees will receive a $0.82 match per $1.00 o Effective March 15, 2015 employees will receive a $0.62 match per $1.00 o Effective March 15, 2016 employees will receive a $0.58 match per $1.00 New Employees o Enhanced 401k Option for new hires after July 1, 2015 which includes a $0.58 match per $1.00 Discussion (Pension and Savings Plan) The Union initially went to the table with numerous proposals to protect the defined pension plan and maintain our current savings plan. o Attempted a proposal keeping current pension rate and 401k match but in order to keep the match we would have had to agree to freeze the pension plan. Currently the Texas pension plan bands are all frozen. Article 2 Recognition and Area Designation Southwest Area Exchange now includes; Grove Spring, Hartville, Manes, Mountain Grove, Nebo, Norwood, Sparta, Theodosia, and Wasola. Retail Store O Fallon Store changed to St. Peters Store. Part Time Employees Defined as someone who is normally scheduled to work no more than 30 hours per week. Article 5 Arbitration A grievance can be submitted for arbitration only during the term of the agreement. Increased due date for requesting arbitration from 15 workdays to 30 calendar days. Article 6 Vacations All vacation must be used from the previous year at least one week prior to June 30 th. Article 7 Holidays Increased allotment of Personal Holidays from 6 days to 7 days. Decrease from 2 ½ times straight time to 2 times straight time for overtime on a holiday.

3 Article 8 Leaves of Absence Administrative/Personal Leaves a leave may be granted by the Company once the employee has 6 months of service and exhausted all vacation time. The leave can be from 5 days up to 30 days. Disability Leave a leave may be granted by the Company if an employee may need more time to recover from a bona fide disabling illness or injury. Article 9 Other Excused Absence Employees are no longer required to reimburse monies received for jury duty to the Company. Article 10 Contracting At the discretion of management, due to service requirements, employees covered by this agreement may be required to work at other Company location outside the bargaining unit jurisdiction. Similarly, employees from other bargaining units may be required to work at Company locations within the bargaining unit jurisdiction performing bargaining unit work. The parties agree that the assignment of bargaining unit work to non-unit employees and the assignment of non-bargaining unit work to bargaining unit employees as permitted under this agreement is not intended in any way to affect the separate community of interest shared by each group of employees, nor to result in an accretion of one group of employees into another. Article 11 Safety, Security, and Health Safety Footwear may be required for all job titles within the bargaining unit; excluding retail and/or clerical. Employees will receive reimbursement up to $150 towards the purchase of safety boots. Safety Shoes and request for reimbursement needs to be completed prior to December 31, Article 14 Telephone Service Bargaining Unit employees are eligible for the same concessions as all employees. Article 16 Short Term Disability The following table is effective May 1, If your length of service is: Then benefits at 100% of Base Salary are paid for: And benefits at 60% of Base Salary are paid for: Less than one year None None 1 yr but < 2 yrs 2 weeks 24 weeks 2 yrs but < 3 yrs 4 weeks 22 weeks 3 yrs but < 4 yrs 6 weeks 20 weeks 4 yrs but < 5 yrs 8 weeks 18 weeks 5 yrs but < 6 yrs 10 weeks 16 weeks 6 yrs but < 7 yrs 12 weeks 14 weeks 7 yrs but < 8 yrs 14 weeks 12 weeks 8 yrs but < 9 yrs 16 weeks 10 weeks 9 yrs but < 10 yrs 18 weeks 8 weeks 10 yrs but < 11 yrs 20 weeks 6 weeks 11 yrs but < 12 yrs 22 weeks 4 weeks 12 yrs but < 13 yrs 24 weeks 2 weeks 13 yrs or > 26 weeks 0 weeks

4 Sick Leave Starting May 1, 2017 employees will no longer have sick leave for incidental absences and will be required to use vacation time when calling in sick. Employees with four or more weeks of vacation who have exhausted all other personal holiday hours and vacation except for one week, shall have the option of using vacation to receive pay while absent, or take the time as unpaid. Article 19 Wages In-charge or Lead Person pay increased to a $1.75 per hour. Wage progression Wage increases will be effective the first day of the pay period closest to the effective date of the increase. Compensated Availability Increased to $35.00 for a non-scheduled work day. Article 22 Dues Deduction The Company is required to give the Union 30 days notice in the event they stop automatic dues deduction when a contract is expired. Article 26 Overtime and Sunday Time Non-scheduled Sunday time work will be paid at 1 ½ times straight time and will be included on the overtime report. Scheduled Sunday time work will be paid at a premium rate at 1 ½ times straight time and will not be included on the overtime report. Article 30 Board and Lodging Meal allowance will not exceed $36.00 per day. Partial Day Per Diem o Breakfast - $8.00 o Lunch - $10.00 o Dinner - $18.00 Article 31 Force Adjustment No Reduction in Headcount Overall. In cases of work force adjustments where the Company has determined a need to reduce a job classification in one reporting location and increase it in another reporting location, the Company will give consideration to volunteers on the basis of qualifications and seniority in the reporting location being reduced and transfer the required number of qualified employees to the reporting location being increased. If there are not enough volunteers, the Company may affect a transfer under the following guidelines: The employee(s) to be transferred may bump the least senior employee in the same area in the same job title. It is understood and agreed that an employee exercising a bump right has no choice of work location(s). Rather, the employee must bump the least senior employee in that job title in that area. When the employee s reporting location is changed which requires a change in residence (defined as 50 miles or greater driving distance one-way from their current reporting location to the new reporting location), the Company shall pay physical moving expenses in accordance with the CWA Hourly Relocation Plan. The payout of moving expense packages shall not exceed the number of positions reduced from the original location(s). Seniority shall be the determining factor when the requests for moving expense exceeds the number of positions reduced from the original location(s). In the event the least senior employee is required to transfer to a new reporting location as a result of the Company s decision to adjust the work force in

5 accordance with this section, the least senior employee shall have first right of acceptance for any future vacant positions in his job title (from which he was displaced) in his former exchange for a period not to exceed twenty-four (24) months from the effective date at the new reporting location. The employee shall be required to inform the Company of their intent to return to their former reporting location within fourteen days from the date of the job vacancy notice. An employee electing not to transfer to a new reporting location to remain employed will be considered to have voluntarily terminated and shall not be considered a permanent layoff. Only an employee eligible for relocation expense and electing not to transfer to a new reporting location shall be eligible for termination pay in accordance with Article 32. Article 32 Termination Pay Termination Pay will be received in a lump sum and will not exceed $38,000. Article 38 Recognition and/or Incentive Program All customer contact employees may be required to make referrals of Company products and services and perform informal and direct sales work as part of their normal job duties. Memorandum of Agreements Home Dispatch Renewed/No Changes Hourly Relocation Plan Renewed/No Changes Lump Sum Payout Option Renewed/No Changes Lump Sum Payout Option/Death Benefit Renewed/No Changes Voluntary Employees Beneficiary Association (VEBA) Renewed/No Changes Hourly-Paid Employees Pension Renewed/No Changes CWA COPE Renewed/No Changes IPTV Negotiated a LOU for job protections for jobs of the future. Team Performance Award Removed In Solidarity, Your Bargaining Committee

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