BULLETIN 12
March 20, 2007
Negotiations between NABET-CWA and ABC, Inc. resumed today at 10:00 A.M.
This morning, nearly three weeks into bargaining for a successor contract, and only eleven days before the current contract expires, ABC representatives put on the table, for the first time in these talks, a proposal to totally freeze the ABC-NABET Retirement Trust defined benefit pension plan, effective December 31, 2007.
The NABET-CWA Network Negotiating Committee and Union Trustees immediately expressed their outrage and disappointment to the Company Committee about the scope and timing of this proposal. Dennis Allen, a Plan Trustee for 14 years, told ABC representatives, "Your proposal is unethical, immoral, and you should be ashamed of yourselves."
After hearing ABC's presentation, NABET-CWA Sector President and Chief Spokesperson John S. Clark, told the Company that the Union would caucus until further notice to review this proposal in the context of ABC's other proposals that include undermining seniority, reducing paid time at work, and subcontracting bargaining unit work. Talks ended for the day at 11:00 A.M.
The Union Committee, in its initial review of ABC's pension proposal, has determined that at age 65, the average plan participant's benefit would be reduced by nearly 25%. ABC made this devastating proposal despite admitting earlier in these talks that our Plan is healthy and that the Trustees have made prudent investment choices. Disney/ABC representatives also admitted to the Union Committee that, in 2006, the Company contributed more than $360 million into its three other defined benefit pension plans.
In a previous session, Disney representatives stated that the Walt Disney Company is considering its options with regards to modifications of its other defined benefit pension plans, but that final decisions have not been made. The NABET-CWA Network Negotiating Committee believes that if the Company is proposing a hard-freeze for the best-funded defined benefit plan for which the Company has financial reporting responsibility, that all Walt Disney Company employees should have reason to be concerned.
The Union Bargaining Committee will post the Company's pension proposal as soon as possible on the Sector website at www.abc-contract.info.
NABET-CWA Network Negotiating Committee
For an archive of all bulletins, go to www.abc-contract.info/barg_mobe/.
