HIGHLITES OF NATIONAL BARGAINED ITEMS
THREE (3) YEAR CONTRACT
GENERAL WAGE INCREASES
3% wage increase
3% wage increase
3% wage increase
June
1, 2003
May 30, 2004
May 29, 2005
Retroactive Pay Equivalent Payment will be made no later
than Friday, September 26, 2003.
AVAYA AWARD FOR REPRESENTED EMPLOYEES
Performance awards will be based on two (2) six month
performance cycles during the Avaya fiscal year. Eligible employees will receive two (2) lump sum payments in
each calendar year (one in the month of June and one in the month of December).
Performance cycle / Minimum Amount
/ Amount at Target
2003 2nd half
$270
$583
2004 Cycle 1
$270
$595
- Cycle 2
$270
$595
2005 - Cycle 1
$270
$607
- Cycle 2
$270
$607
2006 - Cycle 1
$270
$619
- Cycle 2
$270
$619
There will be no limitation on the maximum payouts.
Awards will be paid no-later than 75 days after the end of
the Performance Cycle and will be subject to applicable taxes.
SIGNING BONUS
All represented employees on the active roll will be
granted a Signing Bonus of $400.00 in the form of a cash payment.
Payment of the Signing Bonus is subject to ratification of the National
Memorandum and all local agreements by July 25, 2003.
Payment of the Signing Bonus shall be made no later than four (4) weeks
following such date unless ratification has not occurred by July 25, 2003. In such case, payment of the Signing Bonus shall be made no
later than four (4) weeks following ratification of the National Memorandum, and
all local agreements, whichever is the later date.
The Signing Bonus shall be subject to federal, sate and
local tax and FICA withholding and union dues.
PENSION BAND INCREASES
For Retirements on or after For Retirements on or after For retirements on or After
July 1, 2003______
July
1, 2004_______ July
1, 2005______
3%
3%
3%
ELIMINATION OF PENSION BAND 102
Effective July 1, 2003, pension band 102 is eliminated.
Any employee currently in pension band 102 and who retires on or after
July 1, 2003, shall have his or her pension calculated using pension band 103.
SERVICE BRIDGING RULES
Effective January 1 , 2004, The three year
requirement shall be replaced with a two year requirement.
Any employee who has completed two years of post absence consecutive service as
of January 1, 2004 shall have his or her former service bridged as of that date.
MEDICAL AND DENTAL BENEFITS
MEDICAL PLAN
Point of-Service
(POS) Option Co-payments.
Effective January 1, 2004, the following POS co-payments
will apply:
POS In-Network Office Visit
$15
POS Out-of-Network Hospital Admission
$200
POS Emergency Room Visit (if non-admission)
$50
Traditional Indemnity Option Deductibles
Effective January 1, 2004, the following annual deductibles
will apply to the Traditional Indemnity Option
Individual coverage
$250
Two-person coverage
$500
Family coverage
$750
Prescription Drug Program
Effective January 1, 2004, Prescription drug program
benefits will continue as before, except as modified below.
Copayments
1.
Brand
(a) Retail
(up to a 34-day supply)
$20
(b) Home-Delivery (up to
90-day supply)
$35
2.
Generic
(a) Retail (up to a 34-day
supply)
$8
(b) Home-Delivery (up to a
90-day supply)
$14
Mandatory
Home-Delivery
After three fills at the retail level, maintenance drugs will only be
covered by mail
order.
Dose
Optimization Program
1.
Implementation of the Notification Option, effective July 1, 2003.
2. Implementation of the
Coverage Option, effective January 1, 2005.
Select
Network
The
Select Prescription Drug Network will replace the Broad Prescription Drug
Network.
Smart
Prior Authorization Clinical Management Program
The following programs will be implemented:
1.
H2 Antagonists and PPIs (Proton Pump Inhibitors)
2.
COX-2 Inhibitors
3.
Antihistamines
4.
Impotence Management
5.
Migraine Management
Traditional
Prior Authorization Clinical Management Program
The
following programs will be implemented:
1.
Anti-Obesity Agents
2.
Central Nervous System Stimulants
3.
Miscellaneous Dermatologicals Accutane
4.
Tamoxifen
Mental
Health and Chemical Dependency Coverage
Effective
January 1, 2004, there shall be no co-payments for the first five (5) In-
Network
visits. Each subsequent visit will
be subject to a doctors office co-payment.
Referral
can be made by an Employee Assistance Program Counselor or Primary
Care
Physician.
Coverage
Opt-Out
Eligible
employees who op-out of Medical Plan coverage will receive a payment of
$55
per month. This is not available if
the employee can be covered as a dependent
of
another Avaya Inc. employee or retiree.
DENTAL PLAN
Schedule of Allowances
Effective January 1, 2004, schedule of allowances for the following
Type B
Procedures shall be increased by 10%:
2110 Amalgam
one surface, deciduous
2120 Amalgam
two surfaces, deciduous
2130 Amalgam
three surfaces, deciduous
2330 Resin
one surface (anterior)
2331 Resin two surface (anterior)
2332 Resin
three surface (anterior)
2335 Resin
(involving incisal angle)
2385 Resin
one surface, posterior permanent
2386 Resin
two surfaces, posterior permanent
2387 Resin
three or more surfaces, posterior permanent
4211 Gingivectomy
or gingivoplasty
4341 Periodontal
scaling and root planing
7110 Single
tooth
7120 Each
additional tooth
7210 Extraction
of tooth, erupted
7220 Extraction
of tooth, partial bony impaction
7230 Impaction
that requires incision of overlying
7240 Impaction/Comp
Bony
9220 General
9240 Intravenous
sedation
POSTRETIREMENT MEDICAL AND DENTAL BENEFITS
Retiree Medical Plan
Point-of-Service (POS) Option Co-payments
Effective January 1, 2004, the following POS co-payments
will apply:
POS In-Network Office Visit
$15
POS Out-of-Network Hospital Admission
$200
POS Emergency Room Visit (if non-admission)
$50
Traditional Indemnity Option Deductibles
Effective January 1, 2004, the following annual deductibles
will apply to the Traditional Indemnity Option:
Individual coverage
$250
Two-person coverage
$500
Family coverage
$750
Prescription Drug Program
Effective January 1, 2004, prescription drug benefits for
retired represented employees will continue as before, except as modified below:
Co-payments
(a) Brand
1. Retail (up to a 34-day
supply)
$20
2. Home-Delivery (up to a
90-day supply)
$35
(b) Generic
1. Retail (up to a 34-day
supply)
$8
2. Home-Delivery (up to a
90-day supply)
$14
Mandatory
Home-Delivery
After three fills at the retail level, maintenance drugs will only be
covered by Home
Delivery.
Dose
Optimization Program
The Retiree Medical Plan shall utilize the Dose Optimization Program
as follows:
1. Implementation of the
Notification Option, effective July 1, 2003.
2. Implementation of the
Coverage Option, effective January 1, 2005.
Select
Network
The Select Prescription Drug Network will replace the Broad
Prescription Drug
Network.
Smart
Prior Authorization Clinical Management Program
The following programs will be implemented:
1.
H2 Antagonists and PPIs (Proton Pump Inhibitors)
2.
COX-2 Inhibitors
3.
Antihistamines
4.
Impotence Management
5.
Migraine Management
Traditional
Prior Authorization Clinical Management Program
The following programs will be implemented:
1.
Anti-Obesity Agents
2.
Central Nervous System Stimulants
3.
Miscellaneous Dermatologicals Accutane
4.
Tamoxifen
Mental
Health and Chemical Dependency Coverage
Effective January 1, 2004, there shall be no co-payments for the
first five In-Network
visits.
Each subsequent visit will be subject to a $15 co-payment.
Referral can be
made
by an Employee Assistance Program Counselor or Primary Care Physician.
Coverage
Op-Out
Eligible retirees who opt-out of Retiree Medical Plan coverage will
receive a payment
of
$55 per month. This is not
available if the retiree can be covered as a dependant
of
another Avaya Inc. retiree or employee.
RETIREE DENTAL PLAN
Service
Fees
Effective January 1, 2004, service fees for the following Type B
procedures shall be
increased
by 10%.
2110
Amalgam one surface, deciduous
2120
Amalgam two surfaces, deciduous
2130
Amalgam three surfaces, deciduous
2330
Resin one surface (anterior)
2331
Resin two surfaces (anterior)
2332
Resin three surfaces (anterior)
2335
Resin (involving incisal angle)
2385
Resin one surface, posterior permanent
2386
Resin two surfaces, posterior permanent
2387
Resin three or more surfaces, posterior permanent
4211
Gingivectomy or gingivoplasty
4341
Periodontal scaling and root planing
7110
Single tooth
7120
Each additional tooth
7210
Extraction of tooth, erupted
7220
Extraction of tooth, partial bony impaction
7230
Impaction that requires incision of overlying
7240
Impaction/Comp Bony
9220
General
9240
Intravenous sedation
RETIREE MEDICAL AND DENTAL CAPS
Effective January 1, 2004, the amount of Company
contributions toward coverage shall
be determined in the same manner as immediately prior to
this 2003 National Memorandum. The
caps on the Company contributions to provide the combination of medical and
dental coverage for the term of this 2003 National Memorandum shall be as
follows:
2003
Under age 65
individual coverage: $4,488
Under age 65
two-person coverage: $8,496
Under age 65
family coverage: $12,948
Age 65 and
over individual coverage: $2,412
Age 65 and
over two-person coverage: $4,536
Age 65 and
over family coverage: $8,988
2004
Under age 65
individual coverage: $4,668
Under age 65
two-person coverage: $8,836
Under age 65
family coverage: $13,466
Age 65 and
over individual coverage: $2,508
Age 65 and
over two-person coverage: $4,717
Age 65 and
over family coverage: $9,348
2005
Under age 65
individual coverage: $4,854
Under age 65
two-person coverage: $9,189
Under age 65
family coverage: $14,005
Age 65 and
over individual coverage: $2,609
Age 65 and
over two-person coverage: $4,906
Age 65 and
over family coverage: $9,721
2006
Under age 65 individual coverage:
$5,048
Under age 65
two-person coverage: $9,557
Under age 65
family coverage: $14,565
Age 65 and
over individual coverage: $2,713
Age 65 and
over two-person coverage: $5,102
Age 65 and
over family coverage: $10,110
No retired employee shall be required to contribute towards
the cost of postretirement medical and dental coverage for the duration of this
2003 National Memorandum.
COVERAGE FOR OTHER COVERED CHARGES (OCC) UNDER
TRADITIONAL INDEMNITY OPTION
The Retiree Medical Plan shall be amended, effective
January 1, 2004, to provide an opportunity for Traditional Indemnity Option
participants to elect to purchase or increase OCC coverage as follows:
1.
Participants may elect to purchase or increase coverage, effective
January 1, 2004,
during the 2004 Annual Enrollment Period.
2.
Participants may elect to purchase or increase OCC coverage at
retirement.
3.
Participants may elect to purchase or increase OCC coverage upon
attainment of
eligibility for the Traditional Indemnity Option.
RETIREMENT POLICY ADVISORY COMMITTEE
The Committee shall discuss such issues as retiree
benefits, the feasibility of an ad hoc pension increase, legislation regarding
prescription drug coverage for Medicare beneficiaries; as well as other
legislation pertaining to retiree health care.
AVAYA INC. SAVINGS PLAN
Effective January 1, 2004, the Savings Plan shall be
amended as follows:
Eligibility
Regular full-time or part-time employees shall be eligible
to participate in the Plan upon commencement of employment.
Vesting
Participants shall be fully vested in the Company matching
contributions and their earnings upon completion of three years of Vesting
Service.
Contributions
Participants may contribute one to twenty-five percent of
their eligible weekly compensation, in one-percent increments.
Company Match
Eligibility Participants who complete six months of service shall
be eligible to
receive Company matching contributions.
Amount
The Company will contribute 66 2/3 cents for every $1 of matched
Contribution that a participant contributes up to 6% of eligible
compensation.
Roll-In
The Savings Plan shall accept roll-in contributions from
qualified Section 457 and 403(b) plans.
Catch-Up
Participants may make catch-up contributions as provided in
Internal Revenue Code
Section 414(v).
Distributions
Termination Automatic distribution at termination of employment
shall be made
using the then current limit for automatic distributions under Internal
Revenue Code Section 411(a)(11).
Minimum Required Distribution The Minimum Required Distribution
at age 70 ½
will be calculated using the Uniform Life
Expectancy Table.
Investments
Fund Exchanges Participants must make fund exchanges in one
percent
Increments instead of 5% increments.
Future
Investment Allocation of future investment options must be in one
percent
increments instead of 10% increments.
Loans
Residential Loans The Savings Plan shall offer Participants a
residential loan
feature, which Participants may utilize for the purchase of a
primary residence.
Residential loans must be repaid within 175
months of distribution. All
other Savings Plan loan provisions
shall apply to residential loans.
EFT
Repayment Participants may repay any outstanding loans following
termination
through Electronic Funds Transfer or coupon payment.
Hardship Withdrawal Suspension
Contributions following a hardship withdrawal shall be
suspended for six months instead of 12 months.
EMPLOYEE ASSISTANCE PROGRAM (EAP)
Effective January 1, 2004, the number of visits to an
in-network Employee Assistance Program Counselor is increased from three (3) to
five (5).
WORK & FAMILY PROGRAMS
Dependent Care Reimbursement Accounts
For the Plan Years 2004 through 2006, the Child/Elder Care
Reimbursement Account Plan shall be amended to provide for a Company matching
contribution equal to twenty-five percent of employee contribution.
Total Plan contributions for each employee may not exceed $5,000 per
year.
Reimbursement Accounts
Effective January 1, 2004, the Health Care Reimbursement
Account and Child and Elder Care Reimbursement Account Plans shall be amended to
provide that participants must contribute a minimum of $200 per year.
Family Care Development Fund
Effective June 1, 2003, the Care of Newborn Child Leave is
consolidated with the Family Care Leave program. Family Care Leave may be taken for up to twelve months once
every 12 month period for:
1.
Care of a family member who has a serious illness or injury, or requires
major
surgery; or,
2.
Care of a newborn or newly adopted child.
The Family Care Development Fund is suspended for the
duration of the 2003 National Memorandum of Understanding.
The Company agrees to continue funding projects approved prior to May 31,
2003.
All other provisions of the Family Care Leave program shall
remain the same.
OPTIONAL PROPERTY AND CASUALTY INSURANCE
The Company shall offer active employees the opportunity to
purchase, through after-tax payroll deductions, Property and Casualty Insurance.
LONG TERM DISABILITY PLAN
Effective January 1, 2004, active employees will be
provided the option to purchase, through pre-tax payroll deductions, additional
LTD Plan coverage equal to ten percent of Eligible Base Pay, as defined under
the LTD Plan.
LIFE
INSURANCE PLAN
Effective January 1, 2004, the Avaya Inc. Life Insurance
Plan (Life Insurance Plan) shall be amended as follows:
Total
Annual Pay (TAP) TAP is equal to Base Pay plus Annual Avaya Performance
Award Target Payment Amount as of September 10 of the
Prior Plan Year, rounded to the next higher $1,000.
Non-Tobacco
User Discount Non-tobacco users will be eligible for a ten percent
Discount on Supplemental Life Insurance premiums.
Supplemental
Life Supplemental Life Insurance will be provided on a group
Universal Life basis, subject to the Insurers terms and conditions
As stipulated by the insurer.
LABOR EDUCATION AND DEVELOPMENT FOR THE 21ST CENTURY (LEAD
21)
A minimum of 40 hours of skill based or job related
training each calendar year for all employees.
The forty (40) hour minimum will be prorated for mid year
hires, and employees who work less than a full year.
Transition to
Teaching Program eliminated
The Avaya/CWA/IBEW
Academic Award ten (10) scholarships of up to $6500 per year (renewal
for up to four years) to be awarded to children of represented Avaya Inc.
employees, for the 2004-05, 2005-06 and 2006-07 academic years.
2003 Retirement Incentive Program
A one-time retirement incentive program to eligible
employees. Eligible employees who
volunteer to retire under this program will receive a 12% increase to the value
of their pension band.
To be eligible, an employee must:
1.
As of August 1, 2003, either be active or on a leave of absence with
guaranteed right
Of reinstatement;
2.
On or before August 14, 2003, satisfy the Plans minimum age and
service
Requirements for a Service Based
Pension;
3.
Submit an irrevocable request to participate during the August 1, 2003
through
August 14, 2003, enrollment
period; and,
4.
Retire, effective August 31, 2003, subject to extension through December
31, 2003,
At the discretion of the Company.
