CWA/AT&T Advertising Solutions Bargaining Highlights

December 22, 2009

DURATION

·         Four-year Contract expires December 6, 2013

EARLY RATIFICATION AWARD

·         The Company will grant four (4) Special Christmas Days paid at salary for time between Christmas and New Year 2009 as a ratification bonus

·         $500 ratification bonus on or before the second payday after ratification

·         To receive the $500 Ratification Bonus, agreement must be ratified by January 28, 2010

·         Letter explaining that should the Tentative Agreement not ratify, the $500 ratification bonus will not be paid

WAGES - NONCOMMISSION EMPLOYEES

·         Average general wage increases for non-commission employees compounded to 11.75%.  Percentage wage increases will be applied exponentially, with no change to the start rate:

-   Base Wage Increase of 2.75% effective December 5, 2009

-   Base Wage Increase of 3% effective February 6, 2011

-   Base Wage Increase of 2.75% effective February 5, 2012

-   Base Wage Increase of 2.75% effective February 13, 2013

TEAM PERFORMANCE AWARD PLAN (TPA)

·         Renewed the Team Performance Award Plan (TPA) for non-commission employees, which will be received in 2011, 2012 and 2013 for performance years 2010, 2011 and 2012, respectively.  A minimum amount guarantee is included.

COMMISSION EMPLOYEES

·         Incorporated Senior Account Representatives and Cyber Representatives into Article XXVI

·         Substantial increase in base wages for Account Representatives, Sales Representatives, Senior Account Representatives and Cyber Representatives.  Based salaries increased as follows:

·         Average pay will include internet Yellow Page sales.

	Current Salary at Top	1st Year New Salary at Top	2nd Year New Salary at Top	3rd Year New Salary at Top	4th Year New Salary at Top
Account Representative	$16,952	$20,020	$22,126	$24,440	$27,014
Sales Representative	$13,988	$16,016	$17,264	$18,590	$20,020
Sr. Account Representative	$35,022	$35,022	$39,442	$44,408	$50,024
Cyber Representative	$31,200	$31,200	$31,850	$32,526	$33,202

·         Increased commissions on renewal/ITA gated compensation plan.  Renewal and Increase to Advertiser (ITA) gates for Account Representative, Sales Representative, and Sr. Account Representative channels detailed below:

	Account Representative		Sales Representative		Sr. Account Representative
	Renewal	ITA	Renewal	ITA	Renewal	ITA
Gate 1 Gate 2 Gate 3 Gate 4 Gate 5	15% 20% 25% 30% 35%	120% 140% 170% 205% 220%	14% 20% 25% 30% 35%	85% 95% 120% 150% 200%	12% 15% 20% 23% 28%	100% 125% 150% 175% 200%

      New business gates for all sales channels detailed below:

	AR	SR	SAR	Cyber
Gate 1	225%	200%	200%	120%
Gate 2	275%	250%	275%	150%
Gate 3	300%	275%	300%	200%
Gate 4	350%	300%	350%	250%
Gate 5	400%	350%	400%	300%

·         New gated commission plan.

·         Increase to commissions based on Increase to Advertiser (ITA) attainment

·         All revenue paid on same gated schedules, not objective based, no separate P-Pool, no foreign

·         Renewal - when 3% increase not achieved, commissions shall be paid at 15% on revenue renewed for Account representatives, 14% for Sales Representatives and 12% for Sr. Account Representatives

·         Earnings and gates based on cumulative gross ITA sales

·         Earnings based on annual publishing cycle instead of campaign

·         Rollover credit of new sales toward new business gates of next cycle

·         Balance general market +/- 20%

·         IYP Long term agreements count toward increase to advertiser (ITA) gate attainment for commission purposes

·         Losses on subsequent assignment may be returned to the original rep after the 50% mark

·         All-In compensation plan reflects customer total spend

·         Debit proration plan for repayment of commission advance recoveries (chargebacks)

·         Monthly auto allowance increased from $275/mo to $300/mo. 

·         Daily auto allowance increased from $10/day to $12.00/day

·         Between Market mileage increased from 12¢/mi. to 17¢/mi.

·         Laundry expense increased from $15 to $30

·         Long Term Parking allowance increased to a maximum of $9/day to $12/day

·         New Products Article simplified

·         Extended MOU Regarding Cellular Service, added data package as reimbursable item and increased allowance for SAR/AR to $75/$30 CSS

·         Extended MOU regarding Commission Splitting on referred accounts between P and T

·         Extended MOU regarding Treatment of Account Packages involving NYPS activity and incorporated language into Article XXVI

·         Extended letter on transfers to Account Representative position

·         Extended letter on transfers to Senior Account Representative position

·         Extended MOU Regarding Make Goods

·         Letter regarding Transition Severance Offer to offer an option for commissioned representatives with seventeen (17) or more years of service to leave the company with an enhanced severance payment equal to 120% of the amount computed as determined in Article XVIII, Employment Terminations, for a three month period in 2010 and again in 2011.  Sr. Account Representatives severance pay will be calculated at two times their base salary.

·         Letter from Union to meet annually at the conclusion of each publishing cycle to review the new commission plan's impact on earnings.

·         Letter from Company committing to meeting with Union and Cyber Sales organization management team to discuss ideas to reduce the turnover rate

VACATIONS

·         Vacation will now be on an accrued basis vs. granted

·         Extended Vacation "Portability" MOU life of agreement

*     Excused Work Days can be carried over into the following year

EXCUSED WORK DAYS

·         All EWD's can be taken in 2-hour increments

SPECIAL CHRISTMAS DAYS

·         All employees would be given an additional Special Christmas Days (3) paid at salary for each of the years 2010, 2011 and 2012 during Christmas week. The Company would designate one (1) Excused Work Day within the years of 2010, 2011 and 2012, and the Company would be closed the week between the Christmas and New Year holidays.

TRAVEL

·         Mileage for authorized use of personal vehicle will increase to .42 cents per odometer mile effective 01-01-2010, effective 01-01-2011 increased per odometer mile .43 cents, effective 01-01-2012 increased per odometer mile to .44 cents, effective 01-01-2013 increased per odometer mile .45 cents, not to exceed allowable IRS maximum.

·         Long Term Parking allowance increased to a maximum of $9/day to $12/day

BILINGUAL DIFFERENTIAL

·         Extended Bilingual differential to all employees identified by management.

HEALTH PLAN CHANGES FOR ACTIVE EMPLOYEES

Current Plan stays in effect for 2010 calendar year

Health Care Premiums, effective January 1, 2011

New Hires

Coverage Tier	2011	2012	2013
Ind	$35	$35	$35
Family	$75	$75	$75

Working Spouse Contributions will no longer apply.

Current Employees

Coverage Tier	2011	2012	2013
Ind	$15	$25	$35
Family	$30	$50	$75

Working Spouse Contributions will no longer apply.

The following are effective January 1, 2011 continuing for the life of this agreement:

·         All deductibles and out of pocket maximums will be on an individual basis.

Annual Deductibles:

	Network/ONA	Non-Network
Ind	$350	$900
Family	$700	$1,800

Out-of-Pocket (OOP) Maximums, excludes annual deductibles:

	Network/ONA	Non-Network
Ind	$1,000	$3,000
Family	$3,000	$6,000

Co-Pays/Co-Insurance:

	Network/ONA	Non-Network
Office Visit - Preventative	$0/$0, deductible waived	No Benefit
Office Visit - Sickness/Illness	$0/10% after deductible	$0/40% after deductible
Tests - Preventative	$0/0%, deductible waived	No Benefit
Tests - Sickness/Illness	$0/10% after deductible	$0/40% after deductible
Urgent Care	$0/10% after deductible	$0/40% after deductible
Hospital In-patient/Out-patient	$0/10% after deductible	$0/40% after deductible
Mental Health/Substance Abuse	$0/10% after deductible	$0/40% after deductible
Emergency Room	$0/10% after deductible	$0/10% after deductible

Prescription Drug Plan

·         There are no deductibles in the Prescription Drug Plan for the years 2011, 2012, 2013

·         Specialty pharmacy program.

·         Mandatory use of generic drugs - If generic exists and brand selected, then you pay generic co-pay plus the difference between brand and generic.  Documentation by doctor can confirm that you must use brand.

·         Maintenance prescriptions are required to be filled through the mail order after second refill at a retail location, or picked up directly at a CVS retail pharmacy.

·         The appeals process will stay in place to pay the lower co-pay rate when a non-formulary drug is medically necessary.

·         An arrangement has been made between the Company and CVS that will permit pick up at the CVS retail locations of 90 day prescriptions for maintenance drugs while receiving the mail-order rate.  This applies even after the prescription has been filled the allowable number of times at a retail pharmacy.  This benefit will be available as soon as administratively possible.

Annual Drug Out-of-Pocket Maximums:

	2011	2012	2013
Ind	$900	$900	$1,200
Family	$1,800	$1,800	$2,400

Co-pays for In-Network Retail Prescription Drugs (30-day supply)

	2011	2012	2013
Generic	$10	$10	$10
Formulary	$20	$20	$35
Non-formulary	$40	$40	$60

Co-pays for In-Network Mail Order Prescription Drugs (90-day supply)

	2011	2012	2013
Generic	$20	$20	$20
Formulary	$40	$40	$70
Non-formulary	$80	$80	$120

Active Employees who retire during Agreement

·         Active Employees who retire during the life of this agreement will continue to receive Active Employee Healthcare Benefits for the life of this agreement.

No changes were made to the following Benefit Plans:

·         Employee Assistance Plan (EAP)

·         Disability Plans, both Short Term (STD) and Long Term (LTD)

·         Leaves of Absences

·         Dental

·         Vision

·         CarePlus

·         Adoption

PENSION PLAN

Pension Band Increases:

·         June 1, 2010 - 2%

·         June 1, 2011 - 2%

·         June 1, 2012 - 2%

·         June 1, 2013 - 2%

Commission employees Pension formula changes:

·         Effective with terminations of employment on or after January 1, 2010, for commissioned employees, the employee's average monthly Pension Compensation will be based on the highest three of the last five completed calendar years instead of the last 36 months.

Phased schedule of transition to Pension Protection Act (PPA) becomes effective on January 1, 2012.

·         January 1, 2012 - 25% PPA - 75% GATT

·         January 1, 2013 - 50% PPA - 50% GATT

·         January 1, 2014 - 75% PPA - 25% GATT

·         January 1, 2015 - 100% PPA - 0% GATT

Lump Sum Distribution Options

·         The lump sum interest rate will use the average GATT rate from November of the prior year, beginning on January 1, 2010.

·         The same rate will apply for the entire calendar year.

·         From January 1, 2012 until March 31, 2012, the Company will figure the pension using the GATT rate for anyone retiring during this three month period only in 2012.

JOB SECURITY

·         Renewed letter from Company regarding contracting out work

·         Introduced National Transfer Plan.  The National Transfer Plan combines the Intersubsidiary Movement Form, the Surplus Employee Interchange Program, and replaces the Enhanced Opportunity/Early Retirement Benefit.

·         Letter from Company committing to discuss and consider alternatives to enhance voluntary departures during surplus situations.

WORKING CONDITIONS

·         Extended Flex Time provisions, deleting restrictions when taking time off

·         Extended Four Day Work Week provisions

·         Extended MOU concerning arbitration cases involved in the CWA Internal Appeal Process

·         Company to promote internally the CWA/NETT Academy Training program

·         Renewed Partners in Progress which includes:

-   Work & Family Committee addressing issues relating to Monitoring, Employment Security, Ergonomics, Office of the Future and Reviewing of Publishing Titles

-   Training Advisory Board to discuss solutions to career and education plans and training/retraining

-   Quality and participative Management/Employee Involvement to reaffirm and renew commitment to the process of Quality & Participative Management/Employee Involvement

-   Empowered Work Teams to reaffirm and renew commitment of the availability of Empowered Work Teams (EWTs)