Date: Fri 22-May-1998

Publication: Bee

Author: CURT

Quick Words:

SNET-SBC-unions

Full Text:

SNET Union Asks For Job Guarantees After SBC Merger

By Denise Lavoie

Associated Press

STAMFORD -- As SNET held what could be its last annual shareholders meeting

May 13, Chairman Daniel Miglio touted the company's pending merger with SBC

Communications as a "strategic marriage" that will ensure continued growth.

But leaders of the Connecticut Union of Telephone Workers said they are

looking for a prenuptial agreement.

At the meeting, the union asked the company for a contract clause that will

provide job security to the nearly 7,000 workers it represents at Southern New

England Telecommunications Corp.

SBC has said it will maintain the current number of jobs in Connecticut for at

least two years after the merger is completed. But union leaders said they

want a guarantee that the quality of jobs will also remain the same.

A half dozen union leaders attended the annual meeting, saying they are

concerned that some high-paying jobs, including positions in operator services

and consumer marketing, will be sent out of state and replaced by lower-paying

jobs.

"We agree that the merger would be good overall, but we feel there are certain

guarantees we have to have ... we don't want to see everyone subject to being

moved into certain areas SBC will control," Eric Rask, executive vice

president of the union, said during a news conference just before the meeting.

Miglio told the union members and about 60 shareholders who attended the

meeting that although the merger will mean some job loss because of

consolidations, the deal is expected to create jobs in the long run.

"I'm convinced that our total employment will grow going forward," he said.

"There are no plans to move jobs out of state that I'm aware of."

Union leaders also said they are concerned that SBC's planned purchase of

Ameritech Corp. will mean job losses at SNET.

SBC announced Monday that it has agreed to buy Ameritech for $56.6 billion in

a deal that would create a communications powerhouse to compete with AT&T Corp

and WorldCom Inc.

Miglio said SBC's acquisition of Ameritech is not expected to have any effect

on its merger with SNET, which is expected to be completed by the end of the

year.

Karin Mayhew, SNET's senior vice president for organization development, said

management is willing to talk with the union about its demands. But she could

not say whether the company would agree to a clause ensuring the same types of

jobs remain in Connecticut after the merger.

"That's a subject for the bargaining table," she said.

Although Ms Mayhew said management does not anticipate any difficulty in

negotiating a new contract with the union by the August 8 deadline, union

officials said it may not be possible without agreement on a job security

clause.

If the company does not agree, "I think it would make it very difficult to

come up with a contract ratification vote," Mr Rask said.

He said the company is considering affiliating with the International

Brotherhood of Electrical Workers or the Communications Workers of America to

strengthen itself for contract negotiations. A vote is scheduled for June 26.

Union officials complained that the company has already secured the future for

its top managers, citing agreements that provide for about $14 million in

severance payments if nine top officers lose their jobs as a result of the

merger.

But Mr Miglio said the severance packages were "middle-of-the-road, standard

provisions" for executives during mergers and are considerably lower than

amounts paid in other recent consolidations.

SBC Communications, based in San Antonio, Texas, was formerly Southwestern

Bell. It bought San Francisco-based Pacific Telesis Group a year ago for $16.5

billion.

SNET, a 120-year-old independent phone company, is the main provider of local

phone service in Connecticut and controls about 30 percent of the

long-distance market in the state. SNET spokeswoman Beverly Levy said the

annual meeting was held in Stamford because the company sold a building it

usually uses in its home base of New Haven. Ms Levy said the company chose the

Italian Center because of its proximity to New York, where some of its

directors are based.