SBC, union think strike will be avoided.

By: EDMOND JACOBY - Staff Writer | Friday, May 7, 2004 3:18 PM PDT ∞

NORTH COUNTY ---- Despite the approach of a walkout deadline set by the Communications Workers of America for midnight tonight, it appears unlikely that there will be a work stoppage at telecommunications giant SBC.

The latest round of talks in Washington, D.C., currently in its fourth day, is making enough progress to warrant at least a wait-and-see attitude, both CWA and SBC spokesmen indicated Thursday.

The most difficult issue to resolve in the talks appears to be how much employees will have to pay for health care, the same core issue that led to the 141-day Southern California grocery clerks strike that stretched from October to March.

"Basically, we're kicking it up a couple of notches," said John Arnold, spokesman for the Federal Mediation and Conciliation service. The principal negotiations are taking place at FMCS headquarters in the nation's capital under the auspices of the agency's director, Peter Hurtgen, who also was the mediator of the grocery workers strike.

"This (contract) is our top priority right now," Arnold said.

"They've been putting in long days, but the director is not ruling out an around-the-clock session; we're going to do whatever it takes to avert work stoppages," he said.

CWA members remained on the job after their contract expired April 1 under a temporary agreement that required a 30-day notice of intent to end a no-strike pact. That notice was given by CWA on April 7 after its members voted to authorize a strike.

"Both sides want to reach an agreement, but we have a way to go," said Candace Johnson, a spokeswoman for CWA in Washington.

"I don't know where we'll be in the negotiations as of the midnight deadline," she said. "If we're making progress, we'll keep talking."

Many of the issues in the talks will be familiar to anyone who followed the grocery strike talks. High on the CWA priority list is the cost of employee health care, a retiree health-care program, job retention and access to new jobs as the company expands its operations into uncharted areas, Johnson said.

"Last Friday, we reached a breakthrough on retiree health care; we did work out an agreement with SBC on that, and we hope we can work out agreements on these other issues as well," Johnson said.

Walt Sharp, a spokesman for SBC, said from Washington that the company had put a proposal for health care on the table featuring a 12 percent co-pay and no employee contribution to premiums, which he said the union rejected.

"We think that's a very fair offer," he said.

"And in the area of employee security (job retention), we are guaranteeing a job offer in the state in which an employee works" if his current job is discontinued, he said. "Not many American companies are willing to make that kind of an offer."

"We remain very hopeful that we will reach an agreement without a work stoppage," he said.

While conceding that SBC has outsourced some jobs ---- "We need to achieve certain price points to remain competitive" ---- he said the company is willing to discuss representation of new jobs with the union.

"The situation is just kind of 'let's keep our fingers crossed and wait and see,' " FMCS's Arnold said.

"These guys need to understand that a lot is riding on their reaching an agreement," he said.

About 39,400 CWA members in California work for SBC. Union representatives were unable to estimate how many work in San Diego County. Three of the union's locals represent workers in San Diego County: Local 9509 in San Diego, Local 9400 in San Diego and Riverside Counties, and Local 9511 in Escondido and Oceanside.

SBC was created in the late 1990s by combining several Southwestern Bell operating companies, including Pacific Bell, under a single national brand identity. It provides local and long-distance service and broadband Internet access in 13 states from the Southwest to the Northeast.

Contact staff writer Edmond Jacoby at (760) 739-6675 or ejacoby@nctimes.com.