Standard & Poor’s negotiators attempted a power play in the second round of talks Thursday, November 16.

They told Guild negotiators they wanted to improve the 401-K plan and the improvements would come independently from an agreement on the rest of the contract. But the improvements wouldn’t come without a price tag. They would cost Guild members our weekly paydays. Under the company proposal, the 401-K improvements would be in exchange for our members being paid twice a month.

The company spokesman, Attorney Stephen J. Macri, of Putney, Twombly, Hall & Hirson, told Guild negotiators we’d have to snatch the deal right away – there would be no time to think about it. It was good for Thursday and Thursday only, he said.

We declined the offer.

The company’s proposal would have done away with the year’s waiting period for participation in the 401-K and new employees could enroll immediately and begin to participate the following month.

Participants would be vested immediately instead of being partially vested for the first three years.

The proposal would allow for a 15% maximum contribution as opposed to the current 10%. Contributions would continue to be capped at $10,500 a year, however.

Macri said adjustments to the 401-K can be made only once a year and now is the time. Since (because of the company’s schedule) negotiations will not be held again until December 4, the Guild had until the end of the day Thursday if it wanted its members to enjoy the enhanced 401-K benefits, which would become effective 01-01-01.

(If the Guild turns around and accepts the offer later in negotiations, Marci related, the earliest the changes in the 401-K plan could go into effect would be January 1, 2002. S&P will be making the changes for non-Guild employees and those changes will go into effect this January, Macri said.)

Guild spokesman Bob Townsend told company officials the absurd deadline made it literally impossible for us to agree to it. Such significant changes in the existing contract would require approval by the membership.

When Townsend presented that hurdle, company negotiators altered the deadline and said we could have until Wednesday, November 22, to bite at the proposal. We told them we weren’t playing their game.

For the second time, Guild negotiators walked into the meeting with proposals in their hip pockets and for the second time the proposals stayed right there because the company didn’t have proposals to exchange.

Townsend asked company negotiators if they would have proposals ready at the next bargaining session.

Macri said he didn’t anticipate having proposals as such. Any proposals the company would have, he said, would be economic in nature and would be in response to Guild proposals.

"Well, you’re going to have a proposal to pay our people twice a month, aren’t you?" Townsend asked.

Macri agreed.

"And you’re going to have a proposal to do away with Blue Cross, aren’t you?"

(Earlier in the meeting, Vice President of Human Resources Bob Temme said management had a "real concern" about Blue Cross because subscriptions at S&P had dwindled to 86 people and he was afraid the insurer might cancel the plan due to lack of participation. "We don’t want to get into jeopardy where we bargain a benefit we can’t provide anymore," Temme said.)

Macri agreed S&P will have a proposal concerning medical coverage.

"Then why don’t you put those two proposals in writing and have them ready for the next meeting?" Townsend suggested.

Macri said he would.

When Townsend went back to the 401-K and asked what S&P would be taking away from non-union personnel in exchange for the improvements, company negotiators went ballistic. Non-union employees already get paid twice monthly, Macri reminded the Guild negotiator.

When Townsend said he still wanted to know what was being taken away from non-union employees in return for the 401-K changes, Macri told Townsend he was comparing apples to oranges. The company doesn’t negotiate with non-bargaining unit employees, he said, no concessions are necessary.

The Guild will press for the 401-K improvements in negotiations and, despite what Macri said, we’ll press for them to become effective when an agreement is reached.

In addition to Townsend, the Guild is represented at the table by Unit Chairperson Ed Fannon, Brian McGuire of Facilities and Services Management, Marilyn Bissell of Cash Systems, Peter Burke of Ratings Information Services, Leo Larkin of the Analytical Department, John Matis of Data Operations, Dorothy Madison of Subscriber Services – Circulation Fulfillment and Caheim Murray of Mail Services.

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