Alliance Update - April 2004

April 13, 2004

The Alliance and the CWA Staff Union have reached an agreement on how we will proceed with our Alliance Plan for the Future. Highlights follow:

• Between now and the end of July 2004 we will redesign our Field Operations (Associate Directors) work to make our staffing assignments and locations work better with the company and union stakeholders, while serving the needs of the participants.

• We will conduct a complete review of our training programs to re-design content, delivery and communications – again, to better serve the needs of the participants and stakeholders.

• We will do a complete review of all our distance learning programs to decide which programs to keep, which to drop, and what new programs we should have.

• We will review the various forms of quality evaluations we do, including as a priority financial/cost analysis, Business Unit initiatives, quality, staff evaluation, and surveys and studies. Our goal is to maximize the expenditure of our funds, to increase the quality of our services, and to assist staff in providing new and better services to our participants and stakeholders.

• We will continue to pursue new business initiatives, using our Alliance Business Opportunities Program.

To date and at least for the remainder of this year, we have agreed on the following specific provisions:

• All programmatic work of the Alliance will be under one Director

• We will carry a compliment of 12 Associate Directors, with 9 in Field Operations working with Alliance committees, and 3 working in Research/Resource Development.

• We will carry a compliment of 11 Associates in support of our Associate Directors, our national/distance learning programs and our back-office operations such as IT and Accounting. Final decisions on assignment of work will be done by April 30, 2004.

• We will eliminate the Field Operations Associate Director position in New England and assign that staff to New Jersey.

• We will eliminate one Field Operations Associate Director position in Atlanta and assign that staff to the Research/Resource position in Atlanta.

• There will be some re-balancing of remaining Field Operations work nationally, but all Field Operations Associate Directors will remain in their current locations.

• We will review how “Coordinators” are used and will review whether this work should be within the bargaining unit or remain as is. This work is to be completed by July 31, 2004.

• We will review our existing Registrar (On –line class registration) System to determine how extensively we should make it available to participants nationally.

• We will do a complete review of our communications systems and marketing strategies to identify those that are effective, and ways to improve upon what we have currently. This work will also be completed by July 31, 2004.

Other:

• We have increased our target participation level in Lucent to 50% of the active eligible workforce.

• We have increased our target participation level in AT&T to 55% of the active eligible workforce.

• We have assigned specific Associate Directors to work with the union and Lucent Operations Directors in 7 major geographic territories.

• We have assigned specific Associate Directors to work with the union and Avaya General Managers in 6 major geographic territories.

• We have assigned specific Associate Directors to work with the union and AT&T Business Units and Team Leaders in 11 major business units/center operations.

• We will hold one all-staff meeting each year to deal with Alliance-wide communications regarding programs and other issues important to all staff. We will also conduct periodic conference call meetings for the same purpose.

The company and union will meet after Lucent bargaining and again after AT&T bargaining to determine what additional changes, if any, are warranted.

Don Treinen
The Alliance