Retirees fight Windstream plan to cut benefits
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By JOSH FUNK / The Associated Press
OMAHA — Windstream Corp. wants a federal judge to affirm its authority to reduce retiree benefits even when the people affected retired from other phone companies that Windstream acquired over the years.
But the retirees argue that Little Rock, Ark.-based Windstream and the companies it acquired — Lincoln-based Aliant Communications and its predecessor Lincoln Telephone Company — promised to maintain retirement benefits unchanged. A U.S. District judge in Lincoln will hear arguments in the case on Dec. 15.
In court documents, Windstream argues that it has an absolute right to make any changes it wants to the retiree benefit plans. The retirees counter that they earned those benefits by working for the company at least 15 years.
Attorney David Domina, who represents the retirees, said the benefits should be considered vested and permanent.
An attorney for the company did not immediately respond to a message Wednesday and a Windstream spokesman declined to comment.
Earlier this year, Windstream told retirees that it planned to require them to start paying part of their health insurance costs and reduce other benefits. In court documents, Windstream said benefits for each of the more than 800 Nebraska retirees covered by the case cost three times more than other retirees.
Windstream estimates that retiree health care benefits represent a $227 million liability for the company, and two-thirds of that figure is associated with benefits for the Nebraska retirees.
Windstream provides voice lines and broadband Internet service in 16 states. The company operates in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina and Texas.
The publicly traded company was spun off from Alltel Corp. in 2006 and merged with Valor Communications Group Inc. of Irving, Texas.
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sorry wrote on December 3, 2008 11:41 pm:
whatever wrote on December 4, 2008 5:23 am:
Greg wrote on December 4, 2008 6:48 am:
Don wrote on December 4, 2008 8:50 am:
My mother wrote on December 4, 2008 11:44 am:
What wrote on December 4, 2008 1:37 pm:
expense?? Non of these companies have to guarantee retirees health insurance. I pay my companies health insurance premium and they set their
prices the same as medicare and therefore, they end up paying NOTHING!!
But mine is better than a relative who's company he retired from here in Lincoln switched health care companies so it wouldn't cost his company
as much and boy is he paying huge dollars. I worked for my company 46
years, and most of those years we worked for peanuts and were told "well
part of your salary is for you present and future health care." Boy was
that a bunch of baloney! The Govt shouldn't give the big 3 a dime unless
employees and retirees both get their health insurance and salaries
reduced big time. Those unions destroyed the big 3, now they want all
us taxpayers to bail them out. I say no even if the country goes into
a depression. Been thru that once and there's a world full of people that
need to be taught a lesson on greed!! An out patient surgical procedure
normally paid 85% by medicare for the hospital, was only paid 67% because
the "average national charge for the procedure was WAY below what you
are charged here in Lincoln," medicare told me!!!! Medical costs are
high everywhere, but as normal, Lincoln and Nebraska will take you to
the cleaners big time, plus the service prices are so jacked up that no
wonder medicare is going broke. And who does it hurt, the little guy!! "