Windstream retirees protest sky-high health insurance premiums (2:41 p.m.) [Carlsbad Current-Argus, N.M.]

Aug. 30--CARLSBAD -- Tibursio "Butch" Villegas couldn't believe what he was reading in the letter from the company where he worked for 31 years. His retiree health insurance premium as of July 1 increases from $126 a month, for himself and his wife, to $1,189 a month.

Villegas, who retired from Windstream Communications in 2007, said he was in shock. At age 62, he still has three years before he becomes eligible for health coverage through Medicare.

"My health insurance premium takes almost my whole retirement check," Villegas said.

Frankie Funk retired from Windstream in 2006 after 44 years service. Like Villegas, he too, received a letter in December that his retiree health insurance premium would increase from $80 a month to $300 a month for his wife and himself. Although he is eligible to draw on Medicare, Funk said he feels more than betrayed. He believes he and fellow retirees have been lied to and discarded.

He said some retirees will probably lose their retiree health insurance because of the restructuring.

On Monday, Frankie Funk, president of Communication Workers of American Local 6171, Villegas and Funk's brother, Jimmy, union president for New Mexico and a portion of Texas, picketed a Windstream facility on South Main Street.

Jimmy Funk, who is also retired from Windstream, said he is fortunate that the restructuring has not impacted his health coverage. But as union president, he feels obligated to stand on the picket line with the

Windstream retirees.

"The company initially provided telephone service to Carlsbad under the name of GTE, which was sold to Verizon. After two months, Verizon sold to Valor and Valor was sold to Tennessee-based Windstream Communications," Jimmy Funk explained. "I'm considered a Verizon retiree."

Jimmy Funk, who retired in 1999, said the health insurance benefits and premiums some 3,000 Windstream retirees held were negotiated benefits that Windstream and its predecessor companies promised to retirees.

"The last contract was negotiated in 2008, in which the union was involved," Jimmy Funk explained. "That contract was due to be renegotiated in 2011. Windstream did not negotiate the July 1 increase. They just sent out letters to the retirees. They had about 90 days notice that it was coming."

Frankie Funk said when he was about to retire after 44 years with the company, he was assured his retiree health benefits would be intact. Had he known what was going to occur, he would have not taken early retirement.

"We were assured that if we worked past 30 years, the company would pay 90 percent of the health insurance premium," his brother said. "For now, about 140 retirees are protected from this large health insurance premium increase. But no one knows for how long."

"We are picketing today to let everyone know what this company has done to its retirees. We want the 90 percent paid coverage as promised," Frankie Funk added.

Jimmy Funk said to add insult to injury; Windstream has taken legal action against the retirees who objected to the cutbacks.

"They answered a survey that Windstream sent out to get their opinions about whether the company has the right to change or terminate benefits," he said. "Windstream not only wants the court to okay its decision, it also has asked the court to require the retiree defendants to pay its court costs."

David Avery, Windstream director for corporate communications, said retirees were notified in December of the impending changes to their retiree health benefits, giving them time to make decisions regarding their health insurance.

"We appreciate all the work and effort by retirees to build a solid foundation for our company," he said in a telephone interview. "Our business operates in a very different market place today. We have to make difficult decisions each year regarding employee and retiree benefits due to revenue pressure from the declining residential voice business and spiraling health care costs.

"We recently announced changes to retiree benefits and are asking retirees to pay more of their health care costs. Our company has been reluctant to make changes to retiree benefits, but these changes are necessary in order to remain a competitive company."

On the issue of the class action lawsuit, Avery said, "In light of retirees' objections to the benefit changes and the need for legal certainty, the lawsuit seeks guidance as to whether the changes are permitted under plan documents and the law. Retirees have the option to participate in the proceedings or not."

Jimmy Funk said in addition to picketing Windstream's Carlsbad facility, picket lines have been set up in front of company facilities in Hobbs, Ruidoso and Espanola

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