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Teamsters and Service Corp. International Negotiations Approach Deadline

 
    BEDFORD PARK, Ill., June 30 /PRNewswire-USNewswire/ -- Contract talks
 continued between Chicago-area funeral directors and Houston-based Service
 Corporation International (NYSE:   SCI) on Saturday, despite attempts to
 intimidate union negotiators.
     A negotiator for Teamster Local 727 left the meeting to apply lipstick
 when she discovered an armed Pinkerton detective with his ear to the door
 of the meeting room. The negotiating team was inside discussing strategy.
 SCI's negotiators admitted they had hired a Pinkerton team. Despite
 assurances that the guards would be sent away, they remained in the parking
 lot until shortly before company negotiators returned from a break.
     "In 26 years of negotiating contracts in the funeral industry, I have
 never had an armed guard eavesdrop and block the way of a union attorney,"
 said John T. Coli, Teamsters Local 727 Secretary-Treasurer.
     The Teamsters immediately filed a complaint with the National Labor
 Relations Board.
     On June 28, SCI hired a security firm and posted guards outside of its
 funeral homes, which has raised concerns among the Teamsters that the
 company plans to lock out employees. The contract expires Saturday at
 midnight but SCI has offered to extend it for one day.
     After nearly a month of negotiations, SCI, which operates under the
 guise Dignity Memorial, unveiled its economic proposal Friday morning which
 included:
     * Elimination of Defined Retirement Benefits:  SCI proposed the
       elimination of contributions to the jointly administered and guaranteed
       Pension Plan, and has proposed a 401(k) plan only.  The current SCI-run
       plan pays a two percent match in SCI stock.  Its also proposal causes
       employees who have not yet vested will lose all retirement benefits, and
       for all other employees benefits will be frozen.
 
     * Health Insurance Premium Co-Shares:  SCI proposed increasing the premium
       co-shares from 0 to 15 percent.  This would mean an additional $93 out
       of employees' pockets.
 
     * No Cost of Living Wage Allowance (COLA) for Funeral Directors:  In place
       of a COLA, SCI proposed a $1,200 annual bonus that would not alter the
       director's base rate.  After figuring the cost of the health increases,
       this bonus would equal a raise of $7 a month or four cents and hour in
       the first year.  In next two years, the wages would regress.
     "With $1.75 billion in sales last and profits increasing by 44 percent
 in the last quarter, it's baffling that the largest funeral corporation in
 the world cannot conclude negotiations when local and independent homes can
 come to an agreement," said Coli. "The funeral business is a relationship
 business, and it's disturbing to see a company attack the very people whose
 community roots make this company so successful. It seems that they're
 trying to bring a Wal-Mart mentality to local funeral services."
     On June 28, Teamsters Local 727 settled a contract for more than 200
 funeral directors and drivers employed by independent and family owned
 businesses represented by the Funeral Directors Service Association on
 Thursday night. The FDSA settlement included wage increases, continuation
 of pension and health benefits and other contract improvements. SCI dropped
 out of the SCI this year after being a member since 1968.
     Despite repeated requests to get any financial information, the company
 refused to provide the union with any data. Negotiations are scheduled to
 run through Sunday.
     "Instead of wasting money on security guards and expensive lawyers, SCI
 should devote its considerable resources to more productive purposes," Coli
 said.
     If the Teamster-represented funeral directors and drivers are locked
 out, the union has prepared an alternative list of funeral providers as an
 alternative for people in need of funeral services. While FDSA homes will
 be on the list, the union is asking that people not patronize
 Alderwoods-owned homes, because SCI is its parent company. This list and
 updates can be obtained by contacting the Funeral Negotiations Hotline at
 773-685-3301.
     Teamsters Local 727 represents more than 5,000 workers in the funeral
 and parking industry. It is affiliated with the International Brotherhood
 of Teamsters, which has more than 1.4 million members.
 
 

SOURCE Teamsters Local 727
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