Vestal Fulp Expresses Concerns To Members of Congress About Possible 

Impact of Lucent-Alcatel Merger On Lucent Retirees' Pension and Benefits

April 4, 2006

 

Dear Congressman Coble:

 

Re: Impact of Lucent Technologies and Alcatel Merger on Lucent Retirees

 

I’m certain you have heard of the approved merger between Lucent Technologies and Alcatel of France.  As a Lucent Retiree of 36 years with the Bell System Corporations (Western Electric, AT&T and Lucent Tech.), I am very concerned with the ripple effects that this merger will have on the earned benefits and pension of all Lucent Retirees..  We have no one to turn to except our elected representative.  Please, we urgently need you to initiate action to monitor very closely any behind the scenes manipulations that could further erode the benefits which we have already experienced and which we have rightfully earned. 

 

The basis for my concern is as follows:  Under the present CEO, Pat Russo, Lucent has eliminated or reduced many promised retiree benefits; such as, eliminated death benefits, eliminated dental plans, reduced medical benefits and prescription drug coverage. 

 

With this merger, I am very uncomfortable with a foreign company owning the pension fund (34 billion – worth more than twice Lucent’s market value) unless safeguards are in place to protect the pension and benefits of 235,000 retirees and their dependents.  Lucent retirees come from a rich heritage of companies like AT&T, Western Electric, Bell Labs and Teletype where retiree benefits were earned through decades of their labor.

 

Alcatel’s Statement on Business Practices states, “The Company’s activities and operations will be carried out in strict compliance with all applicable laws and the highest ethical standards”.  We retirees expect that this commitment applies to retirees’ pensions and benefits; however, words are not enough to ensure that this will happen or that it covers retirees.  We request and need the backing of the US Government leaders to hold Lucent and Alcatel accountable for the security of our benefits and pensions.  Our pension fund should not be allowed to go under the control of a foreign company.  After all, we earned our pension while working for an American Company in the United States.

 

I understand that under U. S. laws that apply to pension plans, retirees’ pensions cannot be taken away or reduced as the result of a merger.  As a US citizen, I expect Lucent and Alcatel to do what is legally required, but what is ethically and morally right; and further expect my elected representatives to support me on this.

 

My strength is supporting you with my vote, your strength is supporting your constituents in times of need, and we certainly need you on this.  I’m counting on the U. S. Government to go over this merger with a fine toothed comb, and not approve it unless the pension plan has fiduciaries that are independent of both Lucent and Alcatel.

 

Sincerely

 

 

Vestal G. Fulp

Greensboro, NC 27406