Medco TA Ratified

FOR IMMEDIATE RELEASE

May 24, 2006

Contact: Lynne Baker, USW, (615) 831-6782, (cell) 615/828-6169

Las Vegas Medco workers ratify new three-year contract
Employees return to work after 49-day illegal lockout

Las Vegas—Local 675 members of the United Steelworkers union (USW) overwhelmingly ratified a new three-year contract with Medco Health Solutions, Inc. (NYSE:MHS) late Tuesday afternoon and are returning to their jobs after being illegally locked out for 49 days.

The ratification comes after approximately 580 pharmacy technicians and support staff were illegally locked out by Medco on April 5, 2006. Workers had refused to give up their right to bargain over benefits.

The new contract provides for a medical and dental plan that cannot be altered or changed during the life of the contract. Other benefits like life insurance, accidental dismemberment/disability insurance and the 401(k) plan are restored. Any changes in these other benefits have to be negotiated between the union and management.

Two top-level committees were created under the agreement. One will be co-chaired by USW International Vice President Fred Redmond and a representative of Medco. The other is an executive committee composed of USW International President Leo W. Gerard and Medco CEO David B. Snow, Jr. Both committees will address such topics as attracting business for Medco, legislation affecting the pharmaceutical industry, productivity, quality of work life, and neutrality and card check recognition at all Medco facilities.

The three-year contract runs from Sept. 1, 2005 through Sept. 1, 2008. Workers will receive a lump sum of $2,100 upon ratification, an immediate wage increase of 3.5 percent, another 3.5 percent wage increase this September, and a final 3.5% in September 2007. In 2007 and 2008, workers also will get $850 lump sum bonuses.

“Medco’s illegal lockout of our members brought the labor movement together and that pressure helped us reach an agreement,” said USW International Vice President Fred Redmond. “We urge Medco to come to a fair agreement with the Columbus, Ohio, and Tampa, Fla., facilities.”

Negotiations have begun for approximately 800 members at Medco’s mail-order pharmacy in Columbus and for approximately 300 call center workers in Tampa. The Tampa contract expired on May 20, and the union and management have agreed to a 45-day contract extension. The Columbus contract will expire May 31.

The USW represents over 5,100 workers at Medco facilities in Las Vegas, Nev., Tampa, Fla., Willingboro, N.J., Columbus, Ohio, North Versailles, Pa., Fort Worth and Irving, Texas, and Liberty Lake (Spokane) Washington. For more information on Medco, visit the USW website: www.usw.org/rx

TA in Medco Lockout

FOR IMMEDIATE RELEASE
May 19, 2006
Contact: Lynne Baker, USW communications, 615/831-6782, (cell) 615/828-6169

Tentative agreement reached between Steelworkers and Medco Health Solutions, Inc. in Las Vegas

Illegal lockout to end if members ratify new contract

Las Vegas—Medco Health Solutions, Inc. (NYSE:MHS) has reached a tentative agreement with the United Steelworkers International (USW) union and its Local 675 that covers its members in Las Vegas. The local negotiating committee will unanimously recommend the agreement to the membership.

Details of the tentative agreement will be announced only after Local 675 members receive a contract summary and participate in a contract ratification meeting on Tuesday, May 23.

“Public pressure against the company for its illegal lockout affected our negotiations,” said Pia Tillis, USW unit chair for the Las Vegas Medco facility. “Unions across the country denounced Medco and threatened to change prescription providers in a deluge of letters, phone calls and emails.”

If Medco had not agreed to end the illegal lockout, it would have placed at risk over 25 percent of its total business. Over 6 million union members and their families have coverage under Medco’s prescription drug plans.

“This illegal lockout of our members brought a lot of pressure from the labor community and our allies,” Tillis said. “After a six-week lockout, we’ve achieved the best Medco contract in our union’s history. This agreement is a radical improvement over the so-called ‘last, best and final offer’ the company presented to us just prior to the illegal lockout.”

Two other USW-represented Medco sites have contracts that expire this month. A contract for approximately 300 Medco call center workers in Tampa, Fla., will expire at midnight on May 20. Approximately 800 members at Medco’s mail-order pharmacy in Columbus, Ohio, have a contract that expires at midnight on May 31.

“We don’t want to see another unnecessary illegal lockout by Medco at these facilities,” said Fred Redmond, USW international vice president. “The company needs to negotiate a fair contract at each of these locations.”

“We want Medco to know that we will stand in solidarity with our brothers and sisters in Tampa and Columbus,” Tillis said. “Their support helped us get a fair and equitable contract.”

The illegally locked-out Medco workers in Las Vegas will be returned to their jobs if the membership ratifies the agreement.

The USW represents over 5,100 workers at Medco facilities in Las Vegas, Nev., Tampa, Fla., Willingboro, N.J., Columbus, Ohio, North Versailles, Pa., Fort Worth & Irving, Texas and Liberty Lake (Spokane), Wash. For more information on Medco, visit the USW website: www.usw.org/rx           

Your Prescriptions Being Filled by Scabs
The Medco Lockout

Over the last several weeks I have received several emails concerning contract negotiations and a subsequent lockout of over 500 pharmacy workers represented by the USW (United Steel workers) and employed by Medco (that would be the same Medco used by American for its mail order drug plan). I was a little confused, I didn't quite understand how the USW came to have anything to do with pharmacy workers. As it turns out the Medco workers were originally represented by the Oil, Chemical and Atomic Workers, then the Paper Workers Union, then PACE, and finally the United Steel Workers, these changes all due to a series of mergers.

Since I use Medco I was and am concerned over the effects of a lockout at Medco on at least three levels. I use Medco and remain concerned over the availability of prescription drugs used in my household. I had heard that Medco had hired replacement workers, so that makes me concerned that my prescriptions may not be properly filled. And, finally, as a Union member, I am outraged that my employer, American airlines, does business with a company that would engage in unfair labor practices and cause a lockout to fellow Union brothers and sisters. What, then, could I do?

I contacted the USW and explained my dilemma and asked for some background information on the lockout. The Medco contact had expired on September 1 st , 2005. Prior to that date Medco had implemented unilateral minor changes to the company Health Care Plan Document, citing language in the Health Care Plan Document that allowed them to make unilateral changes to the plan. During negotiations Medco informed the Union that the Health Care Plan Document was not negotiable and that Medco had no intention of negotiating any provisions of the plan and would maintain sole jurisdiction over the scope, language and even the existence of the Health Care Plan Document. The Union, acting in good faith, found another health care provider that could provide similar coverage and save Medco $1,000,000.00. Medco refused to consider the alternate plan because it did not use Medco as the provider of prescription drugs. Pay attention here, Medco sought to force the Union to use Medco as the prescription drug provider, talk about the fox guarding the hen house. Talk about profiteering on the backs of your own employees.

At this point Medco ended negotiations and locked out the pharmacy workers. The Union, of course, has filed complaints with the NLRB alleging violation of workers rights and a change of benefits without bargaining to an impasse. These matters are now before an administrative law judge for resolution. The USW feel that they have a good case and will ultimately prevail.

In the meanwhile I find myself somewhat between a rock and a hard place. I do not want to continue to enrich Medco by purchasing my prescription drugs there while Medco has locked out fellow Union workers, yet Medco is the provider chosen by American Airlines. The USW representative I spoke to said many of their own members are in a similar predicament; forced to buy drugs from the very company that is locking out its own membership!!!

What can you and I do? Send an email to Gerard Arpey (Gerard.Arpey@aa.com). Perhaps Mr. Arpey can let Medco know just how well the JTL, CTL, PUP and AIP initiatives are working for American (sarcasm intended) and that if Medco wants to end its dispute with the USW all it need do is follow Americans lead in how to deal with Unions. Pull together, win together.

Seriously, the USW is urging concerned Union members to contact their own state's pharmacy board (Texas State Pharmacy Board: http://www.tsbp.state.tx.us ) and let them know that you are concerned that pharmaceutical medicines may be being mishandled by temporary replacement workers hired by Medco in Las Vegas, Nevada. The USW is also urging you to contact Medco CEO David Snow at Medco Health Solutions, Inc., 100 Parsons Pond Drive, Franklin Lakes, NJ 07417. Phone: 201-269-5920, Fax: 201-269-1500. Emails may also be sent to Mr. Snow at david_snow@medco.com .

Sincerely,
Gary Moffitt
Local 567 Legislative Director

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