Troubled telecommunications gear maker Lucent Technologies has reached a tentative contract agreement with a union that represents 5,400 of its workers. þþþThe 20-month contract calls for a 2 percent pay raise on June 1 and another 2 percent increase on May 30, 2004. The deal also calls for increases in the amount workers contribute for health care. þþþTalks between Lucent and the Communications Workers of America were held in advance of the May 31 expiration date of the current contract. The company asked for the early negotiations so it could factor labor costs into its turnaround efforts. þþþLucent posted a 2002 net loss of $11.8 billion as it continued to be hurt by the prolonged slump in the telecommunications industry. There have been massive layoffs, voluntary buyouts and sales or spinoffs of some divisions at the company. Lucent has about 35,000 employees altogether. þþþUnion members are expected to vote on the deal by Feb. 7. The workers covered by the deal are mostly service providers, including installers and technicians. About 750 of the workers are based in New Jersey. þþþIf the contract is ratified it will go into effect March 1 and expire Oct. 31, 2004. þ
AP
