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AT&T Releases Details of Tentative Agreements in AT&T Midwest, AT&T Corp Core Wireline Contract Negotiations

Dallas, Texas, July 23, 2012

AT&T* today provided details of tentative agreements it reached on July 21 with the Communications Workers of America in core wireline contract negotiations for the AT&T Midwest region and AT&T Corp (CWA Communications and Technologies unit).

The Midwest contract covers more than 13,000 employees in Illinois, Indiana, Ohio, Michigan, and Wisconsin. The AT&T Corp contract covers about 5,700 employees located throughout the country. 

Both labor contracts will be submitted to the CWA’s membership for a ratification vote in coming days. The prior contracts negotiated in 2009 expired on April 7 of this year and employees have worked under the terms of these expired contracts while negotiations continued. 

Among provisions of the tentative agreements:

  • General wage increases in each year of the contract – 2.25 percent the first year, 2.75 percent the second year, and 3 percent the third year. 
  • A 1 percent pension band increase in each year of the contract to the banded pension plan enjoyed by most current employees. New hires will continue to receive the Bargained Cash Balance 2 Pension Plan, with a one-time, 1 percent pay credit increase and a generous 80 percent match in the AT&T Retirement Savings 401(k) Plan. 
  • Continues to provide a guaranteed job offer provision that promises qualified surplused employees a guaranteed job opportunity with AT&T – an employment security provision that is virtually unheard of in most of corporate America today.
  • Maintains one of the most robust health care plans in the nation, continuing to cover 100 percent of network preventive care, maintaining previously company funded health reimbursement accounts, with increases to employee costs. For example, employees with individual coverage will pay monthly contributions of $38 in the first year of the contract, $58 the second year and $79 the third year of the contract. Employees with family coverage will pay monthly contributions of $81, $121, and $163 over the three years of the agreement.  New hires will pay higher contributions during their first two years of service, then will go into the same plan as current employees.  Deductibles for network care will be $500 for individual coverage and $1,000 for family coverage in each year of the contract.

More details of the agreements will be posted in coming days at http://bargaining.att.com/corewireline.

AT&T continues to bargain with the CWA in the East and West regions, where contracts also expired April 7 and employees continue to work under the terms of the old contracts; and in the Southeast, where the current contract expires on Aug. 4.

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