Monday, April 6, 2009

AT&T, Labor Talks Continue As Strike Threat Looms

AT&T (NYSE: T) continued to negotiate with union members whose contracts expired over the weekend as the company focused on several issues, including how to protect the job security.

The two sides are also trying to hammer out agreements related to the status of worker positions being lost because of the shift of subscribers from landlines to wireless.

Although AT&T -- the largest telecom company in the United States -- has nearly 300,000 employees, just 15,000 workers in one unit represented by the Communications Workers of America are at the center of attention in the negotiations. The workers have agreed to work on past the expiration of the contract. The union members already have approved a strike vote.
"AT&T stands ready to negotiate at any time in a continuing effort to reach an agreement," AT&T said in a statement.

In a reply, the CWA said: "This company takes care of executives and investors. It needs to set the right priorities and maintain quality jobs and quality benefits for workers."

Many of the issues at stake in the negotiations are similar to bones of contention at other telecommunications companies and even in other industries. For instance, the two sides have been trying to resolve issues over health care payments, which have been rising sharply in recent years.

Another major issue involves the fate of workers who are faced with losing their jobs as consumers increasingly drop landlines in favor of wireless phone service. According to media reports, the two sides have been exploring ways by which workers dropped from landline service rolls will be able to pick up employment in AT&T's wireless operation or in its growing cable programming unit. Earlier, AT&T said it plans to cut 12,000 jobs this year.


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source: informationweek.com