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AT&T, Union Continue Talks After Contracts Expired

Pacts Covering Almost 100,000 Workers Ended April 4

Todd Spangler -- Multichannel News, 4/6/2009 3:29:33 PM

AT&T's contracts covering nearly 100,000 employees represented by the Communications Workers of America expired at midnight April 4, and the union said its members will continue to report to work while negotiations with the telco continued through Monday afternoon.

However, according to the CWA, "workers are keeping their option to strike open." Last month 88% of the union's members who are AT&T employees voted to authorize a strike if negotiations "fail to produce quality contracts."

For now the terms of the previous contracts will remain in effect with the exception of arbitration for grievances. The CWA said those contracts will not be extended.

In statements Sunday concerning the situation, the Dallas-based telecommunications company said, "AT&T stands ready to negotiate at any time in a continuing effort to reach an agreement."

According to a report in The Wall Street Journal, under an AT&T proposal Friday, the union's workers -- who currently don't pay health-care premiums -- would be required to pay monthly premiums and 10% of health-care costs until a deductible is reached.

The CWA claimed that the talks with the telco have produced little progress in the areas of health care, retirement security and employment security.

"The CWA bargaining teams are very frustrated by AT&T's slow pace in negotiations. Instead of working toward quality settlements that will benefit workers and the company, AT&T negotiators chose to drag out negotiations without a plan for settlement," CWA executive vice president Annie Hill said in a statement.

AT&T has claimed benefits such as health-care coverage and penions must be revised, pointing to the woes of the auto industry. The CWA has countered that AT&T, unlike car makers, is profitable and anticipates revenue growth through 2009.

AT&T and CWA did reach an agreement last week on a collective bargaining agreement for about 21,000 wireless employees covered by the "Mobility Orange" contract.

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