ATamp;;T Releases Details of Tentative Agreements in ATamp;;T Midwest, ATamp;;T Corp Core Wireline Contrac

^{Published on 2012-07-23 09:50:20 - Market Wire}
 

AT&T Releases Details of Tentative Agreements in AT&T Midwest, AT&T Corp Core Wireline... -- DALLAS, July 23, 2012 /PRNewswire/ --

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DALLAS, July 23, 2012 /PRNewswire/ -- 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.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About AT&T
AT&T Inc. (NYSE: [ T ]) is a premier communications holding company and [ one of the most honored companies in the world ]. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile broadband and emerging 4G capabilities, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse^® and AT&T |DIRECTV brands. The company's suite of IP-based business communications services is one of the most advanced in the world.

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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

SOURCE AT&T Inc.

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