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6 Things AT&T Shareholders Should Know About the Company's Operations

Despite its strong performance, AT&T long-term growth and market success may be at risk, not only from intense competition but also from the company’s decisions that undermine quality customer service and core capabilities. More than 38,000 AT&T wireless and wireline workers are negotiating with AT&T for fair contracts that invest in the company’s long-term strength and deliver on the basic promises that customers expect and pay good money for.
 

  1. While making over $1 billion in profits each month, AT&T has eliminated more than 12,000 US call center jobs and offshored thousands of other call center jobs to Mexico, the Philippines, India, the Dominican Republic and other countries. As AT&T workers call on the company to end its pervasive offshoring, U.S. Senators are taking increased action industry-wide with new legislation to stop companies from offshoring call center jobs.
     
  2. Today, more than 60% of AT&T’s branded retail stores are actually third-party dealers, known as “authorized retailers.” Customers regularly complain of deceptive sales practices, and to date, AT&T has failed to hold dealers accountable to quality customer service. AT&T workers are calling on corporate executives and shareholders to reverse this damaging trend before the impact on the business and their jobs becomes severe.
     
  3. AT&T is failing to provide high-speed broadband to communities across the country, particularly in California. A new report from UC Berkeley’s Haas Institute for a Fair and Inclusive Society revealed 4 million California homes lack access to AT&T’s high-speed broadband. Mayors and other elected officials from California and Nevada have “slam[med] AT&T for slow internet, long phone outages.” Recent reports have found similar problems in Cleveland’s poorest neighborhoods
     
  4. In just the last couple months, over 12,000 callers couldn’t reach 911 due to AT&T outrages across the country. Over the last year, severe and regular phone outages across rural California prompted the CPUC to require phone companies to provide more real-time reporting on outages – changes pushed for by AT&T workers for years. Federal lawmakers are demanding accountability.
     
  5. More than 38,000 AT&T wireless, wireline and DirecTV workers are more frustrated than ever before and ready to do whatever it takes to win fair contracts. Wireless workers nationwide have voted to authorize a strike by a 93% margin, and wireline workers in California and Nevada voted with more than 95% support. In March, 17,000 workers on the West Coast walked off the job in a one-day strike. Following the news, AT&T’s share price fell by 1 percent. Last year, Verizon workers were on strike for 49 days, finally gaining a strong contract that created and protected good jobs. During the strike, Verizon’s approval ratings were at a three-year low while analysts and media regularly remarked on the reputational damage facing Verizon.
     
  6. CWA members will vote in favor of shareholder proposals to improve corporate governance and accountability. There are several shareholder proposals on the ballot to improve AT&T’s corporate governance, including proposals for release of information on lobbying and political spending and to allow minority shareholders to nominate directors. CWA members will also vote against a $28.4 million compensation package for Randall Stephenson, which they view as excessive, particularly while there is widespread instability in the company’s workforce.