AT&T "Legacy T" Bargaining Report # 54

Right now, the Legacy T Union and the Company bargaining teams are not meeting.  The Company continues its demands for exorbitant cost shifting while refusing to address our real concerns for job security.

Stephenson's statement (see excerpts below) with AT&T's 2nd quarter results are clearly aimed at the bargaining:  "the economy, losses in the wireline business, and legacy benefit costs drove earnings per share down 14%."  He pretends to appreciate our "hard work," and talks about "good revenue growth in areas where we're leading and investing -- mobility, broadband and video, and IP data services… creating opportunities for employees…"   However, at the bargaining table his minions continue to try to cut us out of the very jobs he says are the only growing parts of the business.  They rejected our "emerging technologies" proposal which would have given us access to this work, continue to try to take away language that has reduced Contractors in the NTS title and refused our other job security proposals which would protect all our jobs. 

Until these issues are addressed, the Company cannot expect us to sacrifice to their health care cost issues.  This is what has stalled negotiations at several of the bargaining tables.

We will issue another report when we start meeting again. 

Second Quarter 2009 results            

Team,

The second quarter is now behind us, and while the iPhone 3GS launch has
been a great success, the economy, losses in the wireline business, and
legacy benefit costs drove earnings per share down 14%. Wireless
operating income was up nearly 3%, but that was offset by wireline
operating income, which was down 36%.

In spite of this difficult operating environment, you did a good job
winning customers, sustaining margins and managing capital, and we
generated good revenue growth in areas where we're leading and investing
- mobility, broadband and video, and IP data services.

We're best when we operate as one AT&T. We've made good progress in
planning and operating as a single, integrated company over the past two
years, but we have not achieved all that we're capable of - not even
close. …. And it's how we grow our business - creating opportunities for
employees and value for our customers and shareowners.

Thanks for all your hard work in the first half of this year. I'm
confident that you will maintain that focus and ensure that AT&T
continues to deliver industry-leading results for our shareowners and
our customers.

Randall