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AT&T Pact Improves Wages, Pensions, Job Security
In early negotiations, CWA and AT&T agreed this week to a tentative 25-month contract extension that boosts wages by 5.75 percent and pensions by 5 percent, and also improves job security for the 22,000 workers, CWA Communications and Technologies Vice President Ralph Maly reported. There are no contract retrogressions, he said.
The settlement, which will be presented shortly to CWA members for ratification, extends the current pact, set to expire this November 8, until December 10, 2005.
Pension bands will increase by 5 percent on September 1, 2003 for the defined benefit plan, and the cash balance pension plan will increase by 5 percent on January 1, 2004, with the interest credit set at 4.5 percent.
Wage rates will go up 1.5 percent this November, and in May and November of 2004, then by 1.25 percent in May of 2005.
Among job security improvements, AT&T agreed that layoffs should never result from subcontracting of work, regardless of whether subcontracting is inside or outside of "geographical commuting areas." The settlement also strengthens language on reporting data on subcontracting.
The parties also agreed to negotiate new union-represented job categories for supporting business clients' computer hardware.
Vice President Maly, who served as the union's chief negotiator, said that AT&T had requested the early talks, and it was agreed from the start that the company would not seek any contract concessions. "In these challenging times with the uncertainty of the economy, our bargaining team felt that negotiating this contract extension was in the best interest of protecting our members at AT&T," Maly said. "It was also important that we protected all contractual rights, including health care for active and retired workers, pensions and severance benefits," he added.
The settlement, which will be presented shortly to CWA members for ratification, extends the current pact, set to expire this November 8, until December 10, 2005.
Pension bands will increase by 5 percent on September 1, 2003 for the defined benefit plan, and the cash balance pension plan will increase by 5 percent on January 1, 2004, with the interest credit set at 4.5 percent.
Wage rates will go up 1.5 percent this November, and in May and November of 2004, then by 1.25 percent in May of 2005.
Among job security improvements, AT&T agreed that layoffs should never result from subcontracting of work, regardless of whether subcontracting is inside or outside of "geographical commuting areas." The settlement also strengthens language on reporting data on subcontracting.
The parties also agreed to negotiate new union-represented job categories for supporting business clients' computer hardware.
Vice President Maly, who served as the union's chief negotiator, said that AT&T had requested the early talks, and it was agreed from the start that the company would not seek any contract concessions. "In these challenging times with the uncertainty of the economy, our bargaining team felt that negotiating this contract extension was in the best interest of protecting our members at AT&T," Maly said. "It was also important that we protected all contractual rights, including health care for active and retired workers, pensions and severance benefits," he added.