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AT&T Pushes Job Security - For Executives
Pressing for an 18-month contract extension with CWA, AT&T refused to discuss workers' concerns about job security. But AT&T's top executives and board of directors who plan to jump ship to the merged AT&T Broadband/Comcast Communications are giving themselves job security, at least through 2005, said Ralph Maly, CWA vice president for communications and technologies.
In a very public bid to gain extension of the contract that expires May 11, AT&T tried to paint its offer as giving workers "greater stability in wages and benefits" and improved pension and severance payments.
The company's press release left out the real story, Maly charged, noting that AT&T said nothing about its refusal to discuss jobs and opportunity for workers to move into new job areas in the company.
"AT&T's proposal for termination benefits is nothing but a raid on our members' pension fund, enabling the company to push downsizing costs onto workers. Our members would be financing their own job loss, and CWA overwhelmingly rejects this plan," he said. AT&T wants to take termination pay out of the surplus from the over-funded pension plan.
But when it comes to job protections and security for top executives, senior management and board members at both AT&T and Comcast are covering all bases. The two companies filed new corporate governance rules with the Securities and Exchange Commission that, among other items, would ensure that none of the 12 members of the board of directors, including AT&T's top executive C. Michael Armstrong and Comcast president Brian L. Roberts, could be replaced before 2005. After 2005, the top executives could not be removed unless at least nine of the 12 directors vote to do so.
Industry analysts consider these rules highly unusual, especially in the wake of the Enron debacle, the Global Crossing collapse and other high-profile corporate bankruptcies. "The AT&T Comcast board will be entrenched, a move very much out of step with the growing and clearly necessary public scrutiny of corporate boards of directors," Maly said.
AT&T has rejected CWA's offer to begin immediate negotiations for a comprehensive agreement. Talks will open March 11 in Washington.
The AT&T Broadband and Comcast merger must be approved by the Justice Department and shareholders of both companies.
In a very public bid to gain extension of the contract that expires May 11, AT&T tried to paint its offer as giving workers "greater stability in wages and benefits" and improved pension and severance payments.
The company's press release left out the real story, Maly charged, noting that AT&T said nothing about its refusal to discuss jobs and opportunity for workers to move into new job areas in the company.
"AT&T's proposal for termination benefits is nothing but a raid on our members' pension fund, enabling the company to push downsizing costs onto workers. Our members would be financing their own job loss, and CWA overwhelmingly rejects this plan," he said. AT&T wants to take termination pay out of the surplus from the over-funded pension plan.
But when it comes to job protections and security for top executives, senior management and board members at both AT&T and Comcast are covering all bases. The two companies filed new corporate governance rules with the Securities and Exchange Commission that, among other items, would ensure that none of the 12 members of the board of directors, including AT&T's top executive C. Michael Armstrong and Comcast president Brian L. Roberts, could be replaced before 2005. After 2005, the top executives could not be removed unless at least nine of the 12 directors vote to do so.
Industry analysts consider these rules highly unusual, especially in the wake of the Enron debacle, the Global Crossing collapse and other high-profile corporate bankruptcies. "The AT&T Comcast board will be entrenched, a move very much out of step with the growing and clearly necessary public scrutiny of corporate boards of directors," Maly said.
AT&T has rejected CWA's offer to begin immediate negotiations for a comprehensive agreement. Talks will open March 11 in Washington.
The AT&T Broadband and Comcast merger must be approved by the Justice Department and shareholders of both companies.