Change in FMLA Entitlement Tracking Method

Lori J. Smith
Director, Labor Relations

October 18, 2006

Mr. R. V. Maly, Jr., Vice President, CWA
Mr. J. U. Klimm, Assistant to Vice President, CWA
Ms. M. J. Pultar, Director of Telecommunications, IBEW
Mr. P. A. Pusateri, Chairman, System Council T-3, IBEW

Re: Change in FMLA Entitlement Tracking Method

This is to inform you that beginning January 1, 2007, pre-merger AT&T employees will use the calendar-year method (January 1 to December 31) permitted under federal law to determine and track an employee's 12-week FMLA allotment. All eligible employees will be entitled to a maximum of 12 weeks of FMLA leave within this time period. This replaces the rolling-year method used in the past, which ran from any day of the year to the same date on the following year.

This modification, which will align pre-merger AT&T employees with the pre-merger SBC process, will simplify tracking of an employee's FMLA allotment.

Additional information will be provided to employees on this process in December

2006. I will update you as this information becomes available. I would ask that you not post this information on your websites until the afternoon of October 24, 2006.

If you have any questions, please contact Susan McDermott on 610-330-9700.

Regards,

Lori J. Smith

Cc:D. Bradley
    S. McDermott