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CWA Calls on New Jersey to Back SBC-ATT Merger

CWA made its case that the merger of SBC Communications and AT&T is in the best interests of industry employees and consumers at a hearing convened by the New Jersey Board of Utilities in Somerville, N.J.

Regulators in some states are reviewing the merger of SBC and AT&T to ensure that it has a positive impact on workers, consumers and competition.

Laura Unger, president of CWA Local 1150, told the board that the merger was critical to stopping the continuing decline of AT&T. "At AT&T, there have been nothing but bad business decisions, bad purchases, bad sales ... one bad decision after another that has led to a loss of jobs and a loss of shareholder value. Maybe under the leadership of SBC, we will have a future," she stressed.

Unger recounted AT&T's history in New Jersey, noting that it was once the largest private employer in the state. "AT&T has closed building after building in New Jersey," with the work eliminated, sent to contractors or shipped overseas, she said.

She called on the board to approve the merger, and to vigilantly monitor the performance of SBC in terms of jobs, service quality and prices. "Clearly, it makes sense to have AT&T be a part of a company that can offer a myriad of services," she added.

Suman Ray, CWA research economist, reinforced the importance of the merger to AT&T employees. "AT&T cannot survive on a stand-alone basis. The company has been in a financial free-fall over the past several years and its demise is certain absent a merger," he said.

He stressed that the merger poses no harm to competition, because currently "SBC has virtually no presence in New Jersey." But consumers will benefit from SBC's plan for AT&T that "will create a new vigorous provider of innovative telecommunications products," he said. "The merged AT&T-SBC will be able to deliver new and better networks and services faster than they would have been able to do separately," he told the board.