How AT&T's Outsourcing Compromises Customer Service and Job Quality

Frustrated that AT&T has failed to come to the table with serious proposals that protect good jobs, wireless retail workers – members of CWA – are taking their concerns about the telecom giant's expanding web of third-party dealer stores, known as authorized retailers, directly to customers. Workers launched a new website – ATTConsumerAlert.org – that provides tips to help customers spot these dealer stores and their Wells Fargo-style quota systems that may create service headaches for millions of people.

A new report released by CWA provides an in-depth look at the company's vast network of more than 3,360 stores that operate under the guise of AT&T's logo but are actually owned by third parties that run a low-cost business model that brings risks of not only worker exploitation, but also customer harm. Over the past few years, AT&T has increasingly handed over the operations of its retail operations to these third-party dealers—they now represent over 60% of all AT&T branded stores.

"Because AT&T's authorized retailers push a 'quantity over quality' mentality, in my experience authorized retail employees simply don't have the resources to provide the trustworthy and reliable customer service customers expect," said John Morrison, an AT&T retail worker in Florida. "There is a never-ending stream of AT&T customers coming into my store with complaints from dealers. What's the result: my co-workers and I lose out on our own pay to clean up the mess and our customers get the runaround—all while AT&T brings in billions in profits."

The Consumerist published a piece highlighting the issues with AT&T's network of third-party dealers:

"AT&T's third party dealer stores look like full-fledged AT&T outlets, but they are often skeleton operations with smaller staffs and less ability to meet customer needs,” reads a newly released report [PDF] from the union. "It appears that the companies running these stores are not looking to burnish the brand – after all, they depend on AT&T to provide a quality network and compelling marketing – rather they seem to be seeking to maximize sales with minimum expenses."

The CWA maintains that third-party owned locations provide a degraded customer service experience, and their report contains a long list of alleged issues that they claim stem from a sales-focused culture, lower pay, and aggressive commission structure offered by third-party dealers. The union is pushing for AT&T to commit to a specific ratio of corporate-owned to authorized retailers — a concession that would place a check on the growth of the third-party operations.

Read the full piece here.