AT&T Reaches Labor Agreement

AT&T continued to reach agreements with labor unions working on the company's core wireline services. The latest group to sign with AT&T was the International Brotherhood of Electrical Workers, which represents some 8,900 employees.

The latest deal, reached Sunday, follows agreements AT&T made earlier with the Communications Workers of America in the Midwest region and the West region. The company said that 50,000 of its core wireline employees have either ratified agreements or have tentative agreements. Most of the employees in the latest deal -- about 8,650 in all -- work in Illinois and northwestern Indiana.

"We're pleased to have a third agreement in hand and we're continuing to work towards resolving contract talks in remaining regions," said Bill Blase, AT&T senior executive VP for human resources, in a statement. Regions where AT&T is still negotiating with unions include the East, Southwest, and Southeast regions. Talks between AT&T and its Legacy unit are also continuing.

Blase praised teams from both sides in the negotiations for working to reach the agreements during a period of difficult economic times.

The agreements call for wage and pension increases over three years in which wages will increase 3% in the first and second years of the agreement and 2.75% in the third year. Pensions will increase 2% in each year of the agreement. AT&T said there may be a cost-of-living adjustment tied to the Consumer Price Index in some cases.

AT&T said health care benefits in the agreements are among the best in the nation and provide for fully funded preventive care and health reimbursement accounts.

AT&T's financial results beginning in 2010 will reflect most of the financial impact from the deals, the company said.

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