AT&T strike continues in Southeast as company presents ‘final offer’ for union contract

By Cassandra Stephenson 

Thousands of unionized AT&T workers across the southeast marked their 20th day on strike Thursday amid a bargaining stalemate over a new contract with the telecommunications giant.

AT&T on Wednesday presented the southeast district of The Communications Workers of America (CWA) with what it calls its “final offer,” proposing cumulative wage increases of up to 18% over the life of the 5-year agreement and higher company contributions to employees’ health care benefits.

In a Thursday statement, CWA President Claude Cummings, Jr. said this is the first formal, complete proposal the company has offered, and called AT&T’s messaging “misleading.” The company’s health care proposal would raise up-front employee costs, particularly for family coverage, and shift “enormous prescription drug costs to employees,” according to Cummings. And with those extra costs, the proposed wage increases wouldn’t be as impactful.

“The devil, as they say, is in the details,” Cummings stated.

Dallas-based AT&T is the largest private broadband company in Tennessee, with AT&T Fiber service available to more than 990,000 customer locations across the state, according to the company’s website. It’s also the number-two political spender in the state, reporting $9.9 million in lobbying expenses and donations since 2009.

 In Nashville, a union member on the picket line. (Photo: John Partipilo)

Meanwhile, reports of delayed service time and outages have surfaced in the southeast region.

In an Aug. 16 statement, AT&T said the company has “various business continuity measures in place to avoid disruptions to operations and will continue to provide our customers with the great service they expect.” Reached via email, an AT&T spokesperson said Thursday that the company is “not aware of any service issues” related to the strike in the southeast.

‘Final’ offer marks first complete proposal, union says

AT&T delivered their proposal to CWA representatives at 6 p.m. Wednesday and “stated that they were willing to continue bargaining,” Cummings said. CWA provided a counter-proposal at 11 p.m.

In a published statement to the media and employees, AT&T said it believes its proposed contract terms are “largely in line” with three other union agreements reached this year, and urged unionized employees to consider the offer and ask their CWA leadership to put the contract to a vote.

“Unfortunately, after many discussions with the union, it seems clear to us that the current bargaining process is unlikely to reach a resolution any time soon,” the company stated.

More than 17,000 technicians, customer service representatives and other employees in Tennessee and eight other southeastern states have been on strike since Aug. 16, saying AT&T has refused to bargain in good faith. The company has repeatedly denied these allegations.

AT&T and CWA had been working with a federal mediator at the company’s suggestion, but CWA withdrew from that process on Monday, citing AT&T’s “disingenuous use of the mediation process to stall the negotiations.”

CWA District 3’s previous 5-year contracts with AT&T expired on Aug. 3, and union members have been attempting to negotiate a new contract since June.

Cummings said AT&T refused to provide CWA with information that would allow the union to develop its own proposals for health care benefits, and “reneged” on an agreement to base premiums on regional — not national — cost estimates.

What’s on the table

According to AT&T, their offer includes:

• Compounded wage increases of nearly 18% over 5 years, starting with a 5% increase upon contract ratification
• Increased company contributions to healthcare by up to 25%, starting in 2026, with $0 copays for primary care and fixed copays at the doctor’s office
• Dependent health coverage through age 26
• A coinsurance model that “preserves or lowers the cost for the vast majority of the 50 most commonly prescribed medications”
• Access to surrogacy and fertility services and “enhanced reimbursements for adoption expenses”
• An annual company match of up to $2,000 for family Health Savings Accounts (up to $1,000 for individuals)
• $750 in “wellbeing incentives” for employees (and up to $750 for their spouse/partner)
• Continued retirement benefits and pension band increases

Wire technicians, who install internet services and make repairs, would “be in the highest wage zone by the end of this agreement,” according to AT&T. They would also receive “more advanced notice for schedule changes,” double-time pay for hours worked in excess of 54 hours per week, and a “lower cap on mandatory overtime.”

Cummings said considering cost increases for family health care plans under the offer, wire technicians would net about $4,766 in wage increases over the 5-year contract. AT&T said the “average employee” would see more than $40,000 in added cumulative wages by the end of the agreement.

This article originally appeared in the Tennessee Lookout on September 6th, 2024

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