Monday, July 23, 2012

AT&T Workers to Get 2-3% Annual Sales Increase Under New Contract

AT&T outlined some of the provision in the tentative labor agreements with the Communications Workers of America in core wireline operations for the AT&T Midwest region and AT&T Corp.  Key points of the tentative agreements:

  • General wage increases in each year of the contract – 2.25 percent the first year, 2.75 percent the second year, and 3 percent the third year.
  • A 1 percent pension band increase in each year of the contract to the banded pension plan enjoyed by most current employees. New hires will continue to receive the Bargained Cash Balance 2 Pension Plan, with a one-time, 1 percent pay credit increase and a generous 80 percent match in the AT&T Retirement Savings 401(k) Plan.
  • Continues to provide a guaranteed job offer provision that promises qualified surplused employees a guaranteed job opportunity with AT&T .
  • Maintains one of the most robust health care plans in the nation, continuing to cover 100 percent of network preventive care, maintaining previously company funded health reimbursement accounts, with increases to employee costs. For example, employees with individual coverage will pay monthly contributions of $38 in the first year of the contract, $58 the second year and $79 the third year of the contract. Employees with family coverage will pay monthly contributions of $81, $121, and $163 over the three years of the agreement. New hires will pay higher contributions during their first two years of service, then will go into the same plan as current employees. Deductibles for network care will be $500 for individual coverage and $1,000 for family coverage in each year of the contract.