AT&T Presents Final Offer to Southeast Employees, Urges Union Members to Vote

MEMPHIS, Tenn.— AT&T is urging its Southeast employees to vote on a new agreement after over two months of negotiations and a recent work stoppage called by the Communications Workers of America (CWA). AT&T workers went on strike on August 16, 2024 and despite the union dismissing a federal mediator, AT&T continues to negotiate and has made a final offer. The proposed agreement, circulated in an email from a company representative, includes:

  • Wage Increases: Nearly 18% compounded over five years, with an immediate 5% raise upon ratification.
  • Health Benefits: Enhanced coverage starting in 2026, including lower premiums, better copays, and expanded family benefits. Notable increases in company contributions to Health Savings Accounts and wellbeing incentives are also included.
  • Retirement Benefits: Continued comprehensive retirement plans with a generous company match and pension increases.
  • Wire Technicians: Higher wages, more advanced notice for schedule changes, lower mandatory overtime caps, and double-time pay for extra hours.

AT&T emphasizes that this offer is competitive and reflects their commitment to fair compensation and benefits. They have successfully reached 14 other labor agreements since 2022 and believe this offer will benefit employees and their families. The AT&T website states that the company is “committed to reaching a fair agreement that recognizes the work our employees do every day to serve our customers. As part of this, we support employees’ total wellbeing with wages and benefits that are among the best in the nation.”

CWA President Claude Cummings Jr. criticized the company’s approach as misleading and indicative of “continued bad faith.” Cummings highlighted several key issues such as AT&T’s failure to provide necessary information about healthcare costs, which contributed to unfair labor practice charges and the ongoing strike. Cummings expressed disappointment with AT&T’s proposal, emphasizing that it falls short of expectations and fails to address critical concerns. He urged AT&T to engage in genuine negotiations to resolve the strike and improve service for customers.

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The telecom conglomerate made a final offer to the CWA District 3 which represents around 17,000 Southeast employees currently on strike. This strike involves internet service technicians, customer service representatives, and other workers across nine states, including Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. The walkout began last month after contract negotiations reached an impasse.

On Sept. 5, AT&T CFO Pascal Desroches updated shareholders  at Bank of America Media, Communications and Entertainment Conference. Desroches affirmed confidence in meeting the financial targets outlined in the July 2024 earnings report. The company remains committed to significant investment in U.S. connectivity infrastructure, with expected capital expenditures of $21-22 billion for 2024 to support 5G and fiber development. AT&T also aims to achieve over $2 billion in cost savings by mid-2026 and is on track to reduce its net-debt to adjusted EBITDA ratio to 2.5x by early 2025. Additionally, the company plans to address short-term financing needs while improving its free cash flow.

AT&T’s history in Louisiana spans over a century, beginning with the early Bell Telephone Company and evolving through significant mergers, including the acquisition of BellSouth in 2006. The company has expanded its services in the state to include broadband, wireless and fiber-optic networks, contributing to local economic development and community initiatives. However, recent labor disputes highlight ongoing concerns about fair wages and benefits.

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