AT&T Inc. : AT&T Reaches Union Pact With 7,000 Wireline Workers
07/13/2012| 04:53pm US/Eastern
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--AT&T reaches one-year extension to three-year union deal that expired in June
--Deal covers 7,000 workers that rejected previous pact
(Updates with company comment and details beginning in the first paragraph.)
By Thomas Gryta and Nathalie Tadena
AT&T Inc. (T) reached an one-year extension agreement with a union representing 7,000 wireline employees on Friday, after the workers rejected a similar pact last week.
The agreement extends the terms of the workers' current contract, which had been in place for three years and expired last month, without modification until June 22, 2013. Most of the employees covered under the contract are members of International Brotherhood of Electrical Workers, or IBEW, Local 21 and are in Illinois and northwestern Indiana.
Last week, the workers' union failed to ratify a one-year contract extension, reached in May, that included a 1% base-salary increase and other provisions. Union officials weren't immediately available to comment on whether this new extension will require ratification.
The IBEW workers are among the roughly 30,000 AT&T union workers that have contracts expiring by Aug. 4. The company has about 256,000 total employees.
AT&T remains in talks with the Communications Workers of America, which is representing a group of about 40,000 wireline workers, after their contract expired in April. Those workers are working under the terms of their previous contract.
An AT&T spokesman, Marty Richter, said the company continues to work with the union.
"We are making progress and remain at the bargaining table," he said.
Officials from the CWA weren't immediately available for comment, but an update on its website said discussions continued on Friday and would resume Monday.
In general, the telecom carriers have seen their wireline businesses deteriorate as people depend more heavily on mobile devices and switch off their traditional land-based home phones.
In recent quarters, AT&T has seen slight revenue declines in its wireline division, which includes traditional home and business telephones and the U-verse television service.
AT&T shares closed up 1.4% at $35.35. The stock is up 17% since the beginning of the year.
Write to Thomas Gryta at thomas.gryta@dowjones.com and Nathalie Tadena at nathalie.tadena@dowjones.com
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