Printer Friendly

Early outs at AT&T.

In response to actual and planned layoffs, the American Telephone and Telegraph Co. (AT&T) and its two largest unions, the Communication Workers and Electrical Workers (IBEW), agreed to an enhanced early retirement plan that reportedly almost doubles (to 34,000) the number of unionized workers eligible for such benefits. AT&T has some 165,400 unionized employees worldwide. Communication Workers and Electrical Workers represent about 135,000 of AT&T's work force. Under the early retirement plan, 3 years would be added to an employee's age and years of service in calculating both pension eligibility and retirement benefits. In addition, the plan allows some individual AT&T units to offer greater retirement incentives to nonmanagement employees where there is excess personnel, including adding 5 years of both age and service in calculating eligibility and benefits and a 15percent "sweetener" (increase) to pension benefits.

Reflecting on the bittersweet nature of the agreement, Morton Bahr, Communication Workers president, characterized it as "a very mixed blessing." He added, "It is a sad statement that workers in their late forties and early fifties can only look forward to pension enhancements, when they should have so many years of productive work ahead of them." Bahr said the unions requested AT&T to liberalize pension eligibility requirements "to help ease the unrelenting pain of those workers who face AT&T's continual downsizing." (AT&T expects to lay off some 9,000 workers in 1990.)

The current plan follows a similar early retirement package offered AT&T management personnel last year. Under that plan, each eligible manager opting to retire early had 5 years added to his or her age and tenure, plus 15 percent to pension benefits for up to 5 years.
COPYRIGHT 1990 U.S. Bureau of Labor Statistics
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1990 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Developments in industrial relations; collective labor agreement on early retirement vs. layoffs
Author:Cimini, Michael H.
Publication:Monthly Labor Review
Date:Jul 1, 1990
Words:287
Previous Article:Reopener in rubber.
Next Article:Housing benefits.
Topics:


Related Articles
Future of collective bargaining probed in ILO report.
A view of labor ministries in other nations.
Auto negotiations.
General Dynamics-UAW.
New AT&T job security plans.
Early settlement at NYNEX.
Advance notice and severance pay provisions in contracts.
PAL union members begin voting on new deal.
Complicated labor laws prompt thousands to quit their jobs.
DWP FACES ROADBLOCK IN FIRINGS; HEARINGS ORDERED BY CITY EMPLOYEE RELATIONS BOARD.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters