MOVEMENT IN SBC, UNION TALKS EMPLOYEES BACK TODAY FROM FOUR-DAY STRIKE.

Byline: Evan Pondel Staff Writer

Union workers and SBC Communications Inc. reported progress toward reaching a new contract Monday, but obstacles still exist as employees return to work today following a four-day strike.

About 100,000 employees represented by the Communications Workers of America walked off the job Friday to rally for health care benefits and job security. Union leaders said progress was slow, although there had been some improvement in terms of more training for domestic jobs. Employment issues still loom large as workers fret about losing positions to India.

``We are pleased with the way the strike went over the weekend, and, from what I've been told, there has been some progress regarding jobs of the future,'' said Dan McCrory, an SBC power technician and president of a CWA local in North Hollywood. ``Striking is a lose-lose scenario for all.''

Though the walkout ended Monday at midnight, McCrory said, the union would consider striking again as a last resort. At least 30,000 California employees and thousands more across 12 other states were expected to join picket lines over the weekend.

SBC amassed a team of about 40,000 employees to replace striking workers; many of them included retirees and those from the ranks of management.

As of Monday morning, SBC officials said, there were still contractual demands that could jeopardize the company's profits. ``And this strike has not affected SBC's stance on the negotiations,'' said John Britton, a spokesman with SBC in San Francisco. ``We need a contract that gives SBC the cost structure and flexibility to now compete with cable companies.''

San Antonio-based SBC - the second largest of four Baby Bell local phone operators - is in the process of morphing into a multimedia company as consumers demand both Internet and telephone service at the same time. Britton would not say whether the company anticipated hiring more retirees should workers strike again.

``But we are very hopeful for a settlement, and we think progress is being made,'' he said.

Another strike could pose more disruptions in telephone and Internet service nationwide. SBC has reported no major problems so far, although six neighborhood telephone boxes were vandalized in the San Francisco Bay area over the weekend. Approximately 1,200 customers were without telephone service for three to seven hours Friday through Saturday.

The company is offering a $25,000 reward for more information on the vandalism.

``And we're not blaming anyone, but they had the right equipment,'' Britton said.

Tension is running high as both the union and SBC have yet to reach a contract agreement after three months of fruitless negotiations. Union leaders said if negotiations continue to stall the workers will begin the second phase of a bargaining strategy. That includes asking friends and family members to pledge they will switch telephone service if the union deems it necessary.

Evan Pondel, [phone]

evan.pondel(at)dailynews.com