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AT&T, TWO NATIONAL UNIONS REACH A CONTRACT SETTLEMENT

 AT&T, TWO NATIONAL UNIONS REACH A CONTRACT SETTLEMENT
 WASHINGTON, July 2 /PRNewswire/ -- AT&T (NYSE: T) today announced


details of a tentative three-year contract agreement with the Communications Workers of America and the International Brotherhood of Electrical Workers providing for improved wages and pension benefits, new career security measures, new compensation plans for some sales employees, issuing stock to employees and giving them a greater voice in decisions affecting them.
 The agreement, subject to ratification by some 125,000 AT&T employees, is retroactive to May 31 and runs through May 1995. The negotiations between AT&T and the unions began March 30 and continued beyond the scheduled expiration of the current three-year contract last May 30.
 "This agreement strengthens AT&T's competitiveness while affording employees increased career security and a direct financial stake in the company," said William K. Ketchum, AT&T Vice President-Labor Relations. He added:
 "These were tough but productive negotiations. They demonstrated that collective bargaining works. While management and labor at times may disagree, both must be involved in helping the company succeed and in ensuring that employees share in that success. AT&T is more committed than ever to work with the CWA and IBEW to give our employees a greater voice in decisions that affect them. As time passes, AT&T will be a better and stronger company because both sides decided in these negotiations to find new ways to work together."
 The settlement calls for wage increases of up to 11.8 percent of base wages over three years. Those receiving the 11.8 percent increase will get 4 percent in the first year of the contract, 3.9 percent in the second year and 3.9 percent in the third year.
 In addition, pensions will increase 13 percent for workers retiring after May 31, 1992.
 Other details of the settlement include: STOCK PLAN
 -- As a way to increase employees' financial stake in AT&T and allow them to share in the company's success, AT&T will establish a stock ownership program called "Shares for Growth." The company will award $3,300 worth of AT&T stock in two installments -- $1,500 worth on October 15, 1992 and $1,800 worth on October 14, 1994. The first installment will be based on the value of the stock as of September 21, 1992; the second installment will be based on the value of the stock as of September 21, 1994. CAREER SECURITY
 -- For workers whose jobs are declared surplus, the contract specifies a variety of new alternatives to layoffs. Depending on how many years they've worked at AT&T, these workers can choose among a special unpaid leave of up to two years to pursue career or personal interests while the company pays all benefits -- including tuition assistance; a voluntary lump sum payment to leave the business; or, for those within a year of pension eligibility, an unpaid transition leave of absence until they become pension eligible. An additional option allows those with at least five years of service to be referred to an in-house placement agency to find temporary jobs in the company at no loss of pay. One of the first groups of employees eligible for this option would be operators affected by office closings. Those qualifying could have their income protected for up to two years.
 -- Improvements to the AT&T Transfer System (ATS), an electronic information system to help employees find other jobs in AT&T. Access to the system will be expanded to include those on short term disability and to employees who were laid off after March 31, 1992. In addition, moving expense reimbursements will be increased to $12,000, from the current $7,500, for those whose jobs are surplus and must move to new locations.
 More than 14,000 non-management employees have found jobs through ATS since 1989 when the company and unions established the system.
 -- A minimum of 40 hours of training/education per year per employee, expanding the range of courses for which employees can receive tuition reimbursement, reimbursing employees with undergraduate degrees for the cost of obtaining a teaching certificate, granting time off for employees who serve as literacy or bilingual training volunteers. WORK/FAMILY PROGRAMS
 -- AT&T, the CWA and IBEW further strengthened work-family programs on which they reached breakthrough agreements in 1989, and which have been recognized as pace setters in industry. The company will add $2.5 million to a $7.5 million family care fund which, among other things, makes grants to outside agencies to improve the quality of care afforded employees' children. In addition, the company will establish a new telephone referral service to help employees find quality schools for their children. Also, for the first time, the company will fund 40 academic scholarships (up to $10,000 per year for four years) for the children of employees.
 Other improvements to existing work/family programs include providing company benefits for up to 12 months (up from the current six months) for employees on child or family care leave; expanding adoption assistance to cover costs incurred in adopting stepchildren; adding an adoption referral service and increasing the reimbursement for adoption expenses to $2,500, from the current $2,000. WORKPLACE OF THE FUTURE
 -- Both AT&T and the unions, recognizing that the role of unions can be enhanced, agreed to have union officials serve on joint planning councils to provide input on key business decisions, such as the way technology that affects people is deployed. MEDICAL, DENTAL, LIFE INSURANCE
 -- Improvements to the vision and dental care plans, reductions in premiums for supplemental life insurance, increased life insurance for spouses and children at no additional cost, and other improvements.
 -0- 7/2/92
 /CONTACT: Jim McGann, 202-457-3942, or home, 301-585-5519, or Herb Linnen, 202-457-3933, or home, 202-333-9162, both of AT&T/
 (T) CO: AT&T ST: District of Columbia IN: TLS SU:


KD -- NY021 -- 6084 07/02/92 10:31 EDT
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Date:Jul 2, 1992
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