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AT & T freezes pay of nonunion workers.

in the latest of several cost containment moves, American Telephone & Telegraph Co. froze the salary structure for 114,000 nonunion employees. The company's efforts, which earlier included closing of some facilities and offering early retirement to employees, were part of its plan for adapting court-ordered divestiture of its operating companies.

The freeze, scheduled to last through 1985, was expected to save the company $184 million, or 4 percent, in salary expenses in that year. Actually, the employees will continue to be eligible for annual increases, but they will not be as large as usual. The salary system consists of about five informal yearly "steps" within each of 10 salary grades. In the April 1985 salary review, deserving employees will move up one step, an increase of about 4 percent. Previously, such employees also benefitted from annual increases in the level of each step.

Employees will continue to be eligible for promotions, which means that they move up one grade or more. Incentive bonus programs, which cover more than half of the 114,000 workers, also were continued.
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Publication:Monthly Labor Review
Date:Sep 1, 1984
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