AT&T Employees Vote to Ratify the Southeast and West Agreements

Rhea-AI Summary

AT&T has successfully ratified two collective bargaining agreements with the Communications Workers of America (CWA), covering approximately 23,000 employees. The agreements include:

• A 5-year agreement with CWA District 3 in the Southeast, covering about 15,000 employees across 9 states, expiring on Aug. 4, 2029.
• A 4-year agreement with CWA District 9 in the West, covering about 8,400 employees in California and Nevada, expiring on April 8, 2028.

As the largest employer of union-represented employees in the U.S. telecommunications industry, AT&T emphasizes its commitment to growing 5G and fiber with a strong union workforce. The agreements provide competitive market-based wage increases, comprehensive benefits, and improved job security, positioning the company for sustainable growth while recognizing employee contributions.

Positive

• Ratification of two collective bargaining agreements covering 23,000 employees
• Competitive market-based wage increases that exceed projected inflation
• Improved job security and schedule stability for employees
• Increased company contributions to employee healthcare and wellness

Negative

• None.

Insights

Labor Relations Expert

This agreement between AT&T and the CWA is a significant development for the company's workforce stability and operational efficiency. The ratification of these long-term contracts, covering 23,000 employees across multiple states, provides AT&T with labor certainty for the next 4-5 years. This is particularly important as AT&T focuses on expanding its 5G and fiber networks, which require a skilled and reliable workforce.

The agreements' provisions for market-based wage increases above projected inflation, improved healthcare contributions and enhanced job security are likely to boost employee morale and productivity. This could translate into better customer service and potentially improved financial performance for AT&T in the long run.

However, investors should note that these enhanced benefits may increase labor costs in the short term. The impact on AT&T's bottom line will depend on how effectively the company can leverage its unionized workforce to drive growth in its strategic areas of 5G and fiber expansion.

Telecom Industry Analyst

AT&T's successful negotiation of these union agreements is strategically important for its position in the highly competitive telecommunications market. By securing a stable workforce for its critical infrastructure roles, AT&T is better positioned to execute its 5G and fiber expansion plans, which are essential for future growth and competitiveness.

The company's emphasis on being the largest employer of union-represented employees in the U.S. telecom industry could be a double-edged sword. While it may provide stability and skilled labor, it also potentially limits flexibility in adapting to rapid technological changes and market shifts. Investors should watch how this balance affects AT&T's ability to innovate and control costs compared to less unionized competitors.

The long-term nature of these agreements (4-5 years) provides predictability for financial planning but may also lock AT&T into commitments that could become burdensome if market conditions change significantly.

DALLAS, Oct. 18, 2024 /PRNewswire/ -- Our highly skilled, unionized workforce strongly positions us to grow 5G and fiber.

Key Takeaways:

• AT&T ratifies agreements with the Communications Workers of America (CWA) in the Southeast and West, covering about 23,000 employees.
• AT&T is proud to be the largest employer of union-represented employees in the U.S. telecommunications industry.
• AT&T's labor agreements support the company's commitment to employees' total wellbeing by providing wages and benefits that are among the best in the nation.

What's the news? AT&T employees represented by the CWA voted to ratify two collective bargaining agreements. The 5-year agreement with CWA District 3 in the Southeast covers about 15,000 employees who primarily work in technician, call center, machine operator, and other customer service roles in AL, FL, GA, KY, LA, MS, NC, SC, and TN, and is set to expire on Aug. 4, 2029. The 4-year agreement with CWA District 9 in the West covers about 8,400 employees who primarily work in those same roles in CA and NV, and is set to expire on April 8, 2028.

Why is this important? AT&T is the largest employer of union-represented employees in the U.S. telecommunications industry, where more than 62,000 AT&T employees are unionized. AT&T's high-performance wireless and fiber networks provide a foundation for U.S. economic growth, innovation, and individual opportunity, and AT&T is focused on growing 5G and fiber with a strong union workforce.

"We are proud to support the needs of our unionized employees as they make these connections possible for our customers and communities," said Jamie Barton, senior vice president of Global Human Resources and Labor Relations, AT&T. "We believe that to be the best connectivity provider, our agreements must allow us to compete for the best people and have the best operations that can adapt to evolving customer demands. These new agreements position the company for sustainable growth and ensure we continue to recognize the work our employees do every day to serve our customers."

AT&T's labor agreements support the company's commitment to employees' total wellbeing by providing wages and benefits that are among the best in the nation, promoting the physical, emotional, financial and social wellbeing of employees, their families and their communities. These agreements include competitive market-based wage increases that exceed projected inflation, comprehensive retirement benefits, increases in the company's financial contributions to employee healthcare and wellness, better schedule stability, job security, and more.

Thanks to strong, long-term relationships with our union partners, the company has now reached 18 agreements since the beginning of 2022, including seven contracts ratified this year.

About AT&T

We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

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SOURCE AT&T

FAQ

How many employees are covered by AT&T's new CWA agreements in 2024?

AT&T's new CWA agreements cover approximately 23,000 employees, with about 15,000 in the Southeast and 8,400 in the West.

What is the duration of AT&T's (T) new labor agreements with CWA?

AT&T's agreement with CWA District 3 in the Southeast is for 5 years, expiring on Aug. 4, 2029, while the agreement with CWA District 9 in the West is for 4 years, expiring on April 8, 2028.

How many union-represented employees does AT&T (T) have in the U.S. telecommunications industry?

AT&T has more than 62,000 union-represented employees, making it the largest employer of unionized workers in the U.S. telecommunications industry.

What benefits are included in AT&T's (T) new labor agreements?

The new agreements include competitive wage increases, comprehensive retirement benefits, increased company contributions to healthcare and wellness, better schedule stability, and improved job security.