Summary
AT&T Inc. (T) announced on May 22, 2018, that it has presented new contract offers to the Communications Workers of America (CWA) for approximately 13,100 wireline employees. These offers pertain to the Midwest and Legacy T (AT&T Corp.) labor contracts. The proposed agreements include significant wage increases totaling over 11% compounded annually across the contract term, which would expire on April 9, 2022, if ratified. Additionally, AT&T would continue to cover a substantial portion of healthcare costs, maintain both pension and 401(k) plans with specific enhancements for pension bands and retirement savings participation, and uphold employment security commitments for qualified employees.
Key Highlights
- 1New contract offers presented to CWA for ~13,100 wireline employees covering Midwest and Legacy T contracts.
- 2Total compounded annual wage increases exceeding 11% over the contract term.
- 3Wage increases include specific percentages effective upon ratification (3.00%), April 2019 (2.25%), April 2020 (3.00%), and April 2021 (2.50%).
- 4Company will pay approximately 70% of total employee healthcare costs, including 100% of preventive care.
- 5Existing employment security commitments for qualified employees will be maintained.
- 6Offers continue to provide both a pension plan (with 1% annual band increases for eligible employees) and a 401(k) savings plan.
- 7Proposed contracts, if ratified, would expire on April 9, 2022.
Frequently Asked Questions
This 8-K filing announces that AT&T has submitted new contract proposals to the Communications Workers of America (CWA) for approximately 13,100 wireline employees. The offers aim to establish new labor agreements for the Midwest and Legacy T (AT&T Corp.) contracts.
The primary financial implications include a commitment to wage increases totaling over 11% compounded annually throughout the contract term. Additionally, AT&T will continue to cover a significant portion of healthcare costs and contribute to pension and 401(k) plans, which represent ongoing operational expenses.
If the proposed contracts are accepted and ratified by the unionized employees, they would expire on April 9, 2022.
The offers maintain existing benefits, including both pension and 401(k) plans. Specifically, employees under the banded pension plan would receive annual 1% pension band increases, and all covered employees will participate in the AT&T Retirement Savings Plan. AT&T will cover about 70% of total healthcare costs, including 100% of preventive care.