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Labor Stunner: AT&T's CWA Workers Reject New Agreement

September 29, 2012 - News

After lengthy negotiations that resulted in a labor agreement between AT&T and employees in its Southeast region, workers in those nine states have sent the company and the union back to the drawing board by turning down a proposed deal.

The carrier will move forward with efforts to come up with a deal that will satisfy both sides, AT&T told Reuters Friday, the same day that the three-year contract covering 22,000 employees got the heave-ho.

The deal would've given union workers a wage increase of 2.25 percent the first year, 2.75 percent in the second year and 3 percent in the third year. The contract also provided that employees with individual health-care coverage would pay monthly contributions of $38 in the first year, $58 in the second year and $79 in the third year of the agreement, the telecom giant announced last month. Employees with family coverage would've made monthly contributions of $81, $121 and $163 during the three years.

AT&T workers on opposite coasts went on strike for a couple of days this past summer, citing unfair labor practices.

The CWA didn't immediately respond to Reuters' interview request late Friday.

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