The agreement covers 8,900 employees in the legacy wireline business. Most of those staff are located in Illinois and northwestern Indiana.
The ratified contract provides a 3 percent wage increase in each of the first two years; a 2.75 percent raise in the third; and pension contributions that rise 2 percent each year.
There’s also the chance that AT&T will pay a cost-of-living adjustment in the third year.
Meanwhile, workers will shoulder more of their own health care expenses. Still, the new agreement calls for AT&T to pay for 100 percent of preventive care costs, as well as a health care reimbursement account for eligible employees.
AT&T and its union affiliates have been negotiating since February of this year. AT&T said it has forged tentative deal with about 60,000 wireline union workers.