Unions Reach Contract Deal
Dow Jones Newswires
The Wall Street Journal
Monday, December 12, 2005
WASHINGTON -- AT&T Inc. reached an agreement with two
unions, granting 11,000 pre-merger employees new three-year,
The telecommunications company, which was formed when
telecommunications company SBC Communications Inc. acquired
AT&T Corp. in November, said in a press release Sunday that
the agreements reached with the Communication Workers of
America and the International Brotherhood of Electrical
Workers provide for four annual base wage increases at
11.2%, compounded, over the life of the contracts.
Pension benefits were increased by 6% in 2006 and by an
additional 5% in 2008.
Employee co-payments and maximum out-of-pocket limits were
increased for medical and prescription drug benefits for
employee and retiree coverage. The retiree healthcare cap
on company contributions, which was increased to $9,000 a
retiree, provides that no retiree will contribute toward the
point of service or traditional indemnity options during the
term of the agreements.
AT&T said the agreements help the company control healthcare
cost but don't require monthly contributions.
The company also said an agreement was reached that, before
being laid off, AT&T will offer employees a position at the
Ratification will take place over the next several weeks.
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