MEMPHIS, Tenn. — AT&T made "a strong final offer" to employees Thursday, Sept. 5, after 17,000 workers in states across the southeast went on strike against the company in mid-August, calling for fair negotiations.
The offer comes after Communications Workers of America (CWA) said workers walked off the job Aug. 16, 2024, in response to AT&T's failure to bargain in good faith. Workers have been attempting to reach a new contract since June. The labor organization said AT&T did not send representatives to the bargaining table who had authority to make decisions and that the company has reneged on agreements made in bargaining.
AT&T has denied the union's accusations.
Following the dismissal of an independent federal mediator helping the parties bargain, AT&T proposed a final offer to the union on Thursday:
We have made a strong final offer to the CWA District 3 in the Southeast. We believe that this offer, if accepted, would provide our employees with competitive market-based pay that exceeds projected inflation. The Company is also offering to increase its financial contributions to employee healthcare and wellness by up to 25% per year. The terms of this offer are largely in line with the 3 other competitive and fair agreements we’ve reached with our unions this year, including the tentative agreement we bargained with CWA District 9 [West]. We are proud to have the largest unionized workforce in the U.S. telecommunications industry. We respectfully ask CWA employees in the Southeast to carefully consider this offer and to ask their CWA leadership to give them the chance to vote on it.
In part, AT&T sent employees the following letter Thursday:
It’s been more than 2 months since bargaining began in the Southeast, and 20 days since the Communications Workers of America (CWA) called for a work stoppage. From the beginning, we have engaged with the CWA constructively and in good faith, all in pursuit of a single goal – a fair agreement that recognizes the hard work our employees do to serve our customers. At our suggestion, a skilled, independent federal mediator was helping the parties bargain productively, but earlier this week, CWA District 3 representatives decided to dismiss them. Nevertheless, we have continued to offer options and solutions that reward our employees for the work they do.
Unfortunately, after many discussions with the union, it seems clear to us that the current bargaining process is unlikely to reach a resolution any time soon. As a result, we made a final offer to the union that we believe is compelling and in the best interest of our employees, their families, and our company.
Details of AT&T's offered improvements to pay and benefits to employees are available HERE.
CWA's response
In response, CWA President Claude Cummings Jr. called AT&T's message regarding the proposal and status of bargaining amounts to direct dealing "misleading." adding that it's more evidence of the AT&T's "continued bad faith." Cummings also said the CWA members will remain on strike.
The statement in part is available below:
Health care is a critical issue for our members. For weeks, the company refused to provide us with information that is necessary for us to be able to assess costs and develop our own proposals. Their failure to provide that information was part of the unfair labor practice charges that we filed last month that led to the current strike. They also reneged on an agreement to use regional instead of national costs when determining premiums, which is also one of our ULP charges.
What the company is not telling our members and the public is that their health care proposal raises the upfront cost for our members, especially those with family coverage. We have made it clear to the company from the start that raising our members’ cost share percentage is unacceptable, and the fact that they put this proposal forward shows that they have no interest in reaching an agreement. Their plan also shifts enormous prescription drug costs to employees.
Health care is not the only area in which AT&T is misleading our members and the public. Their claim about wage increases does not correspond to the facts of their proposal. For instance, under their proposal, wage increases for someone in the Wire Tech title would net out to just $4,766 over the life of a five-year contract after you consider the health care cost increases for a family plan. Wire Technicians are the face of AT&T, serving customers every day to install internet service at homes and businesses and make repairs in the event of outages.
I have personally spoken to AT&T CEO John Stankey multiple times since the strike began. AT&T finally provided a complete proposal after I demanded that he put it on the table. I am extremely disappointed that this proposal does not meet my, or our members’, expectations. However, after weeks of waiting and the sacrifice of our members who have been on strike, holding the line for 20 days, we finally have an economic package that our bargaining committee can respond to.
CWA members have seen and personally experienced the effects of prolonged outages and wait times for service and repairs. This strike is a hardship for our members and the communities we serve. It’s time for AT&T to engage in productive bargaining where it belongs - at the bargaining table - so we can get back to work serving our customers.