AT&T Releases Details of Tentative Agreements in AT&T Midwest, AT&T Corp Core Wireline Contract Negotiations

AT&T Releases Details of Tentative Agreements in AT&T Midwest, AT&T Corp Core
                        Wireline Contract Negotiations

PR Newswire

DALLAS, July 23, 2012

DALLAS, July 23, 2012 /PRNewswire/ -- AT&T* today provided details of
tentative agreements it reached on July 21 with the Communications Workers of
America in core wireline contract negotiations for the AT&T Midwest region and
AT&T Corp (CWA Communications and Technologies unit).

The Midwest contract covers more than 13,000 employees in Illinois, Indiana,
Ohio, Michigan, and Wisconsin. The AT&T Corp contract covers about 5,700
employees located throughout the country.

Both labor contracts will be submitted to the CWA's membership for a
ratification vote in coming days. The prior contracts negotiated in 2009
expired on April 7 of this year and employees have worked under the terms of
these expired contracts while negotiations continued.

Among provisions of the tentative agreements:

  o General wage increases in each year of the contract – 2.25 percent the
    first year, 2.75 percent the second year, and 3 percent the third year.
  o A 1 percent pension band increase in each year of the contract to the
    banded pension plan enjoyed by most current employees. New hires will
    continue to receive the Bargained Cash Balance 2 Pension Plan, with a
    one-time, 1 percent pay credit increase and a generous 80 percent match in
    the AT&T Retirement Savings 401(k) Plan.
  o Continues to provide a guaranteed job offer provision that promises
    qualified surplused employees a guaranteed job opportunity with AT&T – an
    employment security provision that is virtually unheard of in most of
    corporate America today.
  o Maintains one of the most robust health care plans in the nation,
    continuing to cover 100 percent of network preventive care, maintaining
    previously company funded health reimbursement accounts, with increases to
    employee costs. For example, employees with individual coverage will pay
    monthly contributions of $38 in the first year of the contract, $58 the
    second year and $79 the third year of the contract. Employees with family
    coverage will pay monthly contributions of $81, $121, and $163 over the
    three years of the agreement. New hires will pay higher contributions
    during their first two years of service, then will go into the same plan
    as current employees. Deductibles for network care will be $500 for
    individual coverage and $1,000 for family coverage in each year of the
    contract.

 

More details of the agreements will be posted in coming days at
http://bargaining.att.com/corewireline.

AT&T continues to bargain with the CWA in the East and West regions, where
contracts also expired April 7 and employees continue to work under the terms
of the old contracts; and in the Southeast, where the current contract expires
on Aug. 4.

*AT&T products and services are provided or offered by subsidiaries and
affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company and one of the
most honored companies in the world. Its subsidiaries and affiliates – AT&T
operating companies – are the providers of AT&T services in the United States
and around the world. With a powerful array of network resources that includes
the nation's fastest mobile broadband network, AT&T is a leading provider of
wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader
in mobile broadband and emerging 4G capabilities, AT&T also offers the best
wireless coverage worldwide of any U.S. carrier, offering the most wireless
phones that work in the most countries. It also offers advanced TV services
under the AT&T U-verse^® and AT&T |DIRECTV brands. The company's suite of
IP-based business communications services is one of the most advanced in the
world.

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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release contains financial estimates and
other forward-looking statements that are subject to risks and uncertainties,
and actual results might differ materially. A discussion of factors that may
affect future results is contained in AT&T's filings with the Securities and
Exchange Commission. AT&T disclaims any obligation to update and revise
statements contained in this news release based on new information or
otherwise.

SOURCE AT&T Inc.

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Contact: Marty Richter, +1-314-982-1787, cell, +1-618-401-0844,
mrichter@connected.att-mail.com