A contract between AT&T and the Communications Workers of America (CWA), a union that represents AT&T expired on April 4. For now, (April 15) there has been no new news and it appears that AT&T has avoided an immediate strike, but this is a tough situation. AT&T reported $12.9 billion in profit last year, driven in large measure by its wireless business. The company has staked its position on gaining concessions from employees on health care costs to avoid the problems that have hit the US auto market. The CWA argues that AT&T should be using its strength to improve workers' standard of living and job security. With 12,000 recent job cuts made by AT&T,from AT&T's shrinking land-line business, the union is seeking to ensure these workers get jobs in the growing wireless and TV services.
This posting does not pick sides. Instead, there is advice on steps for enterprises to prepare if there is a strike. At the end of this posting you can find a link to CWA's "Get Ready to Strike" song and ringtone!
This contract negotiation is different from the CWA contract which was settled on March 3 for AT&T Mobility. With this mobility contract, retail employees gain a pay increase of 8.8 percent over the four year contract period, and a $500 bonus. As a result of this contract, 11,000 retail sales associates are also guaranteed $1,000 in comissions if sales goals are met. Approximately,
500 customer service workers receive job upgrades and raises, and 50-70 wireless technicians will see similar enhancements.
This contract, which expired on April 4. It covers AT&T East, AT&T Midwest, AT&T Southwest, AT&T West and AT&T Legacy, a nationwide unit. The CWA argues that insists that AT&T "refuses to discuss existing retirees; wants healthcare premiums for all including future hires and retirees; deductibles based on income; outrageous out of pocket expense limits; modified pensions with no pension for new hires; bonuses instead of guaranteed pay increases in some years; eliminate Team awards; etc."
Another division, AT&T Southeast, will not strike now because their contract expires on August 8. However, the union has lumped negotitations for that contract with the those that are set to expire. The contract expired on Saturday, April 4 at 11:59 p.m., Both sides have agreed to continue labor contract talks.
Enterprises Must Protect Themselves
It is difficult to predict the outcome of these negotiations. Enterprises will face serious disruptions if there is a strike. The best advise is to follow the Boy Scout motto which states "be prepared" ... for anything.
- Managers should get all service order requests for Moves, Adds, Changes, and Disconnects (MACDs) in now.
- Expedite all MACD requests. If you have a new facility that is opening, get services installed now. If sites will be closed, get commitments now for AT&T to honor your disconnect dates regardless of their strike status.
- Document the impact of service order requests on billing.
- While network disruptions from strikes are unlikely, enterprises must establish network redundancy plans with other telecom carriers.
AT&T may be able to avoid a strike as Verizon did this past summer, but no one knows how things will work out until the workers vote on the final agreement. This extension is a great bonus for enterprises with additional time to act on getting their affairs organized.
Here is the link to download "Get Ready to Strike". Or download it as a ringtone!
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