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Ovum: Possible CWA strike won't affect AT&T capex

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Ovum analyst Ron Klein says a potential strike by the Communications Workers of America (CWA) wouldn't affect AT&T's short term capital expenditures. If anything, AT&T will likely press to reduce health care costs given the current state of the economy.

The CWA is the largest labor union within AT&T, representing around 110,000 workers. Current contract negotiations are the first in five years and the first since the mergers of AT&T, BellSouth, and SBC. Klein says the balance of power has "shifted" to the company this time around, and management employees on the wireless side have been trained to fill in should a strike occur. 

Regardless of any work stoppage, Ovum believes AT&T optical spending will be lower in the first half of 2009 than the first half of 2008; the company had already started pulling back optical spend in the second half of 2008.

However, a prolonged (more than 3 months) work stoppage could be "more harmful" to optical vendors and AT&T's wireline vendors, including Alcatel-Lucent, Cisco, Ciena, Fujitsu, Juniper and Nokia Siemens Networks.  A longer strike could also hurt enterprise sales because AT&T would have difficulty providing competitive responses and completing installations in a timely fashion.

For more:
- Ovum predicts AT&T capex spend will go on. Post.

Related articles
AT&T workers protest in Connecticut
AT&T union talks affecting 112,500 proceed

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Comments (13) | Post a comment
More stories about Telecommunications Equipment   strike   labor relations   Enterprise Sales   CWA   Communications Workers Of America   Capex   AT&T  

Comments

pots lines may be dropping off. but dry dsl lines and data lines are growing everyday. the customers are suffering because of at&ts mentality. they do not care about customers service just how they can fire employees.they wont let us fix things just patch them

I have to agree. The "new" at&t has much to learn about management. I have been there over 10 years and when I started, employees hardly ever spoke ill of the company. Today it's difficult to find anyone with a good word to say about how they treat their employees, and I have seen why first hand. I am working in a crew of 7 that was 14 just a few years ago, and we are doing twice as many jobs as we did then. I hardly have time to re-stock my truck, let alone order my own supplies and take care of my own payroll! I have never seen such a fear-based management style like this tear down the morality of it's employees so quickly!

Mismanaged from the top to the bottom, this company will fall apart in less than 3 yrs if they keep going at the rate in which they are right now. Customer service has fallen off, people are waiting days just for service restoral, orders, well good luck they are all wrong, surplus c.o tech's, yeah that was a great idea, no we have ds1 hubs with no one in them, the only thing they are worried about is cutting jobs, pay and benefits. Thanks alot AT&T......

People need to understand that the network is the wireline side if At&t did not have the core wireline circuits there would not be a wireless phone or uverse tv. I work in a AT&T central office and rarely touch a phone line and 10 years ago it was the same way accept we had 8 people now we have 3 and we are slammed all day long. The amount of knowledge required on a daily basis to do my job at a pace they want it done is very stressful and now they saying they want me to take less for my efforts! Wireline is AT&T without it all these new technologies would be worthless! I refuse to downgrade my lifestyles so Randall can get a pat on the back from the board. Bring it on AT&T the CWA is ready for the fight!

bring back ed lets outsource randall ..its time to say no to evil ceos

All legency corparations face the same problem in this new capitalism.The reaganomics business model is to raid health accounts,pensions ,and have low reserves.The emphisis is not about profit but beating the market expectations.With absolutely no regard for the wellbeing of the worker,their expectations will always result in higher prices,lower wages,and reduce benefits.Health accounts and pensions funds should be channel to the market.These new accoutants have even convinced congress to allow their pay to be taxed different that other income.In order for companies to put the correct economic value on its employees,we need to get congress to go back to the laws that encourages companies to be good corporate citizen.The country has seen how allowing the market to control the prices,wages,benefits and taxes have nearly destroyed the American coporation and the stability of the average American.I believe our main focus should be to get Congress to bring back proven laws and regulations that will not encourage companies to leave a great potion of the worker welfare to the government but will allow him and his family to enjoy a rewarding life.

Ladies and gentlemen- none of us make $45 an hr-the company made 12.9 Billion last year. I realize the economy of the country is in a recession- at&t had the foresight to compete in the wireless arena, expand into broadband and video services-- all of these services use the wireline network to operate. (yes even cell phones)Until they come up with a reliable wireless system to replace the wireline network it will still need to be maintained! The phonemen that did maintain the lines are the same ones, only now we maintain more circuits for data than plain old telephone service. Basic Union philosophy--if the company is doing good (and they are) we would like our little slice of pie! if however they would be in trouble then we know consessions would be in order. please hope for a good outcome on this, some of us are still proud of providing good customer service where it is needed!

This may be right about AT&T having revenu quater by quater but the CWA are only taking care wireline market wich is decreasing every queater why would you want to spend more money in the business that decressing. also with the way economy is how would let go a job that making $45hr.

You don't hear anything because NOBODY CARES. There are 1 in 10 people out of work, and that's the story you hear about. Not a bunch of crybabies with a job, threatening that they'll stop going to the job they already have.WHO CARES ????? !!!!!!!! I bet LESS THAN 1 IN 10 !!!!!!

Can someone tell me if there is a strike or not ?Why the silence concerning all this---New York City and New Jersey news radio have nothing on their newscasts concerning the CWA and AT&T. It does not surprise me because the news media is part and parcel of the corporate establishment---dare they say something===the stock market would go into a tizzy !!!!!

when a company post the type of profits they have year after year and the employees having to see those profits, the employees are getting driven threw the wall to produce with less and produce more, the employess haven't had a substation increase in wages or benifits in over 20 years, not one cost of living adjustment, the raises they have gotten have been minor at best, and with what things cost today with fuel, groceries, heating and cooling, out of pocket expenses on health care the empolyees have went backward, they are the backbone of AT&T wheter the company wants to admit it or not,they are the people that has made AT&T what they are today and made them profitable even in the times when the economy has been bad. It would make people sick if they knew what the CEOs where making and the bonus's and perks they get even in these "hard" times as the company puts it, when AT&T won't even agree to raises and job sercurity and better health care for their employees that have gotten them to where they are today.

When is it enough profit? In 2007, AT&T netted 12B, in 2008 they netted 13B--yet they "claim" they couldn't even afford raises (no manager got a raise this year).
Will they use the economy "excuse" again with the union? How about setting a corporate example for the world and put the employees welfare ahead of making the "extra" profit. When is enough, enough?

Get on strike already!!! It's time to show the company cwa and ibew mean business when they are trying to screw the membership!!!

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