While it reported a $3.2 billion quarterly profit this week and posted overall numbers that beat many analyst expectations, AT&T neglected to provide an update on ongoing contract negotiations with the Communications Workers of America union that affect more than 100,000 workers in the company's wireline unit. Perhaps AT&T thought another quarterly number spoke for them: 4.2 million, the number of landline connections the company lost during the first quarter. AT&T's profit also actually declined for the second consecutive quarter.
However, the CWA issued a press release this morning that reminded the company that billions of dollars in quarterly profit is no disappointment. Keying in on the company's healthy growth engines of wireless and broadband, CWA President Larry Cohen said in the press release, "Broadband and wireless don't exist without wireline. That makes building and maintaining the network a critical part of the company's business plan." The release further stated, "CWA members at AT&T keep the network running."
The union urged AT&T to pursue national health care coverage for employees that it claims can save AT&T $600 million per year. The union said shifting more health care costs to employees will result in some employees seeing a doubling or tripling of their healthcare costs.
- Here's the full CWA press release
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