No apparent contract movement from AT&T, union

Most media reports from this weekend show no discernible movement toward a new contract agreement between AT&T and the Communications Workers of America union. A strike has been authorized, but the CWA appears no closer to calling one, an action that it took about five years ago when the two sides failed to reach a contract agreement. However, as has been frequently noted, the wireline unit whose workers are affected by the contract negotiations is not the engine of AT&T's success that it once was.

Gerson Lehrman Group, in analysis released last Friday, said that AT&T CEO Randall Stephenson, in comments published in The Wall Street Journal, reiterates the importance of mobility operations to AT&T's future, which implies that wireline and especially wireline-centric service bundles are less important.

Meanwhile, health care costs remain the central stumbling block toward an agreement. AT&T continues to note that it needs to bring employee-paid health care costs more in line with company-wide and national averages. The affected AT&T employees currently pay only about 8 percent of their health care costs annually, the company says.

For more:
- Here's the analysis from Gerson Lehrman Group
- The St. Louis Post-Dispatch reports on contract issues

Related articles
AT&T said last week that it was offering wage increases
Special Report: The CWA and AT&T contract negotiation saga
CWA, AT&T square off on health care
AT&T labor contracts expire, CWA members report to work "for now".
CWA and AT&T "very unlikely" to come to agreement before deadline
CWA exec board green-lights strike authorization
CWA members authorize AT&T strike if contract talks fail
CWA, AT&T disagree on use of "passed" in April 1 contract negotiations
CWA, AT&T 'Far from agreement' on contract negotiations

Suggested Articles

LF Edge, an umbrella organization that's part of the Linux Foundation, announced the second release of its Akraino Edge Stack.

Chris Young is leaving his role as CEO of cybersecurity firm McAfee to become a senior advisor with TPG Capital, which has a majority stake in McAfee.

CenturyLink wins a $1.6 billion contract with the U.S. Department of Interior to upgrade its network services and modernize its IT solutions.