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Posted: Wednesday, 15 July 2009 1:55PM
AT&T, union reach tentative contract deal
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NEW YORK (AP) -- AT&T Inc. and its largest union have tentatively agreed on a new contract for 18,500 employees in the Midwest.
Leaders of the Communications Workers of America, which has gone three months without a contract, reached the deal after nearly five months of negotiations with AT&T. Union members will vote on it in the next few days.
The Dallas-based phone company is still negotiating with the union in four other districts and will start on a fifth one soon. Together, those talks cover nearly 100,000 workers. In addition, AT&T is negotiating with the International Brotherhood of Electrical Workers in the Midwest, representing about 8,900 workers.
AT&T spokesman Walt Sharp said the proposed three-year contract with the CWA district covering Michigan, Illinois, Ohio, Wisconsin and Indiana provides for wage increases of 3 percent for each of the first two years and 2.75 percent for the last.
The CWA said the deal ``safeguards'' health benefits, which had been a sticking point in the talks. Sharp said employees ``will be assuming some responsibility for costs for premiums, deductibles and coinsurance.''
``I am pleased to have reached an agreement that achieves our key goals,'' CWA District 4 Vice President Seth Rosen said in a statement.
The workers are in AT&T's wireline business, which has been shrinking, in contrast to the growing wireless business.
AT&T shares were up 39 cents, or 1.7 percent, at $23.84 in afternoon trading.
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Copyright 2009 by The Associated Press. All Rights Reserved.
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