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IBEW, AT&T iron out three-year contract
Source: Fierce Telecom
Date: 10/01/2009
In the latest happening in the ongoing saga between AT&T and its union-represented employees, the International Brotherhood of Electrical Workers (IBEW) voted to ratify a three-year labor agreement with the incumbent carrier. The new agreement covers more than 8,000 wireline employees that work for AT&T in Illinois and northwestern Indiana.
Under the terms of the new contract, employees will get a 3 percent salary increase during the first two years of the contract; a 2.75 percent increase in the third year; and 2 percent pension contributions each year. Additionally, AT&T could offer a cost-of-living raise in the third year of the contract. The one wrinkle is that employees will have to continue paying for their health care benefits. However, AT&T will cover 100 percent of preventative health care costs and offer a health care reimbursement to eligible employees.
The union and AT&T have been working to develop a new contract since February. To date, AT&T says it has reached a tentative agreement with approximately 60,000 wireline union employees.
