About 17,000 AT&T Inc. (NYSE:T) unionized employees in Nevada and California are threatening to down their tools to press for better wages and healthcare benefits. They are also calling on their employer to stop outsourcing jobs to nonunion workers. The protest scheduled for April 9 will be marking a one-year anniversary of the ending of their contract with the union.
But AT&T is under pressure to cut costs in the shrinking telephone business
The carrier says it has to cut costs by all means and one of them is by outsourcing jobs. However, the striking employees, the majority being technicians and call center workers may not understand this.
Apparently, the contract of close to 21, 000 workers who belong to Communications Workers of America (CWA) expired in February. The union representing the workers claims that there has been very little progress if any into the negotiations to have it renewed. It will not be the first time that the employees will be going on strike over a contract. In 2012, they did so but it lasted only for two days.
Relations have been fraying between AT&T and the worker’s union
The two parties have been locked in protracted negotiations over several issues the main one being the renewal of their contract. Surprisingly, AT&T has been sending call center and customer support jobs overseas perhaps because of the rag in the negotiations and the union is not taking this kindly.
The employees and the union are aggrieved as one of AT&T union members, Armando Zepeda explains, “We are emboldened by our successful strike and we will do what it takes to settle our contract.”
However, AT&T says, it has incorporated all demands by its employees in the latest negotiations including an increase in the pension benefit. On the healthcare plans, the carrier explains that it is similar to all employees across the board. The showdown by the AT&T employees is not anything new within the telecommunications industry.
Verizon Communications Inc. (NYSE:VZ) has had its unionized employees strike for higher pay and job security, which they eventually were given. The CWA now says it will be ramping up efforts to unionize workers at T-Mobile US Inc (NASDAQ:TMUS). In the meantime, AT&T’s stock closed at $41.51 a decline of $0.17 or 0.41%.