AT&T Inc. (NYSE:T) union employees have approved a new deal with the telecommunication company, marking the 16th consecutive deal that has been approved by the company.
Roughly 2,000 unionized AT&T workers took a vote on a deal that the company presented to the union. The deal was approved thanks to a 54% vote in favor of the deal while 45% voting against it. The Communications Workers of America Union revealed that one of the reasons the deal was voted in is that it supports significant wage gains.
Rival firm Verizon Communications Inc. (NYSE:VZ) faced a strike from union workers earlier this year and the union managed to secure a deal that includes improved job security and better wages. Earlier in August, about 40,000 union workers posted in AT&T’s wireless business ratified a four-year benefits agreement which is the first time that a major contract has been approved by telecom workers since the Verizon strike.
“AT&T has agreed to 19 contract deals with the CWA and International Brotherhood of Electrical workers since the beginning of 2015,” pointed out AT&T in a statement.
The newly approved contract will last for three years, after which the officials of the union and the telecommunications company will meet to discuss new terms. Working on the agreement was not easy. The union workers voted in favor of a strike in July after the company presented a proposal to freeze wages for three years. It has also opted to increase worker contribution for health care coverage. The company eventually had to compromise on the wages.
The terms of the deal indicate that there will be an increase in general wage, especially for the lowest ranked employees. The lowest paid workers will get a wage increase of between $5,000 and $8,100 through the three years of the contract. The rest of the workers will receive a 7.7% wage raise over the three years.
AT&T stock closed the latest trading session at $36.79.
