News

AT&T's first quarter 2009 profit beat expectations because of strong growth in video and data services and wireless, keeping the company on track for continued solid gains. That was the consensus of industry observers, analysts and the company's top executives. "For this economy, it was an outstanding performance," one analyst commented.

That's also the conviction of the Communications Workers of America, and today's earnings report reinforces the fact that AT&T is well-positioned to lead the telecommunications industry into the future digital age. AT&T also is well-positioned to help move our nation out of economic crisis and back into prosperity. If successful companies like AT&T don't step up in this economic recession, and instead hide behind it to force more cost shifting to workers, how will our economy recover?   

CWA President Larry Cohen pointed out that AT&T's strength is its integrated network. "Broadband and wireless don't exist without wireline. That makes building and maintaining the network a critical part of the company's business plan." CWA members at AT&T keep the network running. 

AT&T remains the 7th largest company in the world, in terms of market capitalization. It posted $12.9 billion in profits last year.

AT&T has recognized that competitive product bundling is key to its success – especially broadband and wireless bundling – and these packages don't exist without wireline. And as new services come on line, these will be further integrated into the package of AT&T telecommunications connected through the wireline network.

Since 1983, CWA and AT&T have negotiated path-breaking health care cost containment and cost sharing agreements. This year, we have the opportunity to continue to work together for real health care reform. This is a much better solution than a short-sighted approach based on increased cost shifting.

First, national health care coverage will save AT&T some $600 million and will increase shareholder value by $5 billion at AT&T's current price-to-earnings ratio.

Second, this is the next logical step in CWA and AT&T's long history of working together on controlling health care costs. Today, with the U.S. spending twice as much of its GDP as other developed nations on health care, the need for change couldn't be clearer. Workers and management must together make health care reform happen. AT&T should be a leader in the effort to counter those employers that now refuse to provide any level of benefits for employees.

Shifting more costs to workers – doubling or tripling their costs in some cases – is a poor solution. Working toward a national plan – one that has all employers paying their fair share – is the financially sensible approach.

CWA and AT&T currently are in contract negotiations for new contracts covering nearly 100,000 workers.  All along, CWA has made it clear to AT&T that workers want fair bargaining and fair contracts.



A message from AT&T Employees:

http://www.cwa-union.org/wearethenetwork/