In contract proposal promptly criticized by CWA as ‘long on rheto...

concerns, citing Feb. 6 AT&T letter to CWA officers that “indicated that there would be further reductions in both union- represented and management jobs for 2002,” CWA said. Current contracts expire May 11 and offer would extend them until Nov. 2003. AT&T said offer was designed to provide stability in wages and benefits for employees “until the economy and the telecommunications industry show signs of improvement.” Besides wage increase over 18 months, AT&T said proposal included: (1) 8% pension increase for employees retiring between now and end of extension. (2) Immediate increase in separation payments of 10%-500% depending on years of service. (3) Continuation of free employee and retiree medical coverage for length of extension. CWA Vp Ralph Maly said proposed contract extension failed to meet “workers’ concerns about jobs as the company moves ahead with its breakup.” AT&T said increase in pension and separation payments alone would be equivalent to one year’s annual salary for “long-term employees.” Along with benefits now given to long-term employees, new separation payments plan would be close to 3 years pay for those with 30 years of service. For 13,000 union members who have fewer than 6 years of service, proposal would increase separation or pension payments by $3,000, AT&T said. But CWA said: “Pension and wages increases -- the only items addressed by AT&T’s extension proposal -- don’t mean much when you don’t have a job.” Union raised concerns that proposed termination benefits would amount to “raid on workers’ pension fund.” Pension plan would be used to make severance payments to employees, “instead of using operating budget funds as is currently required,” CWA said. Union said it had offered to begin bargaining immediately, instead of waiting for scheduled opening of contract talks March 11. Union said it had continued to raise concerns with company about job losses. “Today’s proposal suggests that the company would like to avoid serious labor issues while it’s finalizing the deal with Comcast that it expects to complete by the end of the year,” CWA said.