AT&T said it reached tentative agreements with the CWA and the In...

contracts in the U.S. and Puerto Rico, calls for across-the-board wage increases totaling 5.75% in 4 steps over the 2 years, a 5% increase for both defined benefit and cash balance account pension plans, and improved subcontracting committee provisions, the CWA said. It said the settlement extended the current contract, which was to expire Nov. 8, through Dec. 10, 2005. Among job security improvements, AT&T agreed that layoffs shouldn’t result from subcontracting of work, the CWA said: “This applies beyond the specified ‘geographical commuting areas.'” The parties also agreed to negotiate new union-represented job categories for supporting business clients’ computer hardware. CWA Vp Ralph Maly, the union’s chief negotiator, said AT&T had requested the early negotiations, and it was agreed from the beginning that the company wouldn’t seek any contract concessions. He said it was “important… that we protected all contractual rights,” including “health care for active and retired workers, pensions and severance protection.” The CWA also said it would start regional negotiations with Verizon June 23 in N.Y.C. for workers in N.Y. and New England, and June 26 in Washington for workers in the mid-Atlantic region. CWA Pres. Morton Bahr said he was “optimistic” that a “fair settlement” could be reached before the current agreement, which covers about 60,000 CWA members, expires Aug. 2. The CWA said its key bargaining goals were: (1) The preservation of quality jobs. (2) Access to jobs in the new growth areas of the company. (3) Improvements in pensions. (4) A wage increase. “We don’t want to see service quality suffer because of a lack of investment in plant and equipment and skilled workers, and that’s exactly what has been happening,” Bahr said. He said Verizon cut investment 39% last year: “Ignoring and cutting back on needed repairs affects quality service, as we've seen in the New York region and elsewhere.” However, the CWA said, Verizon’s productivity level was “more than twice the national average,” and the company was “still leading the [telecom] industry or near the top in a number of indicators.” Verizon began separate contract negotiations with IBEW in New England Mon. (CD June 17 p5).