Questions and Answers s5

Questions and Answers

Please note: While all questions are reviewed, only representative Q&A will be posted on the Web site. Specific questions cannot be addressed in this forum.

Questions and answers added May 13, 2009

Q13: Can you explain how the calculator for the CWA District 6/Southwest region final offer determines wage increases? A13: Please see the help file within the employee calculator for a detailed explanation of the calculations. Calculator link

Q1: Will AT&T still offer lump sum pension payment in the new contract for all eligible employees with 30 or more years of service? – LB; Tucker, Ga. A1. In the final offer presented to CWA District 6/Southwest Region, employees will continue to be able to take a lump-sum pension payout upon retirement.

Q2: So, if District 6 doesn't accept the contract, what will the Company do? – RG; San Ramon, Calif. A2: It is our hope that CWA District 6 will take this proposal to the members, and give them the opportunity to vote on it. We’re optimistic that the employees will find this to be a fair offer and approve it.

Q7: The contract proposal [to CWA District 6/Southwest] doesn't even mention what happens to TFT's?!? Am I looking for work or employed? Enlighten me please. – CD; St. Louis, Mo. A7: The offer to District 6/Southwest does mention TFTs. In response to union requests, the company offer agrees to the conversion of most Southwest Core wireline temporary employees to regular employees. These converted employees will receive the same medical benefits as other regular employees, a cash balance pension and access to post employment benefits at cost.

Questions and answers added April 14, 2009

Q: What are the ramifications for an employee who does not want to participate in the strike, should one be called for? – MB; Southfield, Mich. A: There are no penalties from AT&T if a bargained-for employee makes the personal decision to work during a strike. There may be ramifications from the union – but that is a question for the CWA to answer.

Q: If an employee is not a member of the union and there is a strike, will it be safe for him or her to turn out to work and not be harassed by other striking employees? – JB; Houston, Texas A: This is a personal decision and you have the right to work during a strike. The safety of our employees is always a priority. Questions and answers added April 9, 2009

Q: What will happen to our insurance and dependant coverage if we strike? – JR; Cerritos, Calif. A: The company has the right to stop providing health insurance for striking employees and a decision will be made about that in the event of a strike.

Q: If there is a work stoppage from the union members, what will happen to the vacations and personal days scheduled during any work stoppage by the union members? – AJ; Brecksville, Ohio A: Generally, from a company perspective, in the event of a strike, if you are not at work you will not be paid – and this includes paid vacation time and personal days scheduled during this time. For specifics, employees should talk to their supervisors to determine how a strike would affect previously scheduled vacation time.

Q: Is AT&T ready for a strike? – no name given; Texas A: Yes, we are prepared for a potential strike. While we do not believe a strike is in anybody’s best interest, as a responsible, customer-oriented company, we must plan for all possible outcomes to these negotiations. Under our extensive planning efforts, managers and retirees have been trained to continue offering service to our customers. That training is nearing completion, and managers are prepared to move into their new roles immediately, should that be required.

Q: During contract negotiations, how is it determined what issues go to arbitration? – BS; St. Louis, Mo. A: The wireline contracts do not have any provisions for arbitration in the collective bargaining process. The goal is to reach a fair agreement on a timely basis and the parties themselves will need to do so at the bargaining table.

Q: Will we be able to keep lump sum pension? – LS; Little Rock, Ark. A: The availability of the current lump sum pension benefit is one of the benefit issues being negotiated at the bargaining table.

Q: I have heard from several unofficial sources that there is a 14-day "cooling off" period in which the union employees may not call a strike. Is that accurate? If so, does that mean the first day of a potential strike would be April 19, rather than April 5? – DM; St. Louis, Mo. A: No. The union may call a strike at any time after the expiration of the current agreements. Questions and answers added April 1, 2009

Q: If the company really wants to save money, how about doing away with the cost of monitoring with GPS? A: The Company is constantly evaluating ways to control costs. GPS is a way to help our employees be more efficient, and in turn, this technology helps save money.

Q: There is a 30-day intent to strike clause in the current contract. Has this intent been given by the union? If no, will notification of this intent be communicated if and when it is exercised? A: Currently, there is no such commitment by the union to give any notice of any intent to strike. In the event of a work stoppage or other significant bargaining event, the Core Bargaining Web site (www.att.com/corebargaining) will be updated.

Questions and answers added March 30, 2009

Q: If the CWA does decide to strike due to no contract negotiated by April 4, does the inclusion of CWA District 3 mean that it would also strike as well on the same date? – GF; Tallahassee, Fla. A: While an agreement with District 3 was reached to bargain at the same time as the rest of the Core contracts, they remain under the provisions of the agreement in effect until August 2009 – which does not allow them to strike prior to the expiration of the current agreement.

Q: Will employees that retire in 2009 have an option between their old contract or the new contract if they retire prior to December 31, 2009? – JP; Tucker, Ga. A: Once the collective bargaining agreement is ratified, it takes effect for all employees covered by the agreement. If you retire prior to ratification, you would be covered under the old contract.

Q: Will our new contract mirror Verizon’s contract? – CM; Escanaba, Mich. A: No, each contract stands alone based on the specific circumstances, economic situation and priorities for each party. Verizon has chosen to exclude the union from wireless, which is one of the highest growth areas in telecommunications. Verizon's enterprise business operations are largely non-union as well. AT&T has embraced union representation in growth areas by partnering with the unions on agreements that allow for new jobs in competitive areas with competitive wage and health care packages. The competitive landscape that the company finds itself in – complicated by the economy’s dramatic turn for the worse – has affected our wireline business, productivity and profits. Click here for more information. Q: From what I've heard, AT&T wants their employees to pay $200 a month for our insurance and that would have a $1,500 deductible. Is this true? – CM; Tustin, Calif. A: We have no such plan with these combinations. AT&T stands by its commitment to offer generous medical care subsidies to its employees. The proposals we are presenting at the bargaining table are in line with recent CWA labor agreements with other bargaining units. We believe what we are offering is very fair and reasonable, and remains among the most generous in the U.S.

Q: What are the lengths of the contracts that are being re-negotiated? – MS; Alpharetta, Ga. A: The terms of the currently negotiated labor agreements are in effect for five years. The duration of the new agreements will be determined at the bargaining table.

Q: If the company really wants to save money, how about doing away with the cost of monitoring with GPS? A: The Company is constantly evaluating ways to control costs. GPS is a way to help our employees be more efficient, and in turn, this technology helps save money.

Q: What happens to our medical coverage if there is a work stoppage? A: It is premature to discuss employee’s continued benefits in the event of a work stoppage. Q: Are U-Verse employees, specifically Premise Technicians, included in the AT&T Core Contract? A: Premise technicians are included in the current negotiations.

Q: What is the total number of employees covered by the Core wireline contract – for the East, West, Southwest, Midwest and Legacy T? – SH; Dallas, Texas A: The contracts affect about 110,000 Core (wireline) employees from across the country, from all of the CWA-represented legacy companies that make up AT&T. Under a special agreement between the union and the company, this also includes the labor agreement for employees in CWA District 3, the former BellSouth area, even though that agreement does not expire until August.

Q: Why does the bargaining committee feel it necessary to keep negotiations so secret? – RH; Holland, Mich. A: Focusing on negotiations at the bargaining table shows a respect for the process and, in our experience, it is there where solutions are found. Any agreements reached at the bargaining table will be presented to the union membership in full – and as appropriate, the Company will provide updates at www.att.com/corebargaining.

Q: How often will the [Core] bargaining Web site be updated? – TM; Richardson, Texas A: AT&T will update this Web site regularly and visitors are encouraged to check the site periodically for current information on the status of negotiations. This may not necessarily be on a daily basis, but will be done as frequently as developments warrant.

Q: What is the difference between a work stoppage and a lock out? – SM; Hayward, Calif. A: There are different types of work stoppages. A lock out is a management- directed work stoppage, as compared with a strike – which is a union-directed work stoppage.

Q: Where can I view the standing contract for SBC that includes AT&T Advertising Solutions? – AS; Charlotte, N.C. A: Accessible from the AT&T network only, all Advertising & Publishing labor agreements can be viewed here.

Q: Will the CWA bargaining set the mood for IBEW? – PJ; Chicago, Ill. A: The IBEW labor agreement is a separate agreement, as are the bargaining processes for that agreement.

Q: Will there be specific language in the new contract to include term employees? – EC; Charlotte, N.C. A: Term and temporary employees covered by the CWA Core labor agreements are part of collective bargaining agreement and may be discussed in these negotiations.

Q: If AT&T Mobility is driving growth, how come they can't get a fair contract? – various employees; no location given A: On Tuesday, March 3, bargaining teams for the company and the Communications Workers of America reached a tentative agreement on a collective bargaining agreement covering employees working under the Mobility Orange contract. Terms of that agreement have been released by the CWA and we have updated www.att.com/mobilityorange with a summary of the deal and a wage calculator based on the tentative agreement. This is a fair contract — both in terms of the compensation and workplace opportunities it provides the covered employees, and in the flexibility it allows the company to meet the increasingly aggressive competition and challenging economic times we are seeing in the marketplace today.

Q: Is it possible to extend the current contract? – AL; Bedminister, N.J. A: We are working diligently AND FULLY EXPECT To reach an on-time agreement FOR all Core labor agreements.

Q: If AT&T is looking to shift health care costs to our retirees, how can you justify $33.5 million in compensation to your top five execs, who also have extremely generous pension benefits and free lifetime health care? – various employees; no location given A: AT&T provides competitive compensation and benefits, including health care coverage, at all levels. No active manager at AT&T has free lifetime health care. All managers from the CEO on down, make significant and similar contributions toward their health care coverage.

Q: Do you actually answer any questions? – AM; Austin, Texas A: Every question submitted to the AT&T Core Bargaining Web site is reviewed and representative questions are selected for posting. Some questions are not appropriate for response at this time since we are currently in negotiations.

Q: If a non-employee acquaintance asks me questions about these negotiations, does AT&T have a public webpage that I can direct them to for information? – DH; Hoover, Ala. A: This Web site – www.att.com/corebargaining – is a public Web site. It is accessible from any computer or device with Internet access and is available to any interested parties, including all employees, management and non- management.

Q: Under the special agreement, is Legacy BellSouth contract also expiring on April 4, 2009? Will we be obligated under the same terms of any new contract? Will we be able to vote to ratify the new contract? – PS; Montgomery, Ala. A: The Legacy BellSouth contract covers the Southeast region, or District 3. While an agreement was reached to bargain at the same time as the rest of the Core contracts, the District 3 contract does not expire until August 2009. The Southeast region will be given the opportunity to ratify the new contract and will be covered by the terms of the new contract. Questions and answers added March 3, 2009

Q: I was just curious as to why we wait so long to begin bargaining? We only give ourselves about one month to negotiate, when it seems like we could start earlier. – ST; Dallas, Texas A: The start date for bargaining was mutually determined by AT&T and the CWA.

Q: Why is health care a major issue? – GC; Atlanta, Ga. A: Our main health care objective is to offer high-quality, cost-effective health care coverage that is valued by our employees. AT&T subsidizes health care coverage for more than 1.2 million people – active employees, retirees and dependents – at an annual cost of $5.5 billion. These health care costs continue to increase at a rate that outpaces inflation, and in fact health care costs have doubled over the last 8 years. From a national perspective, Americans spent $1.7 trillion for health care in 2007 – exceeding the nation spending for housing, food or energy. In view of these numbers, it is not surprise that only 65 percent of U.S. business now subsidize health care for their employees.

Q: Is moving between regions going to be discussed? – IS; Indianapolis, Ind. A: In general, this contract addresses the full range of issues from wages, benefits and pension to work rules. Work rules may include movement of employees.

Q: Will we be able to see what AT&T is offering before a strike? – JH; Dallas, Texas A: It is our intent to keep you informed about developments at the bargaining table.

Q: What benefits do AT&T employees receive? A: AT&T benefits are quite comprehensive, and include things like medical, dental, vision, 401(k) and/or pension, life insurance, and much more. Q: What is the current state of health care coverage for our union workers? – SS; Bedminister, N.J. A: AT&T non-management health care plans are among the most generous and highly subsidized in the U.S., and richer than anything offered by our competition. Questions and answers added February 27, 2009

Q: Will there be one contract for all of AT&T or three contracts – SBC, BellSouth and Legacy AT&T? – RC; Atlanta, Ga. Will these negotiations cover IBEW also? – JM; Hoffman Estates, Ill. A: AT&T has more than 50 union contracts and the company is almost always bargaining one or another of those. The negotiations that opened Feb. 24 are for Core wireline employees represented by the CWA in the East, Southwest, West and Midwest regions, as well as Legacy T Core contract employees across the country; those contracts all expire on April 4, 2009. CWA Southeast also chose to join in this bargaining, although that contract does not expire until Aug. 8, 2009; the Southeast employees would continue to be bound by the Aug. 8 expiration date. The IBEW contract covering about 10,000 employees in the Midwest region does not expire until June 27, 2009, and will be bargained separately. Core bargaining also does not include many other contracts such as Internet, Video and Mobility which have distinct contracts and are also bargained separately. There is no plan to combine any of the contracts.

Q: Is the bargaining between the CWA and AT&T Mobility separate from the AT&T Core contract negotiations? – KR; San Ramon, Calif. A: The Mobility Orange contract is a separate and distinct contract and the bargaining processes are totally separate.

Q. What is the bargaining schedule? A. Bargaining will open on Feb. 24, 2009, with the contract expiring at 11:59 p.m. on April 4, 2009.

Q. Who is bargaining on behalf of the company? A. As is customary, we have a team of Labor Relations professionals who are bargaining on behalf of the company.

Q. How will you keep employees informed on the progress of negotiations? A. With the beginning of bargaining, we are launching an Internet Web site www.att.com/corebargaining that will provide updates on bargaining as necessary. Note that this Web site is on the Internet so you can access it from any computer. Q. What areas and employees are affected by this bargaining? A. This bargaining involves 110,000 Core (wireline) employees across the nation from all of the union-represented legacy companies that make up AT&T.

Q. What sort of work do these employees do? A. These employees are in wireline operations in both network and call center roles. Q. What are the issues? A. This contract addresses the full range of issues from wages, benefits and pension to work rules.