Bargaining Report 22

December 11, 2005

8:25 PM

The CWA, IBEW and AT&T Corp. reached a tentative agreement today

on a new Contract. The CWA Bargaining Team feels that a lot of

progress was made on the key issues facing our members,

including job security. We were able to hold back the company

assault on the benefits that our members fought so hard for.

These reflect some of the changes in the new Contact in the

National language. Tomorrow we will report on changes in the

Articles. A meeting will be held with the Local Presidents to

explain all the changes and a full bargaining report will be

mailed to each member with the ratification vote.

The Contract expires on April 4, 2009.

WAGES:

December 10, 2005 3.0%

December 10, 2006 3.0%

December 9, 2007 2.5%

December 7, 2008 2.25%

PENSIONS:

"Traditional Pension" Band increases

6.0% effective January 1, 2006

5.0% effective January 1, 2008

Cash Balance Pension Band Credit increases

6.0% effective January 1, 2006

5.0% effective January 1, 2008

Cash Balance Interest Credits:

Effective January 1, 2006, for the duration of the agreement

the interest crediting

rates applicable to the Cash Balance Accounts will be 4%.

JOB SECURITY

A broad range of agreements were reached to protect our members'

jobs. These include:

- An agreement that, prior to an employee being laid off, the

Company must offer a position within AT&T Inc. If a job is not

offered, the employee cannot be laid off.

- A successorship clause

- An agreement to bring a portion of our consumer work back from

the Philippines to our CWA represented locations.

- Approximately 200 Term positions will be made permanent in the

CNSC and there is a new letter prohibiting use of term employees

for permanent assignments.

- Process to return work that was contracted out in the Network

and E.F.I back into bargaining unit jobs.

- Jobs in several different business units (including Business)

will be brought back into the bargaining unit from managers and

subcontractors.

- In Business Enterprise Worldwide Customer Service and Business

Enterprise Sales and Service units the company committed not to

use contractors for a minimum of 6 months after a VTP offer. In

Network Operations, they will not use a contractor doing

essentially the same function for minimum of 4 months after a

VTP offer in a geographic area.

- Card check.

ACTIVE AND RETIRED EMPLOYEE MEDICAL BENEFITS

- No changes in the plan in 2006. No additional out-of-pocket

for the retirees in 2006.

- No premiums shall be charged for the life of the agreement.

Beginning in January 2007:

- There are some increases in Plan deductibles in the

non-network Point-of-service plan; medical co-payments (for

example $20 for each doctor's office visit, $75 for an

emergency room visits (non-admit)); out of pocket maximums, and

prescription drug co-pays.

- There will be a new deductible of $50 for retail prescription

drugs.

- Maintenance medications must be filled by mail order after the

second refill.

There are some other plan changes that will be discussed in the

full bargaining report.

There are other provisions of this that will be discussed in the

full bargaining report.

Alliance will be funded for $10 million a year.

28 scholarships will continue to be funded.

Family Care Development Fund funded at $500,000 a year.

Improvements in the APA.

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December 12, 2005

Tentative Agreement Part 2

These are some of the improvements in the Articles in the New

Contract that were the result of Subcommittee. The Bargaining

Team worked hard to present the demands we received from the

Locals. Many were accomplished, many were not, but a strong

effort was made to get the changes we needed.

- Relocation Pay was increased to a minimum of $7000 and

maximum of $13,000 for those covered in Article 16 and 24.

Article 5

- There is a letter for a trial on Union representation during

"coaching" sessions.

Article 20

- The company clarified that step-parents, step-grandparents,

step-children, step-brothers and step-sisters are covered under

(1) under the death or funeral language.

Article 21

- EW Days can be taken in one-hour increments if there is a

Local agreement, negotiated annually.

Article 22

- Vacation days can be used in half-days (selected after the

vacation pick) if there is a Local agreement, negotiated

annually.

Article 34

- The termination schedule is now the same as Article 25.

Article 35

- Employees in the CSSS-C title (Reynoldsburg, Ohio) will be

moved to the CSSS title.

- Employees in the CSSS title will be grandfathered for the

CSSS-C "Sales Simulation" Test.

- Negotiations regarding a sales related incentive plan for the

CSSS title in AT&T Classic Services will resume within 60 days.

- The Metro Segments Compensation Plan was modified to delete

elements no longer applicable.

Article 39

- A day was added to paid funeral leave.

- Evening and night differential were added.

- Improvement in termination pay.

Article 41

- The language covering managers doing tech work was changed to

remove any references to "outside of their assigned tours" and

impacting overtime.

Article 43

- The language covering managers doing tech work was changed to

remove any references to "outside of their assigned tours" and

impacting overtime.

- IDC(G) and NTS(G) continue all of their grandfathered Article

41 language plus shifted tour differential.

Also: As part of the jobs security package for Article 43:

o Watermark: 2006 - 1000; 2007 and 2008 - 900; 2009 - 800.

o Variable Workforce Agreement: The Company will meet with

the Union January 30 and then quarterly. If the records reflect

that contractors are doing full time, ongoing work in the

proceeding 6 months these positions will be filled with

full-time, regular employees.

o A negotiation will begin immediately between the Company

with EF&I vendors to use AT&T employees to do the installation

work. Depending on the success of those negotiations and the

availability of our technicians our members will do the work.

This will be reviewed every 6 months.

o The company may not let people go using VTP and bring in

contractors to do the same or similar work for at least 4

months.

CNSC now new Article 44

- All term employee position will be converted to regular full

time positions.

- An additional wage increase of .5% the first year at all

levels of the wage progression.

- The CNSC is being rolled into the regular contract. Not all,

but most of the "white pages" will apply to members in the CNSC.

- Double time for overtime after 8 hours.

- Improvement in the termination pay schedule.

- Improvement in some temporary transfer language.

- Arbitration rights after 9 months instead of 12 months.

LNS (Mesa, AZ and Orlando, FL) now new Article 45

- Moved into the core Contract with Orlando language and

Pension band improvement for Mesa, AZ.

- Layoff language improved:

o Surplus declaration window increased to 60 days

o recall from 2 to 3 years

o 3 groups to 2 groups for layoff

As stated above, other changes and additional explanations of

these changes will be provided to the Local Presidents at the

Contract explanation meeting on Saturday. Also you will be

receiving them in the Bargaining Report accompanying your

Contract Ratification ballot.

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