4/13/2002

After 24 hours of straight bargaining, a settlement

was reached early this morning on an 18-month Contract

between CWA, IBEW and AT&T. This contract includes

NONE of the retrogressive proposals the company has

been putting across the table in the last few weeks:

No cost shifting for medical benefits or prescription

drugs for retirees or active occupational employees.

No retrogression on termination pay and other working

conditions.

No change in the disability plan.

No raiding of the our Pension Funds to pay for our

termination benefits (like they demanded to in the

original extension.)

No diminishment in the number or function of the AT&T

Resource Center Coordinators.

In addition, we achieved a pension increase of 8 percent

in traditional pension bands and 8 percent in the cash

balance credits plus an interest rate of 5.5 percent

effective July 1. Both of these were an improvement

over the offer made in the company's "extension" offer

(which was an 8 percent increase, not to the bands,

but only for those who retired during the life of the

extension and 5 percent credit in the CBA.) The general

wage increase for those covered under the Operations

Agreement is 2 percent effective May 12, 2002, 2 percent

effective November 10, 2002 and 2 percent on May 11,

2003.

The General Wage Increase for the LNS Agreements is

4 percent effective March 2, 2003 and 2 percent effective

September 7, 2003.

The General Wage Increase for the Puerto Rico Agreement

is $0.65 increase in their hourly wage effective September

1, 2002 and a $0.32 increase effective March 1, 2003.

There will also be a one time signing bonus.

On employment security -- there was an extension of

the process that aids us in returning bargaining unit

work that has been moved to management. A Committee

to review and offer alternatives to all contracting

initiatives has been set up, as well as one targeted

at finding new areas of work for our Operators. A high

level Council has been set up to review company plans

and the Unions needs for employment security and access

to work.

The Union also secured a guarantee that call volume

derived from the $19.95 Unlimited Plan would benefit

bargaining unit employees. We also achieved the right

to perform joint job evaluations prior to the company

staffing a new title and redesigned job titles.

Continued funding of ATS and the ATS Coordinators.

The Union also achieved movement on several key Local

issues including an upgrade in the Pension Bands for

l-titles.

A more detailed report will be out early next week

and information on ratification will be provided soon.