According to reports, AT&T and its largest union reached a litigation agreement to protect the work of its thousands of technicians.
The report showed that AT&T reached a settlement with the American Communications Workers, the union representing AT&T employees. Bloomberg reports.
The company’s agreement with its largest union aims to protect the jobs of 29,000 fixed-line telephone technicians by 2023. The company also agreed to hire 6,000 customer service employees by 2024.
The agreement also marked Martin Luther King Jr. Day as a holiday for all union members. As of January, AT&T had approximately 85,000 unionized employees.
The American Communications Workers Association believes that the settlement agreement is a victory for the union.
“We are very happy to have reached an agreement with AT&T, and we are very interested in starting broadband construction work,” CWA spokesperson Beth Allen said.
As part of its cost-cutting efforts, the world’s largest telecommunications company has been selling assets and divesting businesses. In June, AT&T issued a layoff notice to its 3,400 employees.
“Redundancies are a difficult decision, and we will not take it lightly,” AT&T said. The company added: “For employees who leave due to these changes, we will provide eligible employees with severance pay and company-provided medical insurance for up to 6 months.” According to business insider.
This move is part of a cost-cutting plan revealed by AT&T CEO Randall Stephenson. Stephenson resigned as CEO in April. The company’s former chief operating officer John Stankey succeeded him and took office on July 1.
In October 2020, Stephenson outlined that the company will eliminate significant costs in the next two years. The plan came true, and the debt-laden company implemented a $6 billion cost-cutting plan, including closing 250 stores.
The company’s goal is to add new fiber optic broadband customers in 2021. This goal means that the company will need more network technicians. The settlement of the lawsuit with the union ensures that AT&T has enough key labor to achieve its goals.
The remaining settlement terms have not yet been disclosed. The company has not yet commented on the matter.
AT&T has launched its mobile 5G network in 12 cities in the United States.
Photo: Getty Images/Kena Betancur
