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AT&T Negotiations Update

November 30, 2005

Negotiations today centered on Successorship Contract language and Special Social Security Supplement.  On November 3, IBEW and CWA submitted a Successorship Proposal which protected the unions and their active and retired members.  If the new AT&T Inc. sold, conveyed, transferred, leased, assigned to, consolidated or merged any of its business enterprises with any successor, that successor would have assumed all of AT&T’s obligations under the Successorship Clause Agreement.

The company countered the unions’ proposal today with a watered-down proposal.  The unions rejected the company’s counter proposal as being weak and insufficient.

The Special Social Security Proposal was a counter to the unions’ proposal of November 10, 2005, covering designated eligible employees who were or will be involuntarily terminated under a force adjustment program.  The parties are still apart on both issues.