Questions and Answers - AT&T



Questions and Answers

QUESTIONS AND ANSWERS ADDED JULY 1, 2008

Q.  What about the reports that the company is asking for a 400 percent increase in our contributions toward our health care? That just doesn't seem fair.

A.  The Company and the Union have agreed to a process  designed to ensure an agreement is reached without a disruption to the lives of our employees and their day-to-day mission of serving AT&T Mobility customers.  That process began with bargaining and includes mediation and arbitration if the two parties don't come to an agreement by June 30.  This process also ensures an agreement will be concluded before the current benefits expire on Jan. 1, 2009, and that employee benefits will not be interrupted. 

 

The Company received an initial health care proposal from the CWA on June 3 proposing a large reduction in what employees pay today.  Under this CWA proposal, employees of AT&T Mobility’s competitors would pay about six times more for their personal healthcare than our employees.  AT&T currently subsidizes employee health care costs at approximately 90 percent while our competitors are subsidizing these same costs in the 65 percent to 70 percent range.  This is simply not sustainable at a time of ever increasing healthcare costs and in the highly competitive marketplace in which AT&T Mobility operates.  

The Company is confident that the process agreed upon will yield a new agreement allowing us to compete aggressively while continuing to provide good jobs with good benefits.   We have every intention to work with the union to reach an agreement and remain confident we will do so in a way that is fair and leaves us in a competitive position in our industry.

QUESTIONS AND ANSWERS ADDED JUNE 20, 2008

Q. Part of the answer [to a recent question] was “The plan we have in place is better than 75 percent of those provided by other companies that also subsidize health care as a perk of employment.” My question is that this better than 75 percent that is provided by other companies is that also including AT&T wireline too?  If we are one company and the wireless end of the company is the most profitable part of the company, we should not get less benefit coverage than our coworkers at the wire line end of the company.  I do not want what the manager’s have. I have listened and heard what kind of coverage they have and that would not benefit me or my family.

--LR

A. AT&T employees are in the top quartile of health care benefits, regardless of which plan they are under. In fact, Mobility union employees are in the top 5 percent, meaning that 95 percent of Americans whose employers still provided health care coverage pay more.

QUESTIONS AND ANSWERS ADDED JUNE 19, 2008

Q. I heard an interesting report on NPR this morning and a statistic thrown out was that 60 percent of insured workers are UNDERINSURED. The implication is that even though they have employer-provided insurance, the out-of-pocket expenses are at a level, based on income level, workers can not afford basic healthcare services. The underinsured have the same rate of preventative care, and anticipatory health detection as the uninsured. Are we going to be part of these statistics in 2009?

--DC

A. Many American employers are totally abandoning health care coverage as an employee benefit. According to the Kaiser Family Foundation, only 60 percent of the employers they surveyed still offer any health benefits at all; that’s down from 69 percent of employers surveyed in 2000.

Nationally, AT&T employees have a level of health care coverage that far surpasses the vast majority of Americans whose employers still provide them with coverage. In addition, when compared with our wireless competitors, AT&T’s health care benefits exceed the benefits provided by those companies.

QUESTIONS AND ANSWERS ADDED JUNE 18, 2008

Q. I read a documentary about a company in California that has great coverage for their employees quite similar to ours, but there are very strong stipulations and also incentives to keep the coverage. As an example I read that EACH employee covered under the health care plan MUST have yearly wellness check ups, as a preventative for catching any issues early, I assume, also I found for those that have health issues, diabetes, heart health issues, and for those with transplants, there were more follow-ups to make sure health was maintained, thus keeping health care costs down. Is there a way we could implement any such options here?

--LR

A. AT&T is increasingly emphasizing healthy lifestyles and good preventive medical care as part of our health care programs. The health care plan proposed by the Company includes 100 percent coverage for preventive procedures.

QUESTIONS AND ANSWERS ADDED JUNE 17, 2008

Q. Will this make our insurance rates increase? I have heard that they are going to more than double.

--AC

A. While the company is seeking some increase in employee participation in health care costs, the amount of any increase is undetermined and negotiations will be continuing through June. As we’ve mentioned before, AT&T is proud of the excellent health care benefits it provides. If you compare our benefit programs to others, 95 percent of Americans who still have health care coverage provided by their employers pay more for their coverage than AT&T union Mobility employees.

QUESTIONS AND ANSWERS ADDED JUNE 16, 2008

Q. Can I add someone on to health benefits?

--RW

A. Dependents eligible for coverage under our health care programs can be added as life events occur. Visit HROneStop to learn more about adding eligible dependents.

QUESTIONS AND ANSWERS ADDED JUNE 10, 2008

Q. When I worked for a hospital, they had a bonus plan where continued health improvement as proven by annual exams would generate a cash bonus to the employee. The bonus would increase each year that the employee improved over the previous year up to a five-year cap. This lower health care costs by having a healthier work force committed to improved health. My question is if ATT and CWA have explored this option as a way to lower costs?

--BO

A. We are always looking for ways to encourage employees to participate in the health care decision making process and to control health care costs through participant involvement. Thanks for your suggestion.

Q. Would like to know if we will be able to add “significant other” to our plan at any time? And if this may be a part of the bargaining?

--PM

A. Participants in the Mobility health plan for bargained employees can add Legally Recognized Partners within 31 days of them becoming a dependent. A Legally Recognized Partner is defined as:

--A Registered Domestic Partner, which is any individual with whom an Employee has entered into a domestic partnership that has been registered with a governmental body pursuant to state or local law authorizing such registration, or

--The same-gender partner of an employee, retired employee, or participant, who has a relationship in accordance with state or local law, such as marriage, civil union or other legally recognized arrangement, that provides similar legal benefits protections and responsibilities under state law to those afforded to a spouse.

QUESTIONS AND ANSWERS ADDED JUNE 9, 2008

Q. Since we are one company now will the wireless pay be matched up with the wire line workers pay?

--JM

A. The wireline and wireless contracts are separate agreements and are negotiated at different times. The contract that is currently being negotiated is for benefits only, not wages.

Q. I have been hearing all kinds of rumors as far as health benefits. Some of the rumors say that we are going to pay more than 75% of the premiums. Other rumors say that we are going to pay 50% of the premiums. Where does the company stand as far as medical benefits and where does the union stand? Are we far apart?

--HM

A. Negotiations have just begun and will continue through June. AT&T is proud of the excellent health care benefits it provides. In fact, 95 percent of Americans who still have health care coverage provided by their employers pay more for their coverage than AT&T union Mobility employees. Although the company is seeking some increase in employee contributions, the rumors you reference have no merit.

QUESTIONS AND ANSWERS ADDED JUNE 6, 2008

Q. Can you explain to me why smaller companies have better health care benefits than AT&T? At a time when AT&T is having record profits quarter after quarter, why is AT&T cutting employees’ benefits?

--WH

A. At a time when many companies are totally ending health care coverage, we’re continuing to provide highly subsidized coverage. In fact, over 95 percent of Americans who still have health care coverage pay more toward their coverage than do Mobility union employees of AT&T. The pressures on health care costs today are undeniable and have created serious cost discrepancies between us and our competitors. In fact, due principally to these cost pressures, only 60 percent of employers surveyed by the Kaiser Family Foundation offer health benefits at all. That is down from 69 percent of employers surveyed in 2000.

QUESTIONS AND ANSWERS ADDED JUNE 5, 2008

Q. Why are the benefits for mobility and residential so different? If we’re all part of a team, why is one team ahead and the other so far behind?

--TK

A. Our current mobility benefit plan is well beyond that of our competitors and the vast majority of corporations that provide subsidized health care. It is always our goal to provide good jobs with good benefits while maintaining the competitiveness we need to remain strong across our wide range of competitive businesses.

Q. My question is simple.  With a No-Strike/No-Lockout clause, what does the union have as leverage in these negotiations?  It seems to me that agreeing to a no-strike rule limits the Unions ability to negotiate and allows the company to delay the negotiations indefinitely until they get what they want.

--TC

A. The parties agreed to this structure to allow a process to reach a reasonable and fair outcome without employees having to worry about being out of work. And, there is every intention to use this process to reach an efficient and fair resolution.

Q. Most of us are concerned with the cap that most NBS representatives have now met.  We need salary increases.  What is happening with that issue?

--PB

A. The current negotiations address only Mobility Benefits. Salary issues are bargained at a separate time.

Q. If AT&T is planning on good faith conversations, why was there a no strike/no lock out clause put in place.  We understand that the management team was very upset with their package, Why should we believe ours’  will be better

--DCD

A. The no strike/no lock out clause was put in place by mutual agreement of the company and the union and we are confident that both parties have every intention to bargain in good faith.

Since Mobility managers just began participation in their plan effective Jan 1, 2008, we are unable to comment on their results. However, after two years of experience with the new management health care plan for AT&T managers, early data indicates, the plan has actually brought out-of-pocket costs down for many employees. What we have found is many participants saved money by employing a number of ideas like switching to generic drugs and over-the-counter alternatives, increasing use of preventive services (which is covered 100 percent by the plan) and using Emergency Room services wisely. In addition, we continue to provide highly subsidized health care to our managers. The plan we have in place is better than 75 percent of those provided by other companies that also subsidize health care as a perk of employment.

Q. In the questions/answers you stated that the health contract between CWA and AT&T is different than the Labor Agreement ending on March 26, 2010.  Where can I find the health agreement? Thank you.

--LF

A. The Mobility National Bargained Benefit Plan is posted in the Background section of this Web site.

Q. When are the Mobility wage, pension and work rules contracts negotiated?

A. The wage, pension and work rules contract for District 6 Mobility was negotiated in February and ratified by the membership in March. Similar agreements expire in early 2009 (CWA Districts 1,2,4,7,9,13), 2010 (CWA District 3), and 2011 (Puerto Rico). These agreements are four years duration.

Q. Why are Mobility benefits and wage contracts negotiated at different times?

A. Collective bargaining agreements are often a reflection of the evolution of our company and the bargaining process. As part of that evolution, the company and the union bargained a separate agreement covering only benefits that allows for a standardization of benefits across Mobility Labor Agreements.

Q. What is the bargaining schedule?

A. Bargaining will open on June 3, 2008, with the contract expiring on June 30, 2008.

Q. Where will bargaining take place?

A. Atlanta.

Q. Are my current benefits expiring on June 30, 2008?

A. No. The current benefits remain in effect through the rest of 2008.

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