What does the acquisition by AT&T Mean for T-Mobile Workers?

On March 20, 2011, Deutsche Telekom announced an agreement to sell T-Mobile USA to AT&T. This development has received a lot of press coverage for its potential impact on consumers, but what does it mean for workers?

The questions below answer some common concerns, but we encourage you to keep up to date with breaking news and ask questions at our TU Workers Forum. This is a safe place where workers can talk to workers. Management is not allowed to join. You will find answers to your questions and get support from local Communications Workers of America (CWA) organizers who can help you organize a union in your workplace. You can also contact an organizer in your area directly by clicking here.

And, even if you aren't able to join the forum, make sure to sign up for our e-mail updates so that we can keep you informed about the latest developments.

Is a merger with AT&T good for T-Mobile workers?

Deutsche Telekom, T-Mobile USA’s parent company, considered mergers with other telecommunications companies. But the AT&T merger is best for three reasons:

  1. AT&T is a market leader. The merger will create growth opportunities for the struggling T-Mobile and put it in a better position to succeed.
  2. The two companies use the same network technology, making integration seamless for customers and simpler for workers.
  3. AT&T’s CEO has stated publicly that the company will honor T-Mobile workers’ choice to unionize. AT&T has a contract with CWA that requires the company to remain neutral so that workers can decide about union representation without management interference.

Is the AT&T deal better for workers than a merger with Sprint?

A merger with Sprint would have been less favorable for T-Mobile employees for at least four reasons:

  1. The merger would have combined two struggling corporations. Historically, such merged entities continue to experience trouble and workers bear the brunt of it.
  2. Sprint has had difficulties merging the technologies – CDMA and iDEN – that Sprint and Nextel brought to the 2005 merger. T-Mobile’s technology – GSM – would have posed an additional challenge to workers.
  3. Sprint has a history of outsourcing operations, especially in customer service and tech work. A combination with T-Mobile would have put at risk those jobs.
  4. Sprint management has the same opposition to worker self-organization that T-Mobile USA had.

What does the merger mean for my job?

Every merger has a certain amount of job risk. Management may seek to eliminate overlapping responsibilities, but there are ways you can protect your job:

Your best protection is a union contract. Unions can require the employer to negotiate the terms of the merger so workers’ voices are heard.

Workers can still form a union after the merger, but may have less opportunity to influence it. T-Mobile workers who choose a union before the merger will have a collective voice to work with management on the impact of the merger. After the merger, depending on the timing, opportunities to influence the impact of the merger may be limited.

Why join a union now?

Without a union, it is 100% legal for T Mobile to make any changes to your terms or conditions of employment. They can decrease pay, benefits, they can contract out, downsize, etc. You will have no say in this without a union

If you and your co-workers win union representation NOW, it would be 100% ILLEGAL for T Mobile to make any changes to your terms or conditions of employment without bargaining with the union. This gives workers a huge amount of power during any transition.

What is the union like at AT&T Mobility?

42,000 workers at AT&T Mobility have CWA representation. That amounts to roughly 94% of those eligible to belong to a union. Currently CWA has four contracts covering workers based on geographic location.

CWA is the largest telecom union in the world. It represents roughly 700,000 workers and retirees in total and roughly 250,000 workers in the U.S. telecommunications sector. Click here for more information.

What is the relationship between CWA and AT&T Mobility?

CWA and AT&T management have a contract that allows workers to form unions free of intimidation or delay. Union reps are allowed onto AT&T premises to answer questions and to encourage employees to sign union cards. Once a simple majority sign union cards under this agreement, and the majority is verified through a neutral third party, AT&T recognizes the union and begins to bargain.

The contract does not mean there is no conflict. Management has its ideas about the company. Workers and their union have theirs. Conflict over compensation is inevitable but it is worked out in an orderly fashion. No one is fired for suggesting that workers should have better wages or benefits. Union and management negotiate.

Will AT&T’s relationship with CWA change after the merger?

No. AT&T management recognizes that any new entity they purchase will be covered by the neutrality agreement with the Communications Workers of America. AT&T CEO Randal Stephenson said as much on a conference call with investors on March 21:

“We have with the CWA a card check neutrality agreement, so if those employees decide they want to be represented by the CWA, then that process is there and it’s the CWA’s responsibility to make that happen. In fact, you saw that happen with AT&T Wireless deal – you saw the CWA begin to represent those employees in fairly short order. So that’s how that process will work out.”

What are the terms of the AT&T acquisition?

AT&T will pay Deutsche Telekom$39 billion - $25 billion in cash and $14 billion in AT&T stock. As a result, Deutsche Telekom will own 8% of AT&T and have one seat on the Board of Directors. Click here for AT&T’s fact sheet.

How long will it take for the merger to be completed?

AT&T estimates that it will take up to one year for regulatory authorities to approve the transaction. AT&T believes that the merger will be approved – and has agreed to a $3 billion penalty if the deal does not go through.

Does this mean the “We Expect Better” campaign for representation at T-Mobile is over?

Not at all! We need to eliminate fear at T-Mobile workplaces – the fear to exercise basic labor standards, such as the right to form a union, and the fear of losing one’s job for failure of low-level performance reviews. The international campaign supporting T-Mobile workers is now focused on helping T-Mobile workers exercise their rights.

We Expect Better from T-Mobile:

  • Respect and fair treatment
  • Consistent, clear work rules
  • Fair pay
  • Real due process with union representation
  • Protection against unfair discipline
  • Reasonable workloads
  • Improved training to meet our customers' needs
  • Affordable health insurance
  • Recognition of our lawful right to organize, as at AT&T

How can I get involved?

We've formed TU to win these changes and help organize employees on the frontline. We belong to both CWA and ver.di (the German services union, which represents our counterparts in that country). Join us!

Together union and management can built a stronger T-Mobile as it prepares to merge with AT&T!