NEW YORK (Reuters) - AT&T Inc. (T.N), created from the takeover of AT&T Corp. by SBC Communications last month, said on Sunday it reached agreements with labor unions on new contracts for 11,000 company workers.þþThe company said it reached agreement with the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers union for new contracts that will remain in effect through April 4, 2009.þþThe pacts cover employees of pre-merger AT&T.þþThe company said that the deals provide for four annual base wage increases of 11.2 percent. Pension benefits will be increased by six percent in 2006 and by an additional five percent in 2008.þþAT&T also agreed that before it can lay off employees, they must be offered another position at the company.þþRetiree health care benefits had been a point of contention in the talks, according to earlier statements by the CWA. The cap on company contributions to retiree health care plans was increased to $9,000 per retiree.þþAT&T said the new contracts will help it control health care costs, but still do not require monthly contributions from employees.þþEarlier in December, members of the CWA had authorized a strike against AT&T if the parties were unable to work out their differences.þþSBC Communications Inc. closed its $16 billion purchase of AT&T in November, creating a communications giant with about $90 billion in annual revenue.þþ
Source: NY Times
