A union at AT&T Inc. is accusing the company of reneging on a labor agreement that helped gain the support of worker groups for last year's $85 billion takeover of Time Warner Inc.
As part of a deal renewed in 2017, the Communications Workers of America pledged to support expansion efforts by AT&T and the company agreed to terms for allowing employees from acquired firms to join the union, according to a federal lawsuit filed in April in Washington, D.C. But since the Time Warner merger, the two sides are disputing which new workers are covered by the agreement.
Of about 22,000 U.S. employees who previously worked at Time Warner, AT&T claimed the agreement applies to at most 82, a union official wrote in a letter attached to a June court filing. The union has asked a judge to order arbitration. In May, the company asked that the case be dismissed, saying the company has "the right to determine" which employees are covered by unionization provisions.
"[The Communications Workers of America] will support expansion efforts by AT&T as long as those efforts are not in conflict with our members' interests," union spokesman Beth Allen said.
A spokesman for AT&T didn't immediately respond to an email or a telephone message seeking a comment.
The Time Warner acquisition was completed in June 2018, after a U.S. appeals court rejected claims by the Justice Department that the combination would mean higher prices. Some lawmakers also said it would hurt competition and innovation. But the deal got vocal support from unions.
Business on 07/19/2019