AT&T Inc. (NYSE:T) has announced that it has reached a tentative deal with union workers in Nevada and California, that had gone on strike.
AT&T’s announced the tentative deal on Friday, in which the two parties agreed to a four-year deal. The telecommunications company did not disclose the terms of the deal, though it is expected to include continued affordable healthcare, retirement benefits, pay hikes and job security measures. The new agreement will be effective over the next four years and it will represent about 17,000 employees. It also marks the first time that Direct TV employees will be considered part of a union contract since their firm was acquired by AT&T.
The tentative deal marks the end of an employee strike
AT&T made sure that it handled the dispute with the union in a speedy manner especially after 17,000 of its workers went on strike in Nevada and California. Though the Union reached an agreement with the carrier, the deal still has to be ratified by the workers. This includes those in the Direct TV business, the internet and the phone business.
AT&T is also in ongoing negotiations with a second group that includes 21,000 employees in its wireless business in 36 states. Nonetheless, the recent tentative deal with the Union marks the 30th successful talks with between the company and its unionized workers since 2015. The recent strike also marks the first time that the first time that the employees have taken such action against the company since 2012.
“We strive in all of our labor negotiations to reach fair agreements that will allow us to continue to provide solid union careers with excellent wages and benefits and we believe that’s the case with this agreement,” stated a spokesman from the company.
The cause of the union workers’ strike was rising concern over job security, higher health contributions, and wage hikes. Neither the union nor the company have revealed the details of the deal. It also comes at a time when AT&T has been receiving pressure to cut costs due to declining revenue.
AT&T stock closed the latest trading session at $38.87.