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Former Verizon Wireless CEO Denny Strigl on the potential strike by AT&T union workers over plans to cut pensions and increase benefit costs.
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EA and -- all 40008 -- -- union workers are ready to strike Easter Sunday that's this Sunday.
I've said the Telecom company is trying to increase their benefit -- and cut back on their pensions.
Is very similar to what happened to Verizon back and I'll remember that.
Former Verizon Wireless CO -- -- says for -- This what could be worse I remember you and I chatting about this leave me did do this they were -- rights executives home.
How they were picketing these CEOs home in New Jersey right and now they're a lot more top executives in and around that -- process of integrating it but what's what's gonna bucket -- -- here's here's the issue if you look at AT&T'S.
Union members.
Overall about 60% of their workforce more about a 150000.
Of their workers.
Are you unions now what's happening here in this for union contracts so -- high error and Madonna number of a percent higher percentage overall effect they have.
Union membership in their wireless organization which prices and I really -- you know that okay Verizon doesn't so the the ripple effect.
For AT&T could be very significant here.
Now the 40000 numbers may strike but they can also pick it.
Locations that may cause other AT&T world today etc.
is it similar to the kind of cost cutting efforts at Verizon -- it it -- -- I mean they're not taking benefits and -- -- -- it's almost exactly the same.
The issues are that there by by the way they're highly compensated people they know that.
-- health care is in to almost entirely paid for what the company needs is for them to contribute more to their own health care.
They also have a defined benefit pension.
Now -- in the private sector very few companies have that -- Ryan and the company needs some break significance concessions from the union why.
Because if you look at the landline telephones today they're being disconnected in droves.
For the landline telephone companies of which AT&T is has a large part.
Their revenues are going down and they're operating income is taking the nosedive why competition from cable companies and from wireless so.
What -- -- did -- do what they're trying his reign in these outlets in the defined benefits that they're trying to do defined contribution plans.
But the nine getting rid of the defined benefit plans to trying to grandfather of the man right I -- or or short or two -- plus shipping to -- -- that -- you receive obviously not well.
Typically -- what happens is the workers who have been there -- continue on with what they have.
And new workers who get hired to replace them as they retire go under new and -- benefits that are less costly.
To what to company sure so.
You know what Verizon went through -- this last year even post -- days running the company but on.
What can AT&T -- sports it.
Well right whether the union really strikes or not remains to be seen I think if they work to strike I think they're taking a gamble what happened in Verizon.
Was 45000.
Workers went on strike -- unions called -- strike.
Two weeks later they went back on the job the workers didn't really want -- strike they knew that they have good wages and good benefits fact of the matter is that.
They they union -- to Verizon.
-- right Verizon didn't back down on what they demand that the union members saw that this could potentially be a very long strike.
And they said to their unions we want to go back to work we would think the ones that are associated with the -- -- the wired you know phones.
Com.
Well drillers are days are numbered anyway -- they're not careful.
-- -- But -- this Atlanta landline phones that they're gone they're going away -- you so bullish I wouldn't be pushing it.
Well I think that the fact of the matter is that it -- they have to change their benefits.
And eventually their wages say it has to be done.
Because what I really look -- this subject -- no one is taking benefits away they did did that they're they still.
Get a lot for what they're they're asking they're asking -- it's been a little more they're asking workers to chip in world war by the way.
AT&T wireless workers already pay about 20%.
Of their health care cost so you know this is also an election year as a as the performers CO yourself.
Does that play hints -- things for you dreaded.
Here's the issue AT&T.
Has more unionized workers than any other company in the United States.
-- and the union can stand to make a point here that they'd like to see ripple across -- to other companies.
What what happens -- -- with a lot has happened that many other companies and that's the battle now the question is will the union members.
Allow their union to make an example.
Well put won't put tell -- it's gonna carry on zoo is modest tick off people what you're here if you -- -- you if you're -- union people be steady -- -- thank you very very.
