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AT&T Legacy T Bargaining Report #36

The Medical Benefits Subcommittee met to discuss the “Excise Tax”, which is part of the Affordable Care Act, that doesn’t kick in until 2018. It applies a fee on so called “Cadillac Plans” which exceed a certain high level of coverage.

The company wants us to bargain now, in 2015, to change our plan so it does not trigger the tax in 2018. The Union position is that the rules for that tax have not even been completed; they are changing and will continue to change and there is no way we will model our plan on a vague predication of what might happen in the last year of our agreement.

We have told the Company we will agree to reopen discussions on the health care plan in 2017 IF (and that is a big IF) it appears the tax will be imposed. The Union is willing to partner with the Company to lobby to make modifications in the rules (or get rid of it altogether.)

Meanwhile we are NOT making progress on our key issues - the cost of benefits, job security, pensions, wages and improvements for our current Retirees.

We know this is dragging out but we need you to keep putting pressure on AT&T. Reach out to your Local newspapers and radio stations. Talk to them about what AT&T is doing. Talk to them about how unjust it is that companies like AT&T are amassing huge profits and paying huge salaries to their Executives but are refusing to treat their employees fairly.

You Bargaining Team,

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