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CWA Still Lying About AT&T, T-Mobile Deal Job Creation
Simply to Get Another 20,000 Dues Paying Members
by Karl Bode Tuesday 08-Nov-2011 tags: competition · business · wireless · bandwidth · Op/Ed · consumers · wireless
Last summer the CWA, having just got done admonishing Verizon for being a corporate bully, decided to breathlessly support the AT&T T-Mobile deal despite the deal's likely negative impact on price, competition, and employment. Why? The CWA simply wants 20,000 new dues paying members at a time when their influence continues to wane. To get those members, the CWA has been willing to repeat any and all merger benefit claims AT&T has circulated, including the claim that the deal will create nearly 100,000 jobs.

Except as we noted last summer, that number was pulled from an EPI report that was actually counting potential job years -- defined as "one year of employment" -- not actual jobs. It also never claimed the AT&T T-Mobile deal would create jobs, which is kind of an important point. In reality, the elimination of redundant positions at T-Mobile, and the closure of retail locations, could mean the elimination of tens of thousands of positions. Despite the dubious potential for any substantive job creation, the CWA has issued yet another press release (pdf) saying "new" data suggests 96,000 jobs will be created by the deal:

Click for full size
AT&T has made a commitment to spend $8 billion over seven years to extend next-generation, 4G LTE broadband to 97 percent of the U.S. population. Research shows investment in broadband infrastructure has a strong positive employment effect — direct (construction, network), indirect (suppliers for the build out), application-stimulated (jobs created due to increased broadband services), and induced (workers spending their earnings).

According to the Economic Policy Institute (EPI), each $1 billion in capital expenditure on wireless infrastructure can create up to 12,000 new jobs a year as a result of network expansion. EPI estimates that an $8 billion investment will create between 54,834 and 95,959 jobs for the seven-year program. Some jobs will be in network construction, other jobs will be in supplier companies, and still further employment will be induced by newly hired workers spending their income.

Except the data isn't new, it's still pulled from that same EPI report that generally explored the relationship between investment and job creation, while referencing "job years" -- not actual jobs. Even the report's authors have confirmed (pdf) the report should be taken generally, doesn't seriously claim job creation from the AT&T T-Mobile deal, and doesn't fact check any AT&T claims.

At the end of the report, we note that AT&T has claimed that it plans to increase net investment in wireless broadband infrastructure by $8 billion over seven years as a result of the proposed merger with T-Mobile. The report did not analyze the veracity of this claim...
-EPI
In fact, the job creation numbers cited rely entirely on AT&T's claim that network investment will be increased as part of the deal, which isn't true. While AT&T and the CWA are busy telling regulators the deal will increase network investment by $8 billion, AT&T is on the record telling investors the deal will reduce investment by $10 billion over 6 years.

T-Mobile, based on historical averages, would have invested $18 billion over the period in question. If T-Mobile is eliminated and overall investment is reduced, guess what happens to the CWA's job estimates?

Leaked AT&T documents prove AT&T's claim the T-Mobile deal will push LTE coverage to 97% of the nation is false. In fact, the documents show AT&T has all the resources needed to deploy LTE nationally -- they just made up the talking point that the deal would expand LTE coverage from 80-97% to win regulatory approval for the deal. AT&T's also telling regulators they'll bring back 5,000 lower quality call center jobs should the deal get approved, but an insider tells Broadband Reports this was already planned due to a contract expiration and unrelated to the T-Mobile deal.

There really are no new jobs being created by this deal. The false job claims are being repeated to sell the deal in a sour economic climate. While the CWA is busy protesting Verizon's corporate greed down at Occupy Wall Street, they're willing to lie to support a deal that would further entrench the AT&T Verizon duopoly, resulting in a devastating impact on jobs, prices, and competition. Perhaps if the CWA wants to stop the erosion of union relevance in the modern age, they can start with a little more consistency and integrity.

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Linklist
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CWA leaders in it for themselves - not about helping members

Let's face it. Union leaders are only in it to feather their own beds. They could care less about their own membership. And that is the main reason union membership has been shrinking for decades - corrupt leadership.

JasonOD

@comcast.net

Re: CWA leaders in it for themselves - not about helping members

Which means happy days for the companies that have to deal with the CWA. They are becoming more irrelevant, even to their own membership.
CXM_Splicer
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Sounds exactly like today's political landscape. Politicians don't give a crap about their constituency, only about how they can improve their own financial futures. I think it is an inherent problem with the republican political system in general... it is just so open to corruption.

Unions have given us so many good things, it would be ridiculous to let them die out (or even worse to hope they die out!). The union leaders not withstanding, a union is simply a group of employees who fight oppression and unfairness. To wish them gone is to hope for unrestricted oppression from the employer; no sane person would think that is a good thing (except maybe the employer and the stockholders).

So then the million dollar question is 'How do we get the corruption out of politics?' (and therefore unions).

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And on the ongoing AT&T legal merger front, the DOJ says they are eager to go to court in their suit against the merger. LOL - sounds like a negotiating tactic to me.

»news.cnet.com/8301-1035_3-573206···1_3-0-20

no2paranoia

@charter.com
Except history has shown that as union membership declines so does the pay and quality of life for middle class workers.

The rich are getting richer while the middle class income has flatlined despite a weaker dollar (inflation) and more taxes.

The CWA (corrupt in your opinion or not) wants members. The more members the better for them. They have no incentive to just pull numbers out of thir @ss for the heck of it.

Sprint did lobby a jobs study of their own but they failed to distinguish job cuts AT&T has made between their wireline and wireless divisions. Of course there are many more cuts in wireline.

I guess what I'm trying to point out is that while everyone and they mother is trying to pick sides the same way they pick their football teams we have to understand that both AT&T and Sprint are working out of their own self interest. Neither is specifically looking out for the consumer. But when all the cards are down I'm not going to try and save a company who CLEARLY doesn't want to be here.

I say all of this as a liberal and 10 year T-Mobile fanboy.... YES A LIBERAL CAN YOU BELIEVE IT? I want to govt. to regulate policies and make sure the consumer is not getting ripped off but I don't look at AT&T as a company who over-charges for wireless. They are on par with Verizon and offer the nation's 2nd largest network at a lower 850 MHz band that penetrated indoor buildings better on average. There are plenty of low cost alternatives in most markets for those only concerned about cost and not about quality.

I've read all the anti-merger comments but so far most are anecdotal, emotional and sometimes flat out made up. AT&T will be under the microscope to honor her claims in reference to maintaining T-Mobile rate plans (even if customers upgrade) along with the promise to equip T-Mo customers with AT&T compatible phones when/if their local network is affected with a band change.

NoMerger

@publicknowledge.org

Re: CWA leaders in it for themselves - not about helping members

The evidence against the merger is not anecdotal. It is rock solid. AT&T has a history of laying off 10,000 people a year for the last 10 years. Perhaps these are people who could have been transferred from wireline to wireless, perhaps not. In any case, that's not the issue. The net amount of jobs has declined after every AT&T purchase of another company, as is what usually happens after mergers.

The job creation numbers are built around general assertions about the effects of broadband on the economy, and their "96,000 jobs" they cite was, in reality, 96,000 job-years in their own report. As Karl said, that's not the same.

There is no way AT&T can or would be held to any job-related conditions if this deal goes through, and in any case, none would make up for the market concentration if two companies get close to 80 percent of the market.
CXM_Splicer
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Re: CWA leaders in it for themselves - not about helping members

At this point anytime I hear a company raving about the number of jobs they are going to 'create' with their project, my BS filters kick into high gear. AT&T merger, Tar sands pipeline, Obama jobs plan, Bachmann job plan... all a bunch of BS. If you want to know how to get us out of this mess, just look back to the recovery from the great depression.

At least the FCC can see through it.
»online.wsj.com/article/SB1000142···474.html

Hmm, I am surprised the FCC hasn't been taken over by the industry like the FDA, NRC, etc. I guess they haven't had a reason to do so until fairly recently. Maybe Ivan Sidenberg retired from Verizon to be the next FCC chairman?

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Re: CWA leaders in it for themselves - not about helping members

said by CXM_Splicer:

If you want to know how to get us out of this mess, just look back to the recovery from the great depression.

Get dragged in to a world war? Because that is what ended the great depression.
CXM_Splicer
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Re: CWA leaders in it for themselves - not about helping members

Actually, I was referring to the New Deal and a big increase in tax rates for the rich. By the time WWII rolled around, the recovery was pretty much complete in the US. I would love to see a 50-60% tax rate for Walmart, GE, Verizon, AT&T, Citibank, Goldman Sachs, etc. and sales tax on Wall St. transactions. 90% tax on derivatives, credit default swaps, put/call options, certain commodity trading and other financial instruments detrimental to the economy.

And what about the multiple wars we are fighting now? How have we slipped into such an economic state if war is such a boost? Perhaps we should fight 8 or 10 simultaneous wars to get us out of this slump? I think most economists agree that our military expenditure is a primary reason we are in this mess.

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Re: CWA leaders in it for themselves - not about helping members

said by CXM_Splicer:

Actually, I was referring to the New Deal and a big increase in tax rates for the rich. By the time WWII rolled around, the recovery was pretty much complete in the US.

»www.english.illinois.edu/maps/de···bout.htm

Roosevelt introduced a number of major changes in the structure of the American economy, using increased government regulation and massive public-works projects to promote a recovery. But despite this active intervention, mass unemployment and economic stagnation continued, though on a somewhat reduced scale, with about 15 percent of the work force still unemployed in 1939 at the outbreak of World War II. After that, unemployment dropped rapidly as American factories were flooded with orders from overseas for armaments and munitions. The depression ended completely soon after the United States' entry into World War II in 1941.


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»www.politico.com/rss/2012-election.xml
»www.politico.com/rss/2012-election-blog.xml

CXM_Splicer
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Re: CWA leaders in it for themselves - not about helping members

It is a little strange to reference an essay on a poetry site as a statement about the success or failure of the New Deal. While I will admit that the 'gap was closed' after the war began, the recovery trends were already in effect. Even Wikipedia has a more accurate description of the New Deal's effects. I would be happy to post some links to left leaning takes on it but I doubt you would be open to them.

»en.wikipedia.org/wiki/Great_depression

You also didn't address the question as to why our current level of military spending is not accomplishing the same thing economically.

Do you believe the New Deal took us in the wrong direction?
rahvin112

join:2002-05-24
Sandy, UT

Re: CWA leaders in it for themselves - not about helping members

Although wikipedia isn't generally considered a reliable source I'd point out that the article you quote agrees in principle with the one you are challenging. It's widely recognized that the US didn't leave the depression until the WWII buildup began.
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Re: CWA leaders in it for themselves - not about helping members

For a college level paper Wikipedia is probably not acceptable but for a discussion in dslreports.com it is fine.

If you are talking about when the recovery could be considered complete then yes, I agree that didn't happen until after WW2 started. But if you mean to say that us getting into WW2 is what caused the economic turnaround that got us out of the depression then you would be very wrong. Both of these principals are pointed out by the Wikipedia entry.

If, by Darth's quote: "Because that is what ended the great depression.", he meant the former then I misunderstood the point of his post. In fact, if that's what he meant then his reply was pretty much as pointless as saying "The depression was over when we landed on the moon in 1969" which is also correct but meaningless as far as the discussion goes.

I believe, rather, his intent was to discount any effect of the economic and social policy changes instituted by Roosevelt. I was suggesting that it is time to institute similar changes today and I believe he disagrees.
TheRogueX

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said by rahvin112:

Although wikipedia isn't generally considered a reliable source

If having only one error more per article on average than Encyclopedia Britannica means a source is unreliable, then hell, every source in the world is unreliable, huh?

flwpwr

@comcast.net
said by Linklist:

Let's face it. Union leaders are only in it to feather their own beds. They could care less about their own membership. And that is the main reason union membership has been shrinking for decades - corrupt leadership.

Lets face it, they are still more interested in their members than the corporations are. Even if they may not be 100% legit, they are not 100% ill-legit.

I wish cable had a real union backing its members instead of a sparsely foot in the door, and ignored by all, IBEW. Most cable operators pay less to techs who do more right now. Unions have their advantages, trust me from someone on the non-union side of employment. Last year my annual increase was cut in half [not for doing bad but becasue CC felt the need to have more money in their pockets,] but my insurance increased full leaving me making less each check than the year before. Anyone at AT&T have this problem? Anyone?

I'll take a union that needs more members over a union that has no members in my industry.

and no, not that's not the reason union membership has been shrinking, otherwise employment would be 0 due to corrupt ceos. they are all after the same pie, the question is which one is sharing more with you, not which one is not getting any to help you.

Where do you work BTW vader?
corinthos

join:2007-10-09

Re: CWA leaders in it for themselves - not about helping members

Not with thepay increase but our benefits nearly doubled in price and got worse on what they cover. I'm with ATT Wireless.
They also decided to change our attendance policy with about two months warning from 12 a year to 8 so those people who were at 8 or above couldn't miss anymore work until their points fell off which could be up to a year. Also they can fire us for any of our stats not meeting 4 months in a row. It doesn't have to be the same stat either. One of the things that affects our stats is calling a customer back when the line is dropped. If we actually did our job right then a call back that was a longer call could lead us to termination in the long run.
That probably why about half our call center has FMLA.

jseymour

join:2009-12-11
Waterford, MI

A Union Lying?

Say it ain't so!

And unions wonder why the vast majority of the public distrusts, even dislikes them?

Jim
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Re: A Union Lying?

The vast majority? Haha where do you get that figure from? Even the polls that claim less than 50% , the figure is not far below 50%. And most that claim less than 50% (that I have wasted my time reading) are written from an obviously pro-corporate stance.

It is strange how many people come in here and post things that they want to be true thinking that somehow posting makes them true!

»www.usatoday.com/news/nation/201···in_N.htm

AntiUnion

@mellon.com

Union Scum

Lying union scum. The sooner they are gone, the better the average Joe will be!

KrK
Heavy Artillery For The Little Guy
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Re: Union Scum

Uh huh. You know it's true. Once Unions are gone and all worker protections are stripped from pesky regulations, you know Corporations will finally get around to doing the right thing out of the goodness of their hearts. Just get rid of those Unions first, and all will be right with the world.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

alchav

join:2002-05-17
Palm Desert, CA

Re: Union Scum

said by KrK:

Uh huh. You know it's true. Once Unions are gone and all worker protections are stripped from pesky regulations, you know Corporations will finally get around to doing the right thing out of the goodness of their hearts. Just get rid of those Unions first, and all will be right with the world.

Are you saying this "Tongue in Cheek?" In a Perfect World we would all get along, and Corporations and Companies would care for their Employees, but we don't live in this Perfect World. So way before my time Companies abused their Employees, and the Unions were born. Now the Unions have become the same as those Companies and Corporations. Since we don't live in a Perfect World, if you get rid of the Unions it would swing back to the abusive Companies and Corporations. So I'm afraid we need this imperfect balance.

cdru
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Re: Union Scum

So how do you explain the thousands and thousands of small to large businesses that have absolutely no union employees?
CXM_Splicer
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Re: Union Scum

How do you explain that wages have been nearly stagnant for those workers for the past 30 years while the companys' profits increase? Or that the laws protecting workers and consumers have been whittled away for even longer? Where do you see us going if the laws protecting the workplace disappear?

KrK
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They have to comply with LAWS that are a direct result of Labor activity and Unions, and haven't (yet) been able to remove or completely undermine said laws. Yet.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Frohike
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Re: Union Scum

Labor laws protect the minimum wage of a worker. Unions help workers get MORE than the minimum wage. Take the union away and that worker's pay is now at risk of dropping.

Rogue Wolf
Really Ties The Room Together

join:2003-08-12
Troy, NY

Re: Union Scum

And there's plenty of people out there trying to remove those labor laws (and environmental laws, and any other laws keeping corporations from doing anything they want) for being "anticompetitive". Apparently, they believe the only way we can succeed is to out-China China. Which is great, if you want to work 16-hour shifts in dangerous conditions for $4 a day in a neighborhood clouded in pollution while your kids drink water full of lead... or if you're rich and can move away from all that.

Of course, that would destroy America... but the multinational corps can always find some other, emerging market to exploit. And hey, another nation full of undereducated, desperate people means cheaper labor, better profits and higher stock prices!
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Boricua65
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Until the "average Joe" has to work more than a 40-hour work week, loses health benefits, child labor laws are repealed, the corporations evade paying more taxes, holidays are taken away, workers' comp would be eviscerated, etc.

That may all sound doom and gloom but I wouldn't be surprised IF it did happen.
--
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KrK
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Re: Union Scum

said by Boricua65:

Until the "average Joe" has to work more than a 40-hour work week, loses health benefits, child labor laws are repealed, the corporations evade paying more taxes, holidays are taken away, workers' comp would be eviscerated, etc.

That may all sound doom and gloom but I wouldn't be surprised IF it did happen.

Most of that stuff happens more and more already.... and as for Child Labor laws--- hey, just move offshore!
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

cdru
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said by Boricua65:

Until the "average Joe" has to work more than a 40-hour work week, loses health benefits, child labor laws are repealed, the corporations evade paying more taxes, holidays are taken away, workers' comp would be eviscerated, etc.

What? I'm surprised that women's suffrage and rights for minorities aren't in your list of benefits given to the people by unions. You're arguments might have held some water at the turn of the century, early in the 20th century. There is little to support those arguments now.

pnh102
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Re: Union Scum

said by cdru:

What? I'm surprised that women's suffrage and rights for minorities aren't in your list of benefits given to the people by unions. You're arguments might have held some water at the turn of the century, early in the 20th century. There is little to support those arguments now.

Meh... I got one better. Had Adam and Eve been unionized, there would have been no Fall of Man.
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Boricua65
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said by cdru:

said by Boricua65:

Until the "average Joe" has to work more than a 40-hour work week, loses health benefits, child labor laws are repealed, the corporations evade paying more taxes, holidays are taken away, workers' comp would be eviscerated, etc.

What? I'm surprised that women's suffrage and rights for minorities...

said by cdru:

You're arguments might have held some water at the turn of the century, early in the 20th century. There is little to support those arguments now.

I beg to differ. One prime example, recently Wally World decided to have employees work 30 hours or less to avoid giving them health benefits because the minimum is 32 hours.

Wal-Mart Cuts SomeHealth Care Benefits
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cdru
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Re: Union Scum

said by Boricua65:

I beg to differ. One prime example, recently Wally World decided to have employees work 30 hours or less to avoid giving them health benefits because the minimum is 32 hours.

Wal-Mart Cuts SomeHealth Care Benefits

What, in one breath you tell us that employers are forcing employees to work more then 40 hours, then in another you complain that employees are being forced to work less then 30. You can't have it both ways.

Getting employees to work less than X number of hours so that they are considered part time, or ineligible for particular benefits isn't anything new. It's gone on for years and has no bearing on whether the company is union or not. They can just as easily have union labor and simply require employees not to work over the X hours. Or just drop coverage all together. Or make it obscenely expensive that it effectively isn't offered.
TheRogueX

join:2003-03-26
Springfield, MO

Re: Union Scum

The point is that the unions have contracts which prevent companies from forcing an employee to work too few hours (so as to avoid benefits) or too many overtime hours (so as to completely overwork them).

This is actually a GOOD thing.

woody7
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careful what you wish for, think of it as lying business scum,
--
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ASIretiree
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1 edit
yeah, probably, but as a CWA member, data systems to network . HIV twenty-nine years AIDS I am alive because of CWA and find a Republican that cares for anyone other than himself!
I had a third point but I forgot what I was. EPA,maybe?
inSolidarity

KrK
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Nice Fail, CWA

Way to be a posterchild for all the anti-union crowd as well as fork over your rank and file. This reminds me of the Union version of "What's good for MegaCorp XXXXX is good for the American People!"
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
Sammer

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Re: Nice Fail, CWA

CWA union leadership being in bed with AT&T management will only hurt unions in the long run.

KrK
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Re: Nice Fail, CWA

I'm sure they have an idea that more members means they have a better bargaining position.... So they believe that what's good for them is good for the members. It's a classic fallacy you see repeated a lot... like when a local Government uses eminent domain to seize private land in order to enrich another business venture or Company on the grounds that helping that company will increase tax revenue therefore it's for the public good.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
mogamer

join:2011-04-20
Royal Oak, MI

Union leadership

My father was in a union (UAW) and it did help him and many others earn great wages and benefits. He even admitted that GM (the company he worked for) gave them too much. He started out very gung-ho about the union. But by the time he retired he distrusted the union leadership as much as he did GM's leaders. And it wasn't just the auto unions. I have friends who are union members in the construction industry. Talk about corruption. The leaders there basically are on the take with the big contractors. It's a sad situation today. If there were no unions, more workers would get screwed. But union leaders are screwing their members too. Maybe a bit slower than the corporations would, but they're still screwing them. The best a person can hope for is to become self-employed. But laws passed under pressure (i.e. campaign contributions) by big corporations and big unions make it tough to become really successful.

pnh102
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Nice

I've always hated the idea of this merger going forward, but if a union is for this merger then I am by default against it.

And the CWA really needs its management's head examined. While there might be 20k new dues paying victims, how many of their current jobs will be eliminated? Probably far more.
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C_
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Re: Nice

The fact the cwa is for it is really the only legitimate reason to oppose it
lv66vette

join:2004-07-01
Miami, FL
Nice avatar C_, why do you want to kill Socialists?
tmc8080

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unions lie, not new news

first, think about the 75,000 laid off at t-mobile stores which, like the banks overlap and criss-cross every at&t store around the country.

guess what happened when one bank acquired another and their branches were literally right across the street from one another? they CLOSED DOWN the acquired bank branch.

don't trust anyone including unions to tell the WHOLE truth about anything when it comes to the proposed merger.

whatthehell

@embarqhsd.net

State laws and unions

Has anyone stopped to think if the merger would go thru you don't automatically belong to the union.

If a worker is in an area where union membership is mandatory then that worker, more than likely, belonged to a union prior to a merger.

On the other hand, if it's a right to work state then union membership is voluntary.

Yes, CWA would get some new members but putting the figure at 20K seems like a stretch to me.
layoffsatVZ

join:2009-12-31
united state

Re: State laws and unions

I find it ironic that CWA fights big corporations when they are in fact big business themselves, also because I am a cwa member I get the newsletters, take a look at how many big oil stocks they own, I guess they are hedging their bets

boheeber

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AT&T & CWA unlikely partners

AT&T would love nothing better than to have only contractors working there. I am one of them, and each day I see less AT&T badges (blue) and more contractor badges (red). The CWA can say whatever they please, but AT&T would love to bust the union and I wouldn't be surprised if it happened in my lifetime.

Paulster

@rcn.com

It should be called A "Real" Story


I read the whole CWA “The real story” document. It has enough truth woven in to make all that spin look plausible. It is woven in so well it is hard to tell when you are entering exaggeration. Some of the out right lies are easy to pick out. As from an amateur’s scrutiny like mine. Thank you Karl for dissecting the truth out of the spin. I hope your article will be read by all the same eyes that read “the real story”.

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