From: Phillip.Dampier@f228.n260.z1.fidonet.org (Phillip Dampier)
Newsgroups: comp.dcom.telecom
Subject: AT&T Job Cuts Cost Taxpayers $3 Billion
Date: 15 Apr 92 22:04:45 GMT
Article-I.D.: eecs.telecom12.320.3
Organization: TELECOM Digest
X-Submissions-To: telecom@eecs.nwu.edu
X-Administrivia-To: telecom-request@eecs.nwu.edu
X-Telecom-Digest: Volume 12, Issue 320, Message 3 of 7

AT&T JOB CUTS COST TAXPAYERS $3 BILLION, THREATEN QUALITY SERVICE, CWA
CHARGES

DALLAS, APRIL 15 -- Despite AT&T's steady growth and profitability,
the company's job cuts since the 1984 Bell System break-up have cost
American communities more than $3 billion, the Communications Workers
of America charged.

CWA Vice President James Irvine addressed the AT&T shareholders
meeting today in Dallas, speaking in support of a union-backed
resolution to request that AT&T establish a Facilities Closure and
Relocation of Work committee, including outside Board members and
employee representatives to weigh decisions on plant and office
closures, movement of work, and downsizing of the workforce.

Irvine, head of CWA's 100,000 member AT&T bargaining unit, said the
corporation has jettisoned 123,000 jobs over the past eight years, and
he cited an independent research study that found that each lost AT&T
job costs local governments more than $27,000.

The study, conducted by the Midwest Center for Labor Research of
Chicago, involved an examination of AT&T layoffs and closings in a
sampling of large and small cities.  The locations were New York,
Kansas City, Cleveland, Houston, North Andover, MA, and San Leandro,
CA.

The costs include lost tax revenues, increased outlays for social
benefit programs, and lost business revenues in the respective
communities.

The study also found a ripple effect in the communities where plants
closed.  More than 850 ripple effect jobs were lost for every 1,000
plant people laid off.  Also noted was that 1/3 of off-roll employees
will be unemployed one year later, and 1/5 will be jobless two years
later.

"I believe we as AT&T's owners have an obligation to have all
alternatives explored before downsizing," Irvine stated in his
remarks.  "An obligation not only to employees but to the communities
that will be affected."

Irvine urged the AT&T shareholders to support the union's resolution,
despite the board's recommendation against it, citing the changes
within AT&T organizations from year to year, "traumatizing employees
in both the union and in lower levels of management, based on
particular managers' views of how the business should be run to suit
their needs on that day."

Irvine went on to say: "We have seen consolidations occur laying off
people in several locations only to find a year or two later that
there is truly a need, in the new managers' view, to have the work
diversified across the country to be closer to the customers, then
causing surpluses or layoffs in the location of the consolidated
group," Irvine continued.  "We can look at the newest announcement of
the layoff of 6,000 operators.  I believe there is a lot of room in
this case to integrate other work into operator services, not only
keeping work inside AT&T but also enhancing the jobs.  The work I
refer to is telemarketing work which is presently contracted outside
of AT&T."

"We recently saw a joint venture established in Tampa, Florida, which
caused surpluses of technicians.  This joint venture sold out AT&T's
equity in the General Business Systems.  That was a decision
absolutely contrary to the best interest of AT&T.  You simply cannot
grow a business or be competitive by selling out equity."

"A few years ago, we saw the split of the large business group and the
general business group which caused surpluses and diminished service
to the customers, and now I understand that business is being brought
back together."

"We've all seen the bad press about blackouts and how the diminished
service has caused customers to leave AT&T.  {The Wall Street Journal}
has graphically reported these issues, and even they suggest that
workers have been cut too severely."

Citing a full page ad in yesterday's {New York Times} signed by Lee
Iacocca, Irvine urged support for establishment of the joint
committee, and quoted the ad: "You can buy technology.  You can't buy
experience, loyalty, and pride.  Those are the real ingredients of
quality.'  Let's fold all of those ingredients into downsizing
decisions."

CWA members across the country stood up at their worksites
simultaneously at 11:30 AM Eastern Time, in support of Irvine's
message.  Members also wore red today to symbolize their solidarity.

CWA represents over 600,000 workers in telecommunications, printing,
publishing, media, health care, and the public sector in the United
States and Canada.


For further information, contact:

Jeff Miller
Gaye Williams Mack
Communications Workers of America
(202) 434-1172