AT&T Advertising Solutions Bargaining Report #7

On Thursday October 28, 2010 the Union and the Company met in the afternoon with the Company responding to the Union’s comprehensive package. The Company denied all of the Union’s proposals except one which they said they are considering.

The Company then presented their counter proposal to the Union which included the following ROLL BACKS:

• Noncommissioned base wage increase was rolled back first year to July 4, 2010

• Noncommissioned base wage increase reduced and rolled back second year to July 3, 2011 and reduced

• Non commissioned base wage increase reduced and rolled back third year to July 8, 2012 and reduced.

• Noncommissioned base wage increase reduced and rolled back forth year to July 7, 2013 and reduced.

• $500 signing bonus was rolled back to zero.

• HRA offered by the Union to help defray the cost of health care cost were rolled back to zero.

• Base wage increases for the Sales Reps, Account Reps, Senior Account Reps and Cyber Reps were rolled back to July 4, 2010, July 3, 2011 July 8, 2012 and July 7, 2013.

• Rollbacks in force adjustment, by surplusing by performance for sales.

• Rollbacks on termination pay if dismissed, except for reasons of misconduct, after having three or more years of net credited service.

• The Company rolled back the pension increase for non-sales from 2% to zero for 2010.

• The Company rolled back medical coverage contributions to June 1, 2011 for new hires and current employees.

• The Company rolled back the annual deductibles to June 1, 2011 for individual and family.

• The Company rolled back the annual out of pocket maximums to June 1, 2011.

• When you move to the new plan in the middle of the year you may pay 3 separate sets of deductibles: medical, prescription, and dental.

• On October 3rd when this round of bargaining began the Company provided your Bargaining Committee with their modeling numbers for 2009 publication cycle. Much to the Company’s surprise their proposed rates & gates compensation plan overall paid all commissioned sales titles substantially less than the current labor agreement.

The Company’s new proposal does nothing to address the previous proposed rates and gates.

• Their new proposal now includes a provision to surplus commission representatives.

by performance, rather than seniority. Representative’s surplussed in this fashion

no longer qualify for termination pay.

• The Company’s proposal no longer includes the Transition Severance Offer

(TSO).

• If ratified, the Company has agreed to consider Union proposals outside of the plan to improve future earnings opportunities for the impacted commission-based sales employees at the end of each publishing cycle in the event there is a material change in the channel average earnings under the new plan. (i.e. percent reduction is greater that the percent reduction in Company’s revenue production). Based on AT&T’s quarterly report (October 21st) AT&T Advertising Solutions segment operating revenue for the 3rd quarter ending September 30, 2010 fell 17.3% as compared to the three months ending September 30, 2009.