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AT&T Reaches Contract Extension Agreement With 7,000 Wireline Workers

By Nathalie Tadena AT&T Inc. (T) said it has reached an agreement to extend the contracts for 7,000 core wireline employees by one year. The agreement extends the terms of the workers' current contract without modification until June 22, 2013. Most of the employees covered under the contract are members of International Brotherhood of Electrical Workers Local 21 and are in Illinois and northwestern Indiana. Last week, the telecommunications company said it would work with the workers' union to reach a contract agreement after the employees had failed to ratify the one-year contract extension. The parties had reached a tentative agreement in May that included a 1% base-salary increase and other provisions. Tens of thousands of workers represented by the IBEW and the Communications Workers of America have contracts that expired June 23 or are expiring Aug. 4, respectively. All told, the company has about 256,000 employees. In recent quarters, AT&T has seen slight revenue declines in its wireline division, which includes traditional home and business telephones and the U-verse television service. Shares were up by 26 cents at $35.13 in recent trading. The stock is up 16% over the past three months. Write to Nathalie Tadena at nathalie.tadena@dowjones.com

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