Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
AT&T, Comcast Seek Job Security For Top Executives, Board Members: Workers Offered the Opportunity t
Washington, D.C. – While AT&T refuses to discuss workers' concerns about jobs and employment security, the company's board of directors and senior executives would give themselves job security at least through 2005, the Communications Workers of America charged.
"This tactic demonstrates all too clearly the ‘Enron gap' between companies' treatment of corporate leaders and ordinary working people," CWA said.
In its contract extension proposal, AT&T did suggest a raid on the union members' pension fund, forcing workers to finance their own job loss, the union pointed out. CWA, which represents 28,000 members at the core AT&T company and some 3,000 workers at AT&T Broadband, is insisting that AT&T and its top executives focus on workers' job concerns as well as their own.
So far, that hasn't happened. When it comes to job protections and security for top executives, senior management and members of the board of directors at AT&T and Comcast Corp. are working hard to cover all their bases, CWA noted.
In a proxy statement filed Feb. 11 with the Securities and Exchange Commission, the two companies outlined several new governance rules:
None of the 12 members of the board of directors, including AT&T's current top executive C. Michael Armstrong, who will sign on to the company as its new chairman, or current Comcast president Brian L. Roberts, who will serve as chief executive, could be replaced before 2005.
After 2005, the top executives could not be removed unless at least nine of the 12 directors vote to do so.
AT&T Comcast shareholders would be denied the right to call a special meeting.
No individual or entity could acquire more than 10 percent of the company's stock without permission of the board of directors.
These proposals are highly unusual, especially in wake of the Enron debacle, the Global Crossing collapse and other high-profile bankruptcies and indicators of possible corporate wrongdoing. The AT&T Comcast board will be entrenched, a move very much out of step with the growing – and clearly necessary – public scrutiny of corporate boards of directors, CWA pointed out.
Analysts said the measures would make it impossible for another company to buy AT&T Comcast without its consent, and that even if another entity could buy enough voting shares, it would be unable to replace the directors and top officers. The proposed $72 billion merger must be approved by the Department of Justice and the shareholders of both AT&T and Comcast.
###
"This tactic demonstrates all too clearly the ‘Enron gap' between companies' treatment of corporate leaders and ordinary working people," CWA said.
In its contract extension proposal, AT&T did suggest a raid on the union members' pension fund, forcing workers to finance their own job loss, the union pointed out. CWA, which represents 28,000 members at the core AT&T company and some 3,000 workers at AT&T Broadband, is insisting that AT&T and its top executives focus on workers' job concerns as well as their own.
So far, that hasn't happened. When it comes to job protections and security for top executives, senior management and members of the board of directors at AT&T and Comcast Corp. are working hard to cover all their bases, CWA noted.
In a proxy statement filed Feb. 11 with the Securities and Exchange Commission, the two companies outlined several new governance rules:
None of the 12 members of the board of directors, including AT&T's current top executive C. Michael Armstrong, who will sign on to the company as its new chairman, or current Comcast president Brian L. Roberts, who will serve as chief executive, could be replaced before 2005.
After 2005, the top executives could not be removed unless at least nine of the 12 directors vote to do so.
AT&T Comcast shareholders would be denied the right to call a special meeting.
No individual or entity could acquire more than 10 percent of the company's stock without permission of the board of directors.
These proposals are highly unusual, especially in wake of the Enron debacle, the Global Crossing collapse and other high-profile bankruptcies and indicators of possible corporate wrongdoing. The AT&T Comcast board will be entrenched, a move very much out of step with the growing – and clearly necessary – public scrutiny of corporate boards of directors, CWA pointed out.
Analysts said the measures would make it impossible for another company to buy AT&T Comcast without its consent, and that even if another entity could buy enough voting shares, it would be unable to replace the directors and top officers. The proposed $72 billion merger must be approved by the Department of Justice and the shareholders of both AT&T and Comcast.
###