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Communications Workers Voice Concerns for Shareholders, Employees and Regulators Raised by AT&T-Comc

Washington, D.C. — The Communications Workers of America stated that the proposed merger of AT&T Broadband with Comcast raises many concerns for shareholders, for employees of both companies, and for consumers and regulators.

CWA represents 28,000 employees of AT&T, including 3,000 at Broadband, and another 500 at Comcast in seven locations. Their employment future will be the top concern in union contract negotiations with AT&T set for this May.

The union said that the merger, which would give one company control of 40 percent of the cable market, creates major antitrust issues to be addressed by federal regulators and Justice Department officials and by local level regulators who will view the deal with an eye to the quality of service the companies have been providing to date.

If approved, the proposed deal also would transform the regulatory landscape of the entire industry. Creation of a dominant or monopoly cable company would accelerate the movement of the Bell companies into long distance and also lead to other huge mergers of cable, digital satellite and telecom enterprises, CWA noted.

There are several concerns for shareholders, including CWA's AT&T members who own more than 5 percent of the company's stock. A major one is the question of debt allocation among the AT&T companies and whether the consumer long distance and business service companies will be burdened by excessive debt – debt which was incurred chiefly from cable acquisitions to create AT&T Broadband, the union pointed out.

Shareholders also may question the fact that the Roberts family will own less than 1 percent of the new AT&T Comcast, and yet will control the company through a special class of stock giving them one-third of the votes of the merged company, according to CWA.

CWA cited an inconsistent labor relations record by Comcast, which has shown a strong aversion to union organizing efforts by its workers at several of its local companies. Cable workers have only recently begun unionizing, and to date this segment of the communications industry lags far behind industry standards in such areas as health benefit coverage, safety and health protections and educational opportunity, the union pointed out. The impact of the merger on workers and job conditions in this industry should be a major concern of regulators, CWA stated.

CWA noted that union negotiations are underway at units at both companies on behalf of some 2,000 workers, and in some cases talks with Comcast have been stalled for several months.

Looking ahead, union leaders have significant concerns over the tenor of labor relations within a merged AT&T Comcast as well as over the future health of the remaining AT&T businesses.

In contract talks this May, CWA will be seeking to make sure that employees
in residential long distance — long considered the company's cash cow for costly acquisitions — continue to have a future with AT&T, and that employees in business services have a career path into growth areas such as data communications.

CWA represents more than 700,000 employees in telecommunications, high tech, cable, broadcasting, journalism, publishing, airline customer service, health care, education and public service.

For future updates, check www.attinsider.com.

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