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CWA Challenges Discriminatory Benefit Practices at AT&T in Class Action Lawsuit

San Francisco - The Communications Workers of America and several AT&T employees today filed a class action lawsuit against AT&T, charging that the company discriminated against female employees who took pregnancy-related leave before April 1979. The suit was filed in U.S. District Court for the Northern District of California.

AT&T treated women workers who took pregnancy leave less favorably than other employees who were disabled for any other reason during the same period, CWA's suit charges. The class covers some 15,000 women workers who took pregnancy-related disability leave before April 29, 1979, and charges that AT&T's actions violate Title VII of the Civil Rights Act and the Employee Retirement Income Security Act - ERISA.

Employees who suffered from temporarily disabling conditions were given "service credit" for their time absent from work. Pregnant women, however, were required to take "personal leave" for their absences, resulting in lower pensions and lost retirement opportunities, CWA said.

When the Pregnancy Discrimination Act was adopted in 1979, AT&T changed its policy for new employees but continues to penalize women workers who were pregnant and took leave prior to 1979, by disallowing credit for the leave in calculating their pension and retirement benefits.

Ralph Maly, the CWA vice president representing workers at AT&T operations, noted that AT&T has continued to ignore court rulings that concluded that this policy violated both civil rights and equal opportunity statutes.

In 1998, Pacific Bell, a former AT&T subsidiary, agreed to a multi-million dollar settlement after a federal appeals court found that a similar policy used by Pacific Bell violated pension and civil rights laws. CWA was also a plaintiff in that case which provided relief to thousands of Pacific Bell employees and retirees.

"Now it's time for AT&T to take responsibility and end this continuing discrimination against women workers who took pregnancy-related leave before 1979," Maly said. "CWA is committed to gaining these workers the service credit and fair treatment they deserve," he added.

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