AT&T workers rally in Indianapolis against "broken promises" since federal tax cut

Billy Kobin | IndyStar

A group of Midwest AT&T workers rallied in Indianapolis Wednesday as part of a multi-state tour to protest AT&T job cuts made since President Donald Trump approved a sweeping tax cut in December.

Two AT&T workers and one former employee started their "Broken Promises Tour" earlier this week to highlight what they say is a failure by AT&T leadership to use the federal tax cut to invest in workers and create jobs.

They were joined at the rally outside of the AT&T Building, 220 N. Meridian St., by local AT&T workers and labor leaders.

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AT&T CEO Randall Stephenson supported the $1.5 trillion tax overhaul, which slashed the corporate tax rate to 21 percent from 35 percent. Before the tax cut was passed, Stephenson said in November the company would spend at least $1 billion in capital expenditure and be able to create about 7,000 jobs thanks to the overhaul.

AT&T reported a $20 billion fourth-quarter windfall after Trump signed the Tax Cuts and Jobs Act and also provided $1,000 bonuses to more than 200,000 U.S. employees.

However, the Communications Workers of America (CWA) said Stephenson has reneged on his promises. CWA estimates that AT&T has cut 7,000 jobs since January and outsourced jobs to low-wage and overseas contractors.

In late July, CWA launched radio ads in Indiana, Michigan, Minnesota and Texas that tie Republican candidates to the job cuts.

Tim Strong, president of CWA Local 4900, which represents about 2,500 workers in Indiana, said the AT&T call center in Indianapolis had about 1,200 workers at one time but now has fewer than 200 due to outsourcing.

AT&T has cut about 800 jobs in Indiana since 2015, Strong added.

"For us, it’s about losing the opportunity to build those middle-class jobs that will support a city like Indianapolis," Strong said.

The multi-state tour began in Michigan on Monday and will end at AT&T's headquarters in Dallas on Friday. It comes as 14,000 AT&T workers represented by CWA prepare to strike around the country if the company "refuses to commit to protecting U.S. jobs," according to a news release.

More than 10,000 AT&T workers in the Midwest walked out of work May 31 to protest what CWA members called "unfair labor practices" by AT&T during negotiations for a new contract.

The walkouts ended less than a week later despite union leaders and AT&T not reaching an agreement. Contract negotiations are ongoing, AT&T spokesman Marty Richter said in an email to IndyStar.

"Our position in negotiations is very fair and has nothing to do with tax reform," Richter said. "The final offer provided to the union on May 22 offered annual wage increases – over 11% compounded over four years – plus annual pension increases, continuation of job security provisions that are virtually unheard of in the U.S., comprehensive healthcare and retirement benefits and a commitment to hire 1,000 workers in the Midwest."

Richter said AT&T has hired more than 8,000 employees in the U.S. this year and plans to hire thousands more. In Indiana, Richter said AT&T hired more than 180 in 2017 and about 100 workers so far this year.

At the same time, Richter said, technology improvements and changes in demand have resulted in the cutting of some positions.

"Most of our union-represented employees have a job offer guarantee that ensures they are offered another job with the company if their current job is eliminated, and when that happens many wind up staying on our payroll," Richter said.

Workers at Wednesday's rally said they have not seen those new jobs and that AT&T has not protected employees after job cuts.

Laheelah Hunter, a facilities specialist for AT&T in Lakewood, Ohio, is part of the "Broken Promises Tour" and said call centers are being closed all across the Midwest.

The tour is a way to meet with politicians, CWA leaders and employees to bring attention to AT&T's job cuts and outsourcing, said Hunter, who has worked for AT&T for about 19 years.

USA Today contributed to this report.

Contact IndyStar reporter Billy Kobin at (317) 444-6123. Follow him on Twitter: @Billy_Kobin.