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CWA says AT&T/T-Mobile merger could create 96,000 jobs

Posted: , by Ian M.

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CWA says AT&T/T-Mobile merger could create 96,000 jobs
Although AT&T has seen a lot of resistance in their attempt to acquire T-Mobile, at least they have the backing of the Communications Workers of America union as they believe the merger could create up to 96,000 jobs.

AT&T’s biggest opposition in their fight to purchase T-Mobile has been Sprint, who as of now is the nation’s third largest carrier and would fall way behind AT&T and Verizon in terms of subscribers if the merger is to happen successfully. Sprint has been very vocal in their attempts to block this from happening, but the CWA believes that Sprint’s argument that the merger will cause AT&T to cut jobs is incorrect.

AT&T has already made it clear to the FCC that if their acquisition of T-Mobile is allowed 5,000 overseas workers would be brought back to the US, a fact that the CWA has reinforced. That number is in addition to the 96,000 jobs that the union believes the merging of AT&T and T-Mobile could create. AT&T has a plan in place because with the merging of any companies that are part of the same industry there are bound to be workers who do the same jobs. AT&T will be providing a job offer guarantee to all non-management T-Mobile workers. Those workers which AT&T acknowledges will not be needed after the merger will be offered different positions within the company.   

In the report published by the CWA, they reiterate that AT&T has an 8 billion dollar commitment to the expansion of their 4G LTE network. The investment is long term and will take place over the course of the next 7 years. The Economic Policy Institute is responsible for the estimate of being able to produce 96,000 more jobs. However, the low end of their estimate says the merger says about 55,000 jobs will be created. Still, even if AT&T can only make good on the low end of that estimate that is a pretty big figure to use in their legal battles.

So AT&T now has the backing of the Communications Workers of America union that believes AT&T is correct in their argument that the merger will create jobs. AT&T is certainly going to have to keep their foot on the gas if they want to close this acquisition, but it is becoming increasingly more difficult to see any reason why it will not happen. While many believe that Sprint will benefit from the merger because of unhappy T-Mobile customers jumping ship, they will most definitely remain against the proposal. Tell us what you think.

source: CWA

23 Comments
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posted on 09 Nov 2011, 07:57 6

1. arcq12 (Posts: 733; Member since: 13 Oct 2011)


Sprint is just afraid to be deminished when this merger comes through. And it will happen.

posted on 09 Nov 2011, 08:03

2. rendHELL (Posts: 304; Member since: 09 Nov 2011)


i completely agree with you arcq12... AT&T will soon monopolize this business in telecoms...

posted on 09 Nov 2011, 08:12 2

6. arcq12 (Posts: 733; Member since: 13 Oct 2011)


duopoly probably. vzw and att..

posted on 09 Nov 2011, 08:04 7

3. ngo2dd (Posts: 777; Member since: 08 Jul 2011)


a merger never create job because you no longer need the work force of both company.

posted on 09 Nov 2011, 10:27 5

11. corporateJP (Posts: 1520; Member since: 28 Nov 2009)


Only intelligent coment on this page ^

posted on 09 Nov 2011, 15:35 2

19. JeffdaBeat (unregistered)


I have to agree with the comment and the intelligence. When Sprint merged with Nextel, any store that was close to another one was closed over the course of two years. Positions that mirrored each other, one was eliminated.

The thing is, CWA benefits from this. More members, more dues. And this isn't a digg against unions because I was grateful for CWA when I worked for AT&T. But there is a good reason for them to finally side with AT&T...for once...

posted on 10 Nov 2011, 09:06 1

21. remixfa (Posts: 13902; Member since: 19 Dec 2008)


i think the CWA is thinking new members for them as jobs created.. "union jobs". its definitely going to be a net jobs loss when the dust settles.. we've already been told that internally.

posted on 09 Nov 2011, 08:05 5

4. Slammer (Posts: 929; Member since: 03 Jun 2010)


The CWA is biased towards their own kind. I can think of no instance where two merging companies within the same industry created jobs. This fiasco has become overly redundant. Additionally, I'm insulted that ATT and the CWA think we are ignorant enough to believe this propoganda.

John B.

posted on 09 Nov 2011, 10:30 1

13. corporateJP (Posts: 1520; Member since: 28 Nov 2009)


Dead on ^

posted on 09 Nov 2011, 08:06 4

5. Galen20K (Posts: 511; Member since: 26 Dec 2008)


ha, such liars. They'd say anything to get this unlikely merger passed, well they're not fooling the Department of Justice that's for sure.

posted on 09 Nov 2011, 08:28 2

7. Rayzin (Posts: 83; Member since: 27 Oct 2011)


I don't believe this merger will go through... And just because it is creating jobs does not mean that this deal is a good thing.

posted on 09 Nov 2011, 08:38 1

8. arcq12 (Posts: 733; Member since: 13 Oct 2011)


Yes it is obvious that this merger will cut jobs. but Sprint is trying to hide the 'REAL DEAL' when the merger comes through by saying that.

posted on 09 Nov 2011, 08:44 2

9. som (Posts: 768; Member since: 10 Nov 2009)


Sprint magic made Nextel disappeared forever and ATT magic will be the same to Cingular and T-Mobile.

posted on 09 Nov 2011, 09:26 2

10. sniperace (Posts: 95; Member since: 20 Aug 2009)


I'm sure if the deal goes through it will create 96,000 new jobs ...in India!

posted on 09 Nov 2011, 10:28 1

12. refrigerate_me (Posts: 22; Member since: 09 Nov 2011)


merger would create jobs eventually and on the long run would destroy a lot in the yellow NOW....

posted on 09 Nov 2011, 11:37 2

14. downphoenix (Posts: 2267; Member since: 19 Jun 2010)


The job creation has nothing to do with t-mobile merger but their LTE rollout, LOL. And that job creation is temporary. And give it time, they may promise the t-mobile jobs now, but 6 months later AT&T will announce some huge layoff cutting 10% of the workforce because of some poor profit forecast or something or to secure funding on cutting network buildout, etc. When mergers happen, jobs are lost. This is fact. Mergers are done between comapnies that offer similar services to cut the fat so to speak, to increase profit. Cutting employees means increased profit.

posted on 09 Nov 2011, 12:09

15. vvelez5 (Posts: 623; Member since: 29 Jan 2011)


Never would of believed that people that hate capitalism (ATT buying out T-Mobile) would hate unions too. I guess people just really don't like ATT.

posted on 09 Nov 2011, 13:45 2

16. corporateJP (Posts: 1520; Member since: 28 Nov 2009)


AT&T is a circus.

posted on 09 Nov 2011, 14:05 4

17. remixfa (Posts: 13902; Member since: 19 Dec 2008)


Are these jobs created before or after it lets go a huge chunk of the force? Or are we doing the "technically all Tmobile people will be fired, but we will hire back a few of them as ATT employees and call it a new job" shell game?

posted on 09 Nov 2011, 15:00 3

18. kenidi (Posts: 1; Member since: 09 Nov 2011)


Yes I believe.
After killing 141,000 t-mobile work position yes, will be create 96,000.

posted on 09 Nov 2011, 16:55 1

20. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


I dont want to see any jobs lost, but I would like to see att add jobs because we really need jobs here in the states. Also att is one of the few companies that is still hiring americans in this crazy economy and thats one thing no one can say is bad.

posted on 10 Nov 2011, 12:20

22. corporateJP (Posts: 1520; Member since: 28 Nov 2009)


AT&T outsources as well, don\'t let anyone fool you.

posted on 10 Nov 2011, 15:04

23. Hotzb22 (Posts: 103; Member since: 30 Mar 2009)


this union is a f**king joke

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