The Nation - News from May 28, 1989

AT&T; and unions representing about 160,000 workers were near agreement on new contracts, resolving disputes over medical benefits and wages in a frenetic day of bargaining in Washington that brought the two sides so close the unions extended a midnight deadline. A final dispute over certain job-classification titles blocked a settlement. But, believing an agreement was at hand, the two unions agreed to bargain through the night. The agreement being worked out by American Telephone & Telegraph and the unions included a wage and profit-sharing package that should bring workers raises of more than 10% over three years, a source said. AT&T; had previously not offered profit sharing to its union workers. The source, speaking on the condition of anonymity, said the unions had fought off AT&T;’s demand that workers pay more up front for health care costs, an issue that had dominated the talks.