AT&T; and Its Unions Agree on Early Retirement Package

American Telephone & Telegraph Co. has reached agreement with its unions on a voluntary early retirement package that nearly doubles--to 33,500--the number of workers eligible for a pension.

The telecommunications giant said Tuesday that 15,500 workers could sign up, in addition to 18,000 non-management employees currently entitled to a pension.

The company has reduced its work force by 25% the past six years in an effort to increase profitability.

But this is the first time it has offered an early retirement package to union employees.

“Essentially, the special incentives will help certain AT&T; organizations reduce jobs and consolidate offices as part of a continuing company-wide effort to meet competition and trim operating expenses, largely through voluntary plans,” the company said.

The plan adds three years of age and three years of service to the work records of 165,400 employees, increasing the number eligible for retirement. Workers who have been with the company at least five years will be included in the program.

The pact was reached with the Communications Workers of America and the International Brotherhood of Electrical Workers.

Last year, AT&T; offered an early retirement plan to managers that added five years of age and service to their work records, plus 15% to their pension checks for up to five years.

About 39% of the 32,121 eligible supervisors signed up, trimming management to its current size of about 116,000.

The non-management package is virtually identical to last year’s management retirement program, the company said.