AT&T;, Unions Reach Tentative Contract

AT&T; Corp. and two unions representing about 50,000 employees said they have reached a tentative agreement on a four-year contract. In a joint statement, the long-distance phone giant, the Communications Workers of America and the International Brotherhood of Electrical Workers said wages and pensions would improve along with the introduction of a performance-based incentive plan for union members. Under the pact, wages would increase every six months, totaling 2.88% in the first year and 3.75%, 3.78% and 3.85% in subsequent years. The agreement would also increase pensions and allow union members to take much of the cash with them if they leave the company. The three parties said it was the earliest contract settlement and the longest new contract term they had ever negotiated. AT&T; shares fell 13 cents to close at $57.50 on the New York Stock Exchange.