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BellSouth in Tentative Pact With Union, Avoiding Strike

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From Bloomberg News

BellSouth Corp., the third-largest U.S. local telephone company, and the union representing about 56,000 of its workers reached a tentative contract agreement Saturday night, averting a threatened strike.

The settlement calls for wage increases totaling 13% over three years and improved disability and survivors’ benefits, BellSouth said. The pact still faces a vote by Communications Workers of America members.

BellSouth, the main local carrier in the southeastern U.S., said the agreement calls for continuous bargaining with the union and closer cooperation between the two sides in business planning.

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Customer representatives at its call centers who have sales responsibilities will get higher wages and more flexibility in scheduling, BellSouth said.

The previous agreement expired at midnight Saturday. Union members had authorized leaders to call a strike at that time.

BellSouth’s shares fell 39 cents to close at $40.62 on Friday on the New York Stock Exchange. The company, which was created in the 1984 breakup of American Telephone & Telegraph Co., owns Cingular Wireless.

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