AT&T; Warns Union Against Backing Bill

AT&T; Corp. threatened to cut thousands of jobs, including many held by members of its biggest union, if Congress passes a bill lifting limits on its phone rivals, and chided labor leaders for backing the measure.

At issue is legislation that would let Verizon Communications Inc., SBC Communications Inc. and other big local-phone companies stop leasing pieces of their networks at discounted rates to spur deployment of fast Web links.

AT&T;, which relies on lines and switches of competitors to offer service in some markets, has opposed the effort.

AT&T; shares fell 15 cents to $16.50 on the NYSE.