Questions and Answers Please note: While all questions are reviewed, only representative Q&A will be posted on the Web site. Specific questions cannot be addressed in this forum. Questions and answers added August 11, 2010 Q1: A1: When will the new contract take effect? – DS; Metairie, La. Subject to ratification no later than August 20, 2010, this proposed new contract goes into effect July 18, 2010 and expires July 13, 2013. Q2: I am concerned about mention of "increased health care costs for Tier II." What is that referring to? – RC; San Ramon, Calif. Changes to health care costs are outlined in the tentative agreement highlights, available at www.att.com/internetbargaining. A2: Questions and answers added August 10, 2010 Q1: A1: Q2: A2: Q3: A3: When is the first payout for the Success Sharing Plan? Is it November 2010 or November 2011? – WN; Dallas, Texas The first plan year for the Success Sharing Plan is October 1, 2010 to September 30, 2011 with an award year payout in November 2011. What is the total amount that we should receive after the ratification? Is it $500 or $500 plus $1,200? Will that go on the last check for the month? – TJ; Richardson, Texas Employees in titles other than the Customer Assistant (Tier I) title are eligible for a $1,200 lump sum in addition to the $500 ratification bonus. If ratification occurs by August 20, 2010, these payments would be paid as soon as practical following ratification. Can you please elaborate on the National Transfer Plan? What are the participating bargaining units? – KR; Richardson, Texas The National Transfer Plan (NTP) extends and enhances the current Intersubsidiary Movement process and the CWA Surplus Exchange process that allows eligible employees to move to other CWA-represented regional bargaining unit jobs before external hires. Job offers made under the NTP will follow the order of consideration below after regional contract processes: 1. Surplus employees currently on the payroll and surplus employees involuntarily laid off within the last 12months. 2. Current employees requesting transfer to other regions. Under the NTP, eligible employees would have the opportunity to move to any of the CWA-represented regional bargaining units (East, Midwest, Southeast, Southwest, West and Legacy T) and Directory bargaining units. NTP will become effective once ratified by the Internet bargaining unit and all of the CWA Districts participating in 2009 Core Collective Bargaining. Q4: A4: Why are the 2013 changes not detailed in the overview? – JT; Dallas, Texas By “2013 changes” we assume you mean medical plan. In 2013, all employees will move to the Tier I level of medical benefits. The medical plan changes for 2013 are not detailed in the tentative agreement highlights because the contribution, deductible and out-of-pocket maximum amounts are not known at this time. The design however does provide for lower out-of-pocket maximums for employees making less than $50,000. There are also options to decrease the out-of-pocket maximums, regardless of your salary, by paying additional monthly contributions. The Tier I level of benefits in the AT&T Medical Plan is designed to qualify participants to receive the tax advantages of a Health Savings Account (HSA). To maintain this qualification, the plan must meet the Internal Revenue Code (IRC) requirements for deductibles and out-of-pocket maximums, which are established annually based on indexing specified in the IRC. Therefore, deductibles and out-of-pocket maximums under the Plan may change annually depending on the regulations released by the IRS. For a full explanation, please see section 26 USC 223(g) of the Internal Revenue Code. Additionally, 2013 contribution amounts are subject to annual adjustment based on new premium equivalent rates. More information on the provisions of the AT&T Medical Plan can be found in the Summary Plan Description. Questions and answers added August 9, 2010 Q1: A1: I am under the Customer Assistant title. What is the monthly contribution for “Individual +1” under this agreement? In the highlights it states there will be no change, but what was it under the old agreement? – PH; Little Rock, Ark. Under the terms of the tentative agreement, there are no changes to the current provisions of the medical plan for Customer Assistants (Tier I). The 2010 contributions for Individual + 1 are $45 per month. Contribution amounts are subject to annual adjustment based on new premium equivalent rates. Q2: A2: Q3: A3: Q4: A4: Q5: A5: If the contract is ratified by August 20, 2010, when will the bonuses be distributed? – SO; Reno, Nev. The $500 ratification bonus would be paid as soon as practical following ratification. In the proposed contract, would part-time employees be covered under the new tuition agreement for Customers Assistants or would it only be available to full-time employees? – CQ; Las Vegas, Nev. The proposed new contract extends the current tuition aid program to employees in the Customer Assistant title. The eligibility for participation is the same for all employees covered under the National Internet Contract. One of the eligibility requirements is that an employee must be full-time. Do you have to meet the same three metrics each month for three months to get the CAPP award, or can it be any combination of metrics each month for 3 months, just as long as the total metrics met equals three? – DW; Goldsboro, N.C. The Customer Assistant Pay Plan (CAPP) is a quarterly plan. Therefore, employees need to meet the defined quarterly metrics, which will be communicated before the beginning of every quarter. Is CAPP awarded every three months, every six months, or once a year? – DW; Goldsboro, N.C. The Customer Assistant Pay Plan (CAPP) is a quarterly payment plan . Questions and answers added August 6, 2010 Q1: A1: I have not seen anything on what the U-verse Dispatchers, Internet Assistants and Surveillance Technicians (as well as other Non-Customer Assistants) are getting. Can you please clarify? – various employees; various locations As noted in the highlights document under Non-Customer Assistant (Tier I) titles, U-verse Dispatchers, Internet Assistants, Surveillance Technicians and all other Non-Customer Assistant (Tier I) titles in the bargaining unit will receive general wage increases (GWI) annually. The increases to be applied to the wage schedule are: Year GWI Date Applied 1 2.75% July 18, 2010 2 2.25% July 24, 2011 3 2.5% July 22, 2012 In addition, all employees will be eligible to participate in the AT&T Retirement Savings Plan, Success Sharing Plan and for the additional improvements noted in the highlights document available at www.att.com/internetbargaining. Q2: A2: Q3: A3: Q4: A4: Q5: A5: When do we cast our vote? When were the ballots sent out and when should they be returned? – TT; Birmingham, Ala. The locations, time and processes for distributing and returning ballots will vary by local union; therefore, please contact your local union representative for details. What do employees need to do to get the ratification bonus? – SB; Goldsboro, N.C. If the agreement is ratified by August 20, 2010, all employees on payroll at the time of ratification, regardless of job title, will receive the ratification bonus. Will employees be advised by AT&T at the beginning of each quarter, what metrics would need to be met? Will the union be involved in making sure that AT&T does not change the metrics to be met mid-quarter? – LP; Las Vegas, Nev. Yes, employees will be advised prior to every quarter what the metrics are for the Customer Assistant Pay Plan (CAPP). The Union and the Company agreed as part of the bargaining process that the metrics would not change mid-quarter and both parties have a long-standing history of bargaining in good faith and living up to agreements made in the bargaining processes. If the tentative agreement is ratified, when would be the first quarterly bonus be paid? – SF; Goldsboro, N.C. The quarterly Customer Assistant Pay Plan (CAPP) would begin in the fourth quarter of 2010 and the payout would be made as soon as practical following the end of the quarter. Q7: A7: If Customer Assistants are topped out in pay, do they have to wait until 2012 or the last year of the agreement before you can get a raise? – TM; Louisville, Ky. By “topped out in pay”, we assume you mean they are at the top of their wage progression. For these employees, there are additional, significant compensation options for them in this tentative agreement. For example, those employees in the Customer Assistant title who are “topped out in pay” will receive a lump sum of $300 payable in 2011 and a 2 percent general wage increase in 2012. They also have the opportunity to receive additional cash payments up to $7,700 over the life of the agreement under a new quarterly Customer Assistant Pay Plan (CAPP) as detailed at www.att.com/internetbargaining. And, if ratification of the tentative agreement occurs by August 20, 2010, all employees on payroll on the date of ratification will also receive a ratification bonus of $500. The nearly three quarters of employees in the Customer Assistant title who are not at the top of their wage progression table will receive additional significant annual increases due to moving to a higher rate of pay every six months. When taking progression into account, the average Tier I employee on a step of progression will realize an average wage increase of approximately 33 percent over the life of the agreement. Questions and answers added July 30, 2010 Q: A: Who will receive the ratification bonus? All employees in the bargaining unit who are on the payroll at the time of ratification will receive the bonus. Q: A: What is the deadline for ratification? To receive the ratification bonus, employees must ratify the contract by August 20.