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AT&T/T-Mobile Merger: The Best Chance for Job Security for T-Mobile Workers

If you repeat a made-up falsehood over and over again, will reasonable people start to believe it?

That's what the critics of the AT&T/T-Mobile merger are hoping. They've manufactured a fact, claiming that the AT&T/T-Mobile merger will lead to 20,000 layoffs of T-Mobile workers. The problem is: they are just plain wrong. The proposed AT&T/T-Mobile merger is good for workers and good for job creation.

Certainly, with unemployment hovering at a stubborn 9 percent, the impact of the proposed merger on jobs today and in the future should be a top concern of policymakers.

Let's look at the so-called evidence the critics put forward.

1.  They say: AT&T has cut 100,000 jobs over the past decade.

The Real Story: Job loss has been on the wireline side of AT&T; the company lost almost half its landlines when customers cut the cord or switched providers. CWA is not defending job cuts at AT&T, but critics need to get their facts straight. On the wireless side of AT&T, there has been very little drop in employment despite multiple mergers. In 2002, there were 70,000 employees at AT&T Mobility and its predecessor companies. Today, there are 67,000 employees at AT&T Mobility. Certainly no evidence to point to massive wireless job cuts at AT&T.

2.  They say: Mergers always lead to layoffs.

The Real Story: As we have in the past, CWA will both negotiate and enforce agreements with AT&T to ensure that no AT&T Mobility or T-Mobile occupational workers will lose their jobs. In CWA's long experience in working with AT&T on mergers and acquisitions, not one CWA-represented employee has ever lost his or her job due to that fact.

3.  They say: T-Mobile workers will be better off if regulators reject the merger.

The Real Story: There is no future for an independent T-Mobile. Because T-Mobile is losing customers, with declining revenues and profits, its parent company put it up for sale. There were two bidders: AT&T and Sprint. Sprint outsources and offshores much of its customer service work and network management. It is notorious for its violation of workers' rights. In contrast, AT&T is a financially strong, respects workers' rights (it is the only unionized wireless company), and has a contractual obligation with CWA to eliminate outsourced work before laying off employees.

4.  What they don't say: Investment drives job creation.

The Real Story: AT&T has committed to invest an additional $8 billion — over and above its typical $6-9 billion annual wireless capital expenditure — to build out high-speed broadband to virtually every corner of the country. The Economic Policy Institute estimates this will create 96,000 jobs. Critics dismiss this important merger-related benefit, claiming that stand-alone T-Mobile would have invested $8 billion. But T-Mobile's parent Deutsche Telekom announced in January of this year that it would stop funding T-Mobile network investment. An independent T-Mobile would not put the job-creating capital into infrastructure that AT&T plans to do. Moreover, AT&T's planned near-universal, high-speed wireless broadband deployment will spur the growth of Internet-related jobs throughout America, closing the digital divide, and providing a needed lifeline to rural America.

The full report is available here: AT&T/T-Mobile Merger Creates Jobs for the U.S. Economy and Job Security for T-Mobile Workers

AT&T / T-Mobile Merger Creates Jobs For The U.S. Economy And Job Security For T-Mobile Worker (CWA)

Research Paper Provides Real Story Behind AT&T/T-Mobile Merger (Speed Matters)

Ericsson to serve US clients using 'competent' workforce in India (The Economic Times)

Sprint focuses on keeping customers happy so they don't leave (LA Times)

The Jobs Impact of Telecom Investment (EPI)

T-Mobile Transcript. January 20, 2011