The strike involving more than 17,000 AT&T (T) workers in nine southeastern U.S. states has entered its third week, following the collapse of federal mediation efforts. The Communications Workers of America (CWA) union, which represents AT&T employees, has accused the company of using the mediation process to delay negotiations and of engaging in unfair labor practices.
AT&T is a telecommunications conglomerate that provides wireless communication and internet services.
Union Demands Wage Hike and Benefits
It is worth highlighting that the strike is centered on several key issues, such as rising healthcare costs. Additionally, junior employees have complained of being overburdened with unpredictable workloads due to AT&T’s tiered-title system.
Thus, the CWA is demanding significant wage increases, better benefits, and job security for its members, who work in various roles such as technicians, customer service representatives, and network support staff.
The ongoing strike has caused service disruptions for AT&T customers in affected areas due to the company’s use of inexperienced replacements for striking workers. The CWA reports that this has led to network outages, extended wait times, and safety concerns.
CWA’s Withdrawal Causes Uncertainty
Importantly, the union’s withdrawal from mediation has added a new layer of uncertainty to the ongoing strike. Without the involvement of a neutral third party, it remains unclear how negotiations will proceed and whether a resolution can be reached.
Is AT&T a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about the stock. AT&T has a Moderate Buy consensus rating based on 11 Buys and four Holds. The analysts’ average price target on T stock of $21.71 implies a 6.27% upside potential from current levels. Shares of the company have gained 27.69% so far this year.
