AT&T®, the Dallas based Telecommunication Company is planning to terminate 713 employees. A union representing the employees of AT&T® filed a suit in the US district court to object this move from the telecom company. They union asked the Texas court to block the layoff of 713 employees.
The Telecommunication employees of America filed the lawsuit on Friday in disagreement with the company’s layoff policy. In the lawsuit, the employee union says that AT&T® is taking this step only to recruit cheap contract workers or to ship the job abroad. The accused are AT&T Services®, Southwestern Bell Telephone Co., and Direct TV®. In addition, the union also went on to file a charge with the US National Labor Relations Board.
The mass dismissal, which includes 152 technicians in the installation department of TV and internet services, will affect the workers of Oklahoma, Missouri, Arkansas, and Texas. However, the AT&T® company spokesman, Marty Richter rejected all the claims in the lawsuit and said, “The fact is the allegations in the lawsuit are baseless “. He further stated, “We comply with the terms of our collective bargaining agreements and did so in this case”
According to Richter, the company took this step because of the advanced technology that is more efficient for the company. Besides, the demand by their customers for new services is also a reason for the mass termination. Marty Richter also said that even though they are dismissing the employees, they will help the technicians to find jobs in other branches of the company across the globe. He also justified that even after such a mass dismissal, the company has more than thousands of workers that it had two years ago.
The planned downsizing happened as AT&T® depends more on the latest automation technologies and as the company is trying to use the cloud-based software instead of copper wires for communication. Furthermore, the company also tried to launch a reinforcement effort to teach new digitally focused techniques like coding to the employees. In spite of this fact, the analysts and executives of AT&T® had predicted about this cut down at that time itself.
The layoffs became worse when the company tried to justify themselves by commenting how it will lower the corporate tax rate to 21 percent from 35 percent. Additionally, when the bill was signed, the AT&T® CEO Randall Stephenson promised a special bonus of $1000 for more than 200,000 workers. He also announced that the company would invest an additional $1 billion to create thousands of job opportunities in 2018.