
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 31, 1995                   TAG: 9505310081
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

RETIREE HEALTH CARE STALLS TALKS

Health care continued to divide AT&T Corp. and its two unions Tuesday, but there was no threat of a strike by the telephone giant's 110,000 employees seeking a new contract.

``There's no talk of a walkout now,'' said Jeffrey Miller, information director for the Communications Workers of America, which represents 90,000 AT&T workers.

Miller and AT&T spokesman Herb Linnen agreed that health care was the main obstacle in the talks between the company and the CWA and the International Brotherhood of Electrical Workers, which represents another 20,000 employees.

``If we can get that resolved, we can move on to other things,'' Linnen said.

Linnen reported ``good progress'' Tuesday on health benefits for active employees. Resolution of that provision would permit negotiators to resume talks on the more contentious issue of coverage for recent retirees, he added.

AT&T wants 22,000 union employees who retired after March 1990 to share health care expenses, which cost the company $622 million in 1994. The 66,000 CWA and IBEW workers who retired before then would not be affected.

Wage, pension and union security issues also are unresolved in the talks, which began April 3.

Linnen said the company has proposed a 7 percent wage increase over three years. Average wages under the old contract ranged from $435 a week for account representatives to $807 a week for equipment installers.

Although union members have authorized a strike, talks have continued since the midnight Saturday expiration of their contracts. Linnen said the company was operating as usual Tuesday after the holiday weekend.

Much of AT&T's service is automated, and the company has said it will use management personnel where needed in the event of a strike.

But Miller insisted that wouldn't be necessary, at least not soon.

``I think we would adopt a strategy of applying pressure, in kind of an escalating fashion, through various protests, like job actions in the workplace or informational picketing,'' Miller said.

``We would probably go through that, and then consider ... selective strikes or a nationwide strike. But that is something that would be worked out over several days.''

by CNB