CWA Fights for Worker Rights in AT&T's Lumen Acquisition

The telecommunications landscape is on the brink of a seismic shift as AT&T prepares to acquire Lumen Technologies’ residential fiber business. This $5.75 billion deal, announced on May 21, 2025, will transfer approximately one million fiber subscribers and 4 million serviceable locations across 11 states to AT&T. While the acquisition promises to expand AT&T’s fiber footprint and enhance its 5G wireless capabilities, it has sparked significant concerns among the Communications Workers of America (CWA), the union representing many of the workers involved.

CWA District 7 Vice President Susie McAllister has made the union’s demands clear in a letter to AT&T Vice President of Human Resources Jon Nelson. “CWA will not allow this transaction to proceed quietly. Our members, our customers, our communities, and our contract rights are not for sale. We will fight for accountability, and we demand AT&T engage in meaningful negotiation over the effects of this deal before it is finalized,” McAllister stated.

The CWA’s demands are comprehensive and aimed at protecting the rights and benefits of the workers who will be impacted by the acquisition. These demands include:

1. Successorship and AT&T Employment: All impacted employees must be hired as AT&T employees—not NetworkCo or any other subsidiary—and AT&T must honor and adopt all existing union contracts as the successor employer. This ensures that the workers who have supported these customers for years, including network and customer service personnel, are not left behind.

2. Protect Our Hard-Earned Benefits: AT&T must commit to preserving pensions, retiree healthcare, seniority, and all bargained-for benefits without dilution or delay. This is crucial for maintaining the well-being and job satisfaction of the workforce.

3. Transparency and Negotiations: The CWA expects full transparency throughout this process and immediate, ongoing negotiation dialogue with union leadership. This transparency is essential for building trust and ensuring that the interests of workers and customers are protected.

4. CWA Neutrality for Future Work: The union seeks a written agreement for CWA Neutrality for future work. This ensures that the union’s role in representing workers is respected and maintained.

The acquisition of Lumen’s residential fiber business by AT&T has the potential to significantly impact the job security and benefits of CWA-represented employees. The CWA has highlighted issues with AT&T’s previous subsidiary, Gigapower, which relied heavily on multi-tiered subcontracting and temporary staffing agencies rather than hiring trained, experienced workers. This approach has led to significant issues, including nearly 450 incidents of damage to public rights-of-way and numerous preventable underground utility strikes in cities like Mesa, Arizona, and Bloomington, Minnesota. These incidents underscore the risks associated with a low-road business model that prioritizes cost-cutting over quality and safety.

To mitigate these potential negative effects, several measures can be taken:

1. Ensuring Direct Hiring and Training: The CWA has called for a commitment from AT&T and Lumen to maintain a directly hired, well-trained union workforce. This would ensure that the transition does not result in a loss of jobs or a reduction in the quality of service. As CWA District 3 Vice President Richard Honeycutt stated, "Lumen’s customers deserve a first-class fiber network, and that’s what CWA members deliver. Before this transaction is approved, AT&T and Lumen must commit to maintaining a well-trained, directly hired union workforce and make sure that customers who depend on Lumen’s copper network are not left behind."

2. Maintaining Benefits and Wages: AT&T has a history of providing competitive wages and benefits to its union-represented employees. For example, the company ratified agreements with the CWA in the Southeast and West, covering about 23,000 employees, which include competitive market-based wage increases that exceed projected inflation, comprehensive retirement benefits, and increases in the company’s financial contributions to employee healthcare and wellness. Ensuring that these benefits are maintained during the transition is crucial for the well-being of the workforce.

3. Engaging with Regulators and Elected Officials: The CWA has indicated its intention to engage with regulators and elected officials to address these concerns. This engagement can help ensure that the acquisition process is transparent and that the interests of workers and customers are protected. As CWA District 7 Vice President Susie McAllister noted, "CWA members are going to make sure that regulators and elected officials understand and address our concerns as this process moves forward."

4. Ensuring a Smooth Transition: AT&T has plans to engage an equity partner after closing the Lumen transaction, which will co-invest in the ongoing business. This structure could provide additional stability and resources for the transition. However, it is essential that this process is managed carefully to ensure that the workforce is not negatively impacted.

The potential long-term implications of AT&T’s proposed acquisition on the quality of service and customer satisfaction are significant, particularly given the concerns raised by the CWA regarding the use of subcontractors and temporary staffing agencies. The CWA has highlighted several issues that could impact service quality and customer satisfaction:

1. Reliance on Subcontractors and Temporary Staffing Agencies: The CWA’s review of AT&T’s Gigapower subsidiary revealed that it heavily relies on multi-tiered subcontracting and temporary staffing agencies rather than hiring trained, experienced workers. This approach has led to significant issues, including nearly 450 incidents of damage to public rights-of-way and numerous preventable underground utility strikes in cities like Mesa, Arizona, and Bloomington, Minnesota. These incidents raise public safety concerns and could negatively impact the quality of service provided to customers.

2. Potential Erosion of Service Quality: The CWA has expressed concerns that AT&T’s plans for Lumen’s home fiber business could put the quality of fiber deployment at risk. The union emphasizes the importance of high-quality networks built by experienced union technicians. If AT&T continues to rely on subcontractors and temporary staff, there is a risk that the quality of service could deteriorate, leading to customer dissatisfaction.

3. Customer and Worker Protections: The CWA has called on AT&T and Lumen to prioritize customers and workers over shareholder interests. The union has emphasized the need for both companies to commit to maintaining a directly hired, well-trained union workforce. This ensures that customers reliant on Lumen’s copper network are not neglected during the transition. Failure to address these concerns could result in a decline in customer satisfaction and service quality.

4. Regulatory Scrutiny and Union Advocacy: The CWA intends to engage regulators and elected officials to address these concerns as the acquisition process unfolds. This regulatory scrutiny could lead to additional requirements for AT&T to ensure high-quality service and worker protections, potentially mitigating some of the risks associated with the use of subcontractors and temporary staffing agencies.

In summary, the acquisition of Lumen’s residential fiber business by AT&T has the potential to impact the job security and benefits of CWA-represented employees. To mitigate these risks, it is crucial to ensure direct hiring and training, maintain competitive wages and benefits, engage with regulators and elected officials, and manage the transition carefully. These measures can help protect the interests of workers and customers during this significant change.

CWA Lumen members and retirees can stay informed by signing up for updates at cwa.org/lumenallin.