Union Filed Complaint Against AT&T for Info on How Company Will Use Tax Windfall

By:
Chris Gaetano
Published Date:
May 16, 2018
MoneyMagnify

AT&T has become the subject of a complaint by the Communication Workers of America, a union that represents the contracts for over 14,000 workers at the company, seeking disclosure of how exactly the telecom giant will spend its multibillion-dollar windfall generated by the recently enacted Tax Cuts and Jobs Act, according to Accounting Today. The law brought with it a new 21 percent corporate tax rate, dropping from a nominal 35 percent, which led AT&T to say in January that it expects an additional $3.4 billion in free cash flow this year. While AT&T said it planned to use at least some of this cash on bonuses, medical benefits, charitable contributions and investments, the union wants more information on how specifically this will all play out. It complains that, according to U.S. law, companies must share with the union any information that is germane to the collective bargaining process, which the union believes includes plans for how, specifically, AT&T will spend this extra cash. A lawyer for  the union said that it wants to make sure that the promised commitments are worked into the collective bargaining agreement, so that it can respond intelligently to claims made by the company. AT&T, for its part, said that tax policy has never been part of collective bargaining agreements and that the information the union seeks is immaterial. 

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