Unions voice concerns about AT&T split

(Telephony) The Communications Workers of America and the AFL-CIO conducted a conference call yesterday to express their opposition to the proposed breakup of AT&T.

AFL-CIO helps manage 1500 union-sponsored pension funds that hold about 25 million shares of AT&T and attendees of the call held about 20% of AT&T stock outstanding.

Both the AFL-CIO and CWA oppose the breakup on the grounds that it will damage shareholder value in the long-term by avoiding business issues that the company must address, devaluing the AT&T brand, and make execution of bundling more difficult.

“AT&T doesn’t need a financial restructuring but needs to refocus on the technical execution of its bundling strategy,” said an AFL-CIO spokesman in a separate interview. “Everyone in the industry is pursuing a bundling strategy. That’s what customers demand. It’s cheaper and more efficient.”

According to an AT&T spokesman, fears that the breakup will harm the company in the long run are misplaced.

“Our belief is that returning broadband and wireless to independent operations is a splendid idea and splitting the consumer and biz operations which internally have been separated for more than a quarter of a century…is an idea long overdue,” he said. “We’re convinced that the wisdom of that will be proven in the days ahead.”