AT&T says reaches tentative labor contract agreements

Tue Aug 7, 2012 2:47am EDT

Aug 7 (Reuters) - AT&T Inc, the No. 2 U.S. mobile service provider, has reached tentative labor contract agreements with the union in the Southeast region covering billing and utility operations.

The agreements have been submitted to the Communications Workers of America and cover more than 22,000 wireline employees.

The company said that the three-year agreements include wage increases in each year and modest pension increases.

The company is engaged in tough labor negotiations to reduce costs and mitigate the decline in its traditional home business.

AT&T continues to seek agreements in the East and West regions, where wireline contracts expired April 7.