September 15, 2017

Subject: Company – Declared Surplus

Mr. William F. Henderson, IIIMs. Tonya Moore

President, CWA Local 1298CWA International Staff Representative

3055 Dixwell Avenue193 State Street

Hamden, CT 06518North Haven, CT 06473

Dear Bill and Tonya,

As provided for in Article VII of the Basic Contract, this letter will serve as the Company’s formal notification to the Union as to the existence of a surplus condition, effective September 15, 2017in the company-defined entities and job titles listed in the attachment. The Company anticipates that there will not be enough jobs available to offer to surplused employees and therefore intends to layoff bargaining unit employees. The Company and the Union have discussed the definition of the “pools” within which layoffs are to be affected as reflected in the attachment.

The Company will provide a Guaranteed Job Offer as provided for in the Commitment of Employment Security outlined in the 2016 Labor Agreements to those employees designated for layoff who were hired prior to April 8, 2012.

Effective September 15, 2017the Company will offer the Enhanced VoluntarySeverance Plan (EVSP) to all incumbents in the impacted pools within the entities listed in Attachment 1. This offer will be available until Noon on ThursdayOctober 5, 2017(see attached EVSP package). Employees electing to leave the Company with EVSP during this offer period must be off the payroll on such date as determined by the Company but no later thanTuesday, Monday November 6, 2017.

The Company will continue to implement the remaining provisions of Article VII in order to relieve this current surplus situation and expects to conclude this process by

Monday, November 6, 2017.

Regards

John

Attachments

Attachment 1

Co-Defined Entity / EEO JG / JOB TITLE / Total
NETWORK SERVICES TECHNOLOGY OPERATIONS / C12 / Tech Analyst - NOC / 5
E16 / Network Administration Associate / 4
Network Translator / 1
E17 / General Office Associate / 1
F08 / Customer Service Technician / 1
Network Tech - Electronic / 9
TOTAL / 21
Co-Defined Entity / EEO JG / JOB TITLE / Total
PURCHASING & LOGISTICS / E16 / Logistics Activities Analyst - PIE / 1
TOTAL / 1

Attachment 2

Attachment 1

September 15, 2017

TO:Impacted Bargaining Unit Employees

SUBJECT: Company-Declared Surplus – Enhanced Voluntary Severance Plan (EVSP) Offer

The Company has formally notified the Union that a surplus condition exists for the indicated titles and company-defined entities listed in Attachment 1. The Company has also notified the Union of its intent to introduce layoffs to relieve this surplus condition (Article VII). The Company and the Union have discussed the definition of the “pools” within which layoffs are to be effected; also reflected in Attachment 1.

In order to initiate the 1st step in the process to alleviate this surplus, and in compliance with Article VII of the Contract, we are sending this notice to all bargaining unit employees on each of the titles within the affected pools (see Attachment 5) to offer the opportunity to voluntarily leave the Company with the Enhanced Voluntary Severance Plan (EVSP) Offer.

The EVSP provides for lump sum severance payments (less appropriate tax withholdings) to eligible employees, based on completed years ofnet credited service, equivalent to up to one year’s pay to employees who apply and are approved by the Company to leave with the EVSP.

In accordance with the terms of the 2016 Collective Bargaining Agreement eligible employees may elect to retire and receive a pension benefit enhanced buy the amount equal to their otherwise applicable EVSP payment.

For employees who are not retirement eligible the EVSP also includes six (6) month’s continuation of the Company’s contribution to your Medical coverage (as long as you continue to pay your portion of the premium, if applicable).

To be eligible for the EVSP you must meet the following criteria:

  • Regular employee and
  • Active, on approved Short Term Disability Benefits and/or on any approved Leave of Absence with a re-employment guarantee and
  • Have at least one (1) year of net credited service and
  • Currently employed in a company-defined entity and on a title that is included within the impacted pools identified in the September 15, 2017 Formal Notice of a Company declared surplus and its intent to introduce layoffs of bargaining unit employees as provided for in Article VII of the 2016 Labor Agreements.

NextSteps:

  • Complete the attached application (Attachment 4).
  • Forward to Labor Relations, via fax to 704 548-6433.
  • Applications must be received at Labor Relations by 12:00 P.M. (Noon) Thursday, October 5, 2017

Page 2

PLEASE NOTE:

  • All employees approved for EVSP must be off the payroll by end of day (Monday), November 6, 2017 or on a date specified by the Company.
  • Requesting the EVSP offer does not guarantee approval to receive the EVSP.
  • Approvals of applications for the EVSP may be subject to limits to be set by the Company.

I ask you to give careful consideration to this offer of EVSP. For many of you, this offer may afford you the opportunity to pursue other interests outside of AT&T or perhaps retirement. If you are contemplating retirement, I encourage you to contact the Fidelity Service Center to obtain your pension amounts to factor into your decision. The Fidelity Service Center can be contacted at 1-800-416-2363 or at:

If you have any questions concerning this EVSP offer, please direct them to your supervisor. I wish you the best in your decision and please remember EVSP forms must be returned to Labor Relations by 12:00 P.M. (Noon) Friday, October 5, 2017.

Sincerely,

John

Attachments:

Attachment 1Surplus Entities, Pools and Titles

Attachment 2Questions & Answers

Attachment 3EVSP Payment Table

Attachment 4EVSP Application

Attachment 5Job Pools

Attachment 1

Co-Defined Entity / EEO JG / JOB TITLE / Total
NETWORK SERVICE TECHNOLOGY OPERATIONS / C12 / Tech Analyst - NOC / 5
E16 / Network Administration Associate / 4
Network Translator / 1
E17 / General Office Associate / 1
F08 / Customer Service Technician / 1
Network Tech - Electronic / 9
TOTAL / 21
Co-Defined Entity / EEO JG / JOB TITLE / Total
PURCHASING & LOGISTICS / E16 / Logistics Activities Analyst - PIE / 1
TOTAL / 1

Attachment 2

EVSP Q&A's:

  1. Q – If I am eligible and my EVSP application is approved, how soon will I receive my payment?

A – Severance payments are paid coincident with the normal bi-weekly pay schedule, and will be paid as soon as practicable following your termination of employment. Both your last regular paycheck and severance check will be "live" checks, not direct deposit, and will be mailed from St. Louis to the home address you have on file with payroll. Any questions should be directed to your supervisor and/or payroll person.

  1. Q. What will the withheld tax rate be for the EVSP payout?

A – Taxes will be withheld at the standard flat rate of 39.35% (25% Federal Income Tax;

7.65% FICA/Medicareand 6.7% State Income Tax).

  1. Q – If I apply for the EVSP, will I be guaranteed approval to leave?

A – EVSP applications are not guaranteed approval.

Based on an evaluation of the needs of the business and the number of applicants by title from each department, the respective department representatives will advise the Director – Labor Relations of the need to limit approvals of applications for the EVSP from their respective departments. The Director-Labor Relations will in turn notify the Union if limits have been established. If the number of applications for the EVSP exceeds the departmental and title limits established above, approvals will be granted in seniority order (most senior first) by title within each department up to the established limits.

  1. Q – If I am eligible and approved to leave with the EVSP, can I leave before Monday,November 6, 2017?

A –All release dates will be established by your Department to accommodate business needs.

  1. Q – Can I apply for the EVSP if I am out on disability benefits?

A – Yes. If you are eligible you may apply for the EVSP. If your application is approved while you are out on sickness or accident disability benefits, severance benefits cannot be paid to you unless your treatment provider provides documentation to the AT&T INTEGRATED DISABILITY SERVICE CENTER releasing you to return to work.

  1. Q – Will the EVSP severance payment be on the “pink slip”? A – Yes.
  1. Q. What will be the coding on the “Pink Slip” for “reason for leaving”?

A.The reason for leaving will be indicated as “Lack of Work”. All unemployment eligibility questions should be referred to State Unemployment offices. The Company will not challenge determinations made by State Unemployment.

  1. Q – What happens if the EVSP forms are not returned by the deadline?

A – We will assume that you have declined the EVSP.

  1. Q – If I am eligible and approved for the EVSP, will I be paid for unused 2017 vacation?

A – Yes, employees who have worked during 2017 and exit the Company via the EVSP will be paid for any unused vacation days. Employees who exit the Company are not paid for any unused EWD’s.

  1. Q – How long are COBRA benefits available for employees who are not retirement eligible?

A – COBRA benefits are available for eighteen (18) months, and the Company will continue to pay the Company contribution to Medical coverage (as long as the employee continues to pay their portion of the premium, if appropriate) for the first six months of the COBRA period. This extended Company contribution does not apply to COBRA for Dental or Vision.

  1. Q.- In terms of the EVSP how is the date determined for NCS?

A - Your last day on the Payroll.

  1. Q.– I have less than one (1) year of NCS, am I eligible for EVSP?

A –No. You must have completed at least one (1) year of NCS to be eligible for EVSP.

  1. Q. – How do I elect to retire and receive a pension benefit enhanced by the amount otherwise equal to the applicable EVSP payment?
  1. If eligible, an employee may elect to receive a pension benefit enhanced by the amount otherwise equal to the applicable EVSP payment by indicating they desire to do so on the EVSP application form.

Attachment 3

Enhanced Voluntary Severance Plan

(EVSP)

(in effect from September 15, 2017 until 12:00 P.M., Thursday,October 5, 2017)

  • Includes 6 month’s continuation of Company contribution to Medical coverage (as long as employee continues to pay their portion of premium, if appropriate)
  • Lump Sum Severance Payment as follows:

Completed Yrs. Of NCS / Amount of Lump Sum
Payment
(in weeks of Base Pay)
20 and over / 57 weeks
19 / 46 weeks
18 / 42 weeks
17 / 40 weeks
16 / 38 weeks
15 / 36 weeks
14 / 34 weeks
13 / 32 weeks
12 / 30 weeks
11 / 28 weeks
10 / 26 weeks
9 / 20 weeks
8 / 18 weeks
7 / 16 weeks
6 / 14 weeks
5 / 12 weeks
4 / 8 weeks
3 / 6 weeks
2 / 4 weeks
1 / 2 weeks

Attachment 4

EVSP Application

Bargaining Unit Employees Impacted by September 15, 2017 Surplus Notification

Please Print:

______

Last Name; First Name; Middle Initial Employee ID (PERN) User ID NCSD

______

Job Title Department

______

Supervisor’s Name Supervisor’s RC

I have read the Description of the Enhanced Voluntary Severance Plan offer and have reviewed the estimated amounts payable under Attachment 3. This offer is available to employees in impacted pools within the company-defined entities who have identified surplus titles as of September 15, 2017.

Expiration of Election Period: 12:00 P.M. (Noon), Thursday, October5, 2017

Responses must be faxed to 704-548-6433

Please check:

I elect to accept the provisions of the Enhanced Voluntary Severance Plan (EVSP) offer. I understand that my election is irrevocable. If this application is approved, my preferred last day on the payroll is: ______,

I elect to receive the pension benefit enhanced by the amount equal to the otherwise applicable EVSP payment.

My actual last day on the payroll will be: ______

(Department Approved Date)

______

*Employee’s Signature Date Work Tel# Company Address

______

*Supervisor’s Signature Date Work Tel# Company Address

Supervisor: Return by 12:00 P.M. (Noon)Thursday, October 5, 2017 to:

Labor Relations

Fax : 704-548-6433

Labor Relations Action:

Application Approved

Not Approved

*Signatures Required
Attachment 5

Article VII “Pools”

Network Services Technology Operations

C12 / Tech Analyst - NOC
E16 / Construction OFC Admin
Maintenance Administrator
Network Admin Associate
Network Translator
E17 / General Office Associate
F08 / Customer Service Technician
Network Tech – Electronic

Purchasing & Logistics

E16 / Logistics Activities Analyst - PIE