AT&T can easily pay for everything CWA District 9 is asking for at the bargaining table.
In a letter sent out to employees today, AT&T CEO John Stankey announced the companies first quarter earnings. Stankey is quoted as saying:
Our results show strong and durable trends, reflective of consistent and effective execution against our strategy to be the best connectivity provider.’
Stankey continues in his letter to employees, praising the amount of growth and probability the company has seen in the first quarter of 2024;
Growth in our core 5G and fiber business is strong. We recorded our 17th straight quarter of 200,000+ AT&T Fiber net adds and had solid growth in postpaid phone net adds. Even more impressive, we achieved our lowest Q1 postpaid phone churn ever on record. We have led the industry in postpaid churn for 11 of the last 13 quarters. These results strengthen credibility in our converged value proposition, further demonstrating that where we have fiber, we can win more wireless customers who will choose AT&T and stay with us.
Our free cash flow, a closely watched financial metric, also shows how efficiently and profitably we are growing. The business generated 3x as much cash flow as we did in the first quarter of last year. We are also making steady progress in our commitment to reduce our debt. Both indicate we are growing the right way and becoming more efficient and effective in everything we do.
Members of CWA, please read the bold segments of the quote above, and then read it again. AT&T as a company is booming with new customers, and it is all because of you!
After detailing the amazing growth and profitability of the company, Stanke drops the hammer and says:
Momentum in these connectivity growth areas is offsetting legacy declines. Across the industry, we see business customers transitioning away from legacy voice to mobile and cloud-based services. Despite these headwinds, our long-standing, deep relationships with our business customers mean we are capturing revenue in 5G and FirstNet, while pivoting to future-focused products like fixed wireless, and segments like small and mid-markets.
The good news is we have done this before, managing through similar dynamics and secular headwinds in Consumer Wireline. The Business team is focused on a winning strategy with 5G and fiber connectivity. I have confidence in their abilities as we continue to transition through legacy pressures.
There. The CEO has actually declared the copper network dead. Being so open about this fact, along with AT&T applying with the California Public Utilities Commission to have the option of turning of dial tone in the state, should be raising all of the alarm bells for CWA members.
As AT&T courts their shareholders and board members and paints them a beautiful picture of how plans are actually proceeding, don’t let them turn around and tell our CWA District 9 bargaining team that they can not afford to give us decent raises to cover the cost of living. We need to stand united and fight for what we have earned!
