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1983 AT&T strike

US telecommunications strike

  • 7 min read
  • 3 chapters

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Through Monopoly

The strike had a low impact on telephone services due to increased automation in the industry. Scattered incidents of sabotage served to keep strikebreakers in a state of crisis management over the course of the dispute.

The unions and AT&T negotiators both made concessions to reach a tentative agreement on August 28. Short of their initial goals, telecommunication workers were promised a 5.5% wage increase during the first year of the resulting contract and a 1.5% increase for the following two years.

Background

The Communication Workers of America (CWA), the largest of the three unions involved in the strike, represented about 525,000 workers in the telecommunications industry at the time. The CWA previously struck AT&T in 1971. The two other unions involved in the strike, the International Brotherhood of Electrical Workers (IBEW) and Telecommunications International Union (TIU) represented about 100,000 and 50,000 workers respectively.

Divestiture of the Bell Operating Companies

Prior to the strike, AT&T was a regulated monopoly that controlled telecommunications infrastructure in the United States. In 1983, AT&T was divesting from its subsidiaries, breaking it into 22 local operating companies. This divestiture was set to formally occur on January 1, 1984. Among those responsible for overseeing the divestment were the managers of AT&T subsidiary Bell System.

As a monopoly, AT&T was able to subsidize certain services it provided by placing an artificial premium on others, like long-distance calls. Following its divestment and restructuring, AT&T expected to face competition that would undercut it on its premium services. This competition put downwards pressure on AT&T, leading it to reduce its workforce and reexamine worker salary and benefit packages. The CWA wanted to ensure its prior gains would be retained through the divestment.

By the time the strike took place, 97% of basic phone services offered by AT&T had been automated, significantly reducing the leverage striking workers had over the company. During this time, most calls were dialed directly. One area where telecommunications workers retained leverage was in AT&T's divestment, as among the strikers were the clerical workers responsible for carrying out the process.

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