Revisiting The Communication Workers Of America Claim Of 100,000 New Jobs From T-Mobile, AT&T Deal

Earlier today we ran a story regarding the Communication Workers of America union claim that the AT&T, T-Mobile “merger” would create 100,000 jobs. Now we’re compelled to revisit that story thanks to Karl Bode from DSLReports who pretty much turned the words of the CWA upside down and inside out.

Most of us recognize that the CWA has an ulterior motive as they see the potential for thousands and thousands of new members and so they’ve sided with AT&T quite feverishly. As Karl reviewed this mornings claim of 100,000 new jobs being added he was able to determine that number was both inaccurate and misleading. The number itself was pulled from an EPI report from last summer that counted “potential job years” which was defined as “one year of employed” and not actual jobs.

The report also never claims it would create jobs, which is important because the opposite is expected to happen. The redundant positions at T-Mobile along with retail location closings could mean thousands of workers could lose their jobs.

So let’s turn our attention to the CWA claim from this morning again and recognize that these numbers are again, from the very same EPI report that generally explored the relationship between investment and job creation. More importantly, the authors of the report have said that the report should be taken generally and doesn’t claim any job creation from the AT&T, T-Mobile deal and doesn’t check any of AT&T’s claims.

The job creation numbers that are cited are entirely based on AT&T’s claim that network investment will increase in response to the T-Mobile deal, which isn’t accurate. AT&T is telling regulators the deal will increase network investment by $8 billion while telling investors it will reduce investment by $10 billion over 6 years. So if T-Mobile ceases to exist and overall investment is reduced, what happens to the CWA claims?

The fact of the matter is that the CWA is making false claims in order to help sell the T-Mobile deal as support wanes and AT&T faces a Department of Justice lawsuit.

Thanks Brett and Karl for pointing this out!

DSLReports

Read the full report from the CWA here. 

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  • http://www.facebook.com/sungc1 Sung Cho

    Thank you!!!! they are just trying to persuade the sheep with propaganda

  • Anonymous

    PERFECT picture, David!  lol

  • http://twitter.com/TuckerPeterson Tucker A. Peterson

    Who would have thought that a Union would lie?

    • 123

      I laughed so hard when I read this. Good won :D

      • Moo

        haha – good one. ignoramus

  • PhantomWraith

    That was exactly what I was thinking when I saw the original post

  • Mad_philosopher

    by the end of 2012 there will be NO T-Mobile no matter how this plays out…

    • CrazyMayan

      Yes, we’ve been telling you gringos that for several hundred years…

    • Hark

      You have no way of knowing that

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      But there would still be 4 national wireless carriers. Which is what the whole point on this issue.

    • Mad_philosopher

      there may be four national wireless carriers but one will not be t-mobile. DT Plan B is to sell off company in pieces to highest bidder! real talk…

      • Hark

        They have said they have a plan b and this is not it. Why are you making stuff up?

  • Worried Software Developer

    I’m incredibly mixed in my feelings about this deal. As a T-Mo employee, I want a job. But I also stand to make a fairly nice chunk of change if AT&T manages to get the deal to go through. But I don’t want to be unemployed and looking for work again (job searching sucks). But I like fat wads of cash!

    Basically, should the deal NOT go through, T-Mobile will face a very uncertain future. We are owned by a parent company that (thanks to this deal) we’ve found out wants to sell us to the highest bidder. Never mind that T-Mobile operates entirely in the Black, and provides over 25% of the yearly revenue for DT. In addition to that nifty fact, we add that T-MO has hemmorhaged customers like a water balloon stuck with a Ginsu. Oh, and let us not forget that attrocious Elf escapade Carly has starred in recently. Egads. That just can’t be good for the ol T-Image. So, should the deal not go through, T-Mobile faces a future that is dire and frought with peril. Will we stand the test of time, or will we fade away as quick as… What was their name… the twin chicks who lip synched “Girl You Know It’s True” and “Blame It On The Rain” (I know everyone says they were dudes, but I’m not buying it!)… Oh yeah. Milli & Vanilli. Those chicks.

    However, should the deal go through, AT&T will only accquire a small piece of the pie they are hoping to feast on – well, ok, not a SMALL piece, but they won’t leave the table as full as they were planning to when they entered what they thought was an all-you-can-eat buffet. And 40,000 T-Mobile employees will be out on their respective @$$3$. Joy.

    • Mad_philosopher

      basically if the deal doesnt go through, t-mobile will be divested completly and the employees with get NOTHING! Either way t-mobile employees are out of a job. EIther we get severance or we get nothing. Not a fan of at&t but pay me or pay me no attention!

      • CwachampsPO

        Actually cwa could negotiate for us to be part of the sale, or get better severance plan. DK calls the shots for tmo us…since cwa and verdi formed TU they would have A LOT of leverage in taking care of the us tmo worker

        • Guest

          It seems everyone is forgetting about the thousands of people employed by indirect dealers. They have no union to fight for them. If TMO sells and AT&T says no license for you a lot of those people are out of jobs with NO severance package to speak of. Hell the indirects should just get together get a loan from uncle sam and buy tmo us if dt wants to ditch it so bad.

      • Hark

        Tmobile will not be divested, why are you making up nonsense?

    • Jimmy

      I make $30+ and hour and my retention bonus would be $1,500 (half payable now, half 12 mo. after the deal is complete).   Fantastic, I could buy a new television of pay a month’s mortgage with my “fat wad” of cash.   I was flat insulted by the retention bonus amount.

  • Ryan Dawald

    man what a bunch of BS, lies on top of lies

  • Lfgonzal

    People if the deal fails, there is hope for T-Mobile to stay in the US, another option is for DT to sell to an outsider mobile company from Europe, Canada etc.. that want to enter the US mobile business and ill be happy with either one.

    • Gmobile357

      It will be broken up and sold to other carriers. Dk needs the cash. Humm promised to cut a billion dollars. That’s why the service sucks, phones are overpriced…and call centers are downsizing. CWA can negotiate a better package for employees. It sucks that DK workers get verdi union representation, but not tmo us….double standard

  • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

    Haha! My nose will grow now! LOVE IT!!

    SIGH!

    Dear AT&T,

    You’re wasting your time. Facts are facts. Mergers do not create jobs. Mergers consolidate, and when there’s consolidation, job are ELIMINATED.

    Every freaking economists know this.

    So please stop pushing the communication workers of America with this bull crap. Americans know better!

  • O….

    THank You someone for seeing the reality principal in the fact that people will lose jobs>>>

    I also like the fact that ATT news has definitely grown…..

  • link12

    This is the same administration that loves the Unions.  It is going to be interesting to see how it plays out.  There will be concessions made by At&t, but it really depends on how much padding they can put in certain politician’s pockets.

  • Shaun9778

    Thank you for offering the whole story.  I’m embarrassed to say that I once was a card carrying member of the CWA.     If they really stood for labor, they would have a little concern about the thousands of T-Mobile retail and back office folks that will lose their jobs.  Companies that serve overlapping markets don’t merge and add more jobs.  It makes no sense and I can’t believe that people are actually falling for this garbage. 

    • Tortionist

      No worries, don’t be ashamed. At least you’ve seen the light.

  • ItsMichaelNotMike

    No need to get all worked up over this.

    What matters right now is the court case. Regardless of job loss or creation, that issue is IRRELEVANT to the Judge deciding the Clayton Act cause of action.

    Even if CWA’s claims were true (they are total bullsheet, aka lies), AT&T knows better than to submit a job creation argument as part of its anti-trust defense.

    While job creation or loss may have been something to talk about when negotiating with regulators to garner their support for the deal, that issue had nothing to do with anything once the DOJ’s Anti-Trust Division started sniffing around, and the jobs issue became wholly irrelevant once the DOJ filed the anti-trust suit.

    Bottom line: If the Judge finds the AT&T acquisition violates the Clayton Act (most likely she will considering her expressions in the Sprint, C Spire cases), this deal is completely dead. AT&T employees can stop worrying about being fired, TMOUS employees can continue to worry about being canned. (Having dealt with mergers and acquisitions for many years, my advice to TMOUS is twofold: 1) You don’t owe DT a damn thing, they don’t care about you, you should not care about them; and 2) Start aggressively looking for another job, don’t wait to see what happens in this case. Remember, for every $10,000 in annual pay you are seeking, calculate a two month job search.

    Sidenote: The only way AT&T can salvage this mess is if it can negotiate with the DOJ terms sufficient to where the DOJ won’t file suit, again. I don’t see AT&T doing that.

    • Plankton

      You sir, are a genius. Consider joining me and we shall rule the world!!!!!

  • Meagan

    As some of you know, its an insult to think that figure is believable for the general public. It goes to show you, they’ll say what they know stupid people want to hear.

  • Stay In The Mountains

    When the deal goes through, only 2-5k jobs will be avail

  • Anonymous

    One more proof that corporations not only can buy politicians, but organizations too. Counter that.