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AT&T Hangs Up On Customer Service Outsourcing

Paul McDougall
Editor At Large, InformationWeek

An agreement with its union will create 2,000 new unionized jobs at its U.S. operations and eliminate the use of low-wage foreign call centers to provide customer support for its home broadband business.

AT&T said late Thursday that it will create 2,000 new unionized jobs at its U.S. operations under a plan that would see the telecom giant eliminate the use of low-wage foreign call centers to provide customer support for its home broadband business.

"We were able to create these jobs at competitive salaries," says an AT&T spokesman. The positions will pay $30,000 per year plus benefits. AT&T is implementing the plan in cooperation with the Communications Workers of America, the union that represents telecom workers at the company. AT&T will start adding the positions beginning in mid-2007. It hasn't yet decided where it will place the workers, the spokesman says.


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CWA officials welcomed the move. "Reversing the flow of work from contractors back to our bargaining units is a terrific achievement," said CWA executive VP Jeff Rechenbach, in a statement.

AT&T insists it made the decision to repatriate the jobs after successfully bargaining "competitive" wages with the CWA. But customer pressure to improve service may also have been a factor. Users of AT&T's home DSL service frequently pillory the company on online bulletin boards and blogs. A poster on DSLreports.com complains that AT&T's "India tech support doesn't know anything." AT&T's spokesman declined to identify the vendor currently handling the company's offshore DSL support.

AT&T is now creating the U.S. based position of Tier 1 customer assistant to handle tech support for DSL users. It's the second group of jobs that AT&T and the CWA have agreed to create in recent months. The company and the union recently worked out a plan to hire in-home technical services reps for AT&T's U-verse digital video services.

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