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CWA Applauds AT&T for Scrapping $4B Stock Buyback Plan

The Communications Workers of America applauded AT&T for canceling its plan to use $4 billion to buy back stock.

CWA president Chris Shelton wrote AT&T CEO Randall Stephenson to praise the decision to cancel that second-quarter stock repurchase.

CWA represents about 100,000 AT&T employees. 

"The Company previously announced it had entered into an accelerated share repurchase agreement (“ASR Agreement”) with Morgan Stanley & Co. LLC to repurchase $4 billion of the Company’s common stock during the second quarter," AT&T told the Securities & Exchange Commission (SEC) Friday (March 20). "While our business continues to operate effectively during the COVID-19 global pandemic, we have decided at this time to cancel this ASR agreement and any other repurchases to maintain flexibility and focus on continued investment in serving our customers, taking care of our employees and enhancing our network, including nationwide 5G. These continued investments will help ensure the Company is well positioned when the pandemic passes and economies begin to recover." 

Shelton said the union remained committed to working with management to "ensure worker and customer safety, solve problems, and provide reliable service to customers" during the pandemic.

“Working with us to keep AT&T workers and their families safe and your decision to put workers and customers first by cancelling $4 billion in stock repurchases will enable all of us to better weather this crisis," said Shelton. 

John Eggerton
John Eggerton

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.