But the union Wednesday called the proposal a ``major'' step backward.
Dallas-based AT&T says it offered raises of 2 percent now, and 2.25 percent each in 2010 and 2011, plus a $500 bonus if workers ratify the contract by June 5.
It also said lower-paid employees would pay less in health care deductibles and out-of-pocket expenses, and the offer preserved
contributions to 401(k) retirement accounts.
AT&T this week made the latest offer to the Communications Workers of America.
AT&T is negotiating separately with wireline workers in five districts.