Union says AT&T must reject Elliott's restructuring plan

FILE PHOTO: A woman uses her phone as she passes by an AT&T store on Wall St. in New York, U.S., June 19, 2019. REUTERS/Brendan McDermid - RC154B9100C0

(Reuters) - AT&T's T.N main labor union on Thursday called on the company to reject hedge fund Elliott Management's proposals for a major shakeup of the United States' second-largest telecommunications carrier.

The Communications Workers of America, which represents over 100,000 AT&T workers, said the hedge fund’s plan would eliminate jobs, send work to low-wage contractors and harm the interests of customers and long-term investors.

“Elliott Management has taken the obsession with shareholder value to an extreme, pushing proposals that in the end benefit only a small subset of shareholders - themselves,” CWA President Chris Shelton.

Activist investor Elliott disclosed a $3.2 billion stake in AT&T on Monday, questioned its $85 billion acquisition of TimeWarner and said it should sell off non-core assets.

AT&T and Elliott did not respond to requests for comment.

Reporting by Neha Malara in Bengaluru; Editing by Saumyadeb Chakrabarty