AT&T (News - Alert) certainly has its hands full this week. Contracts for about 40,000 of the telecom giant's employees will expire at midnight on Saturday, raising the likelihood of a strike. The workers, who are employed on the local phone and long-haul data arm of the company, are primarily located in the Midwestern US and California.

Negotiations for contracts are continuing between AT&T and the Communications Workers of America (CWA (News - Alert)), the union representing the workers. AT&T is likely hoping that things turn out they way they did when the last large group of contracts was negotiated three years ago: though AT&T and the CWA held meetings beyond the contract expiration date, a strike was averted, the Associated Press (News - Alert) is reporting today.

However, members of the Communications Workers of America at AT&T West recently voted overwhelmingly to authorize CWA leaders to call a strike if a fair contract cannot be reached. Ninety-three percent of voting AT&T West members approved the strike authorization, said the CWA.

“Even in these difficult economic times, in a constantly changing industry, AT&T is a very successful and profitable company. CWA believes that AT&T West has a responsibility to support our communities by being a leader for economic growth. That means continuing to provide good, middle class jobs and not taking the low road of outsourcing, layoffs and cost shifting in order to meet competitive challenges,” said CWA District 9 Vice President Jim Weitkamp.

AT&T has 256,000 employees, of which slightly more than half are unionized. That makes it the country's largest private employer of union labor, reported the AP. The issues being discussed by AT&T management and the union include job protection clauses and health care premiums and co-payments. AT&T is requesting that employees pick up more of the cost of their healthcare.