AT&T said it has reached a tentative agreement on a four-year contract with about 20,000 wireless workers represented by the Communications Workers of America District 6.
The agreement covers employees in Kansas, Missouri, Arkansas, Oklahoma and Texas.
The contract still requires the approval of union members. Both sides agreed to start negotiating earlier this month, even though the current contract does not expire until April 6, 2013.
AT&T said the agreement, among other things, includes pay raises in each year of the contract 2.25 percent the first year, 2.5 percent the second year, 2.75 percent in the third year and 3 percent the fourth year.
The new contract also calls for an increase in employee contributions to the wireless carriers health care plan.
If the agreement is ratified by Jan. 31, eligible employees will receive a $1,000 bonus.