Wireline workers for AT&T's (NYSE:T) western region rejected a new three-year contract, the company announced yesterday.

The contract would have covered 17,000 workers in California and Nevada represented by the Communications Workers of America District 9. The company said it included annual wage and pension increases.

The contract had been offered to the membership for a vote in February in spite of the union's bargaining committee saying it could not recommend it. The District 9 vice president, however, did recommend it be ratified.

AT&T said it will continue working to come to an agreement.

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