EL PASO, Texas -- A loud chant could be heard from outside the Communication Workers of America union headquarters in Central El Paso Sunday. AT&T workers there prepared signs to picket after contract talks appear to have broken down.

The 800 employees armed themselves with markers, poster board and picket signs to protest a spike in healthcare costs proposed in the new contract.

"Today specifically is a rally day. We are getting ready to hold informational pickets starting next week here in El Paso," said Sid Searcy, CWA president. "AT&T has always provided reasonable healthcare for their employees for the last 60 years."

Searcy has no qualms with the salary rate the final contract offer calls for, but their chief complaint surrounds a significant increase in healthcare costs, they said up to 30 percent.

"We have helped make AT&T what it is today. AT&T recorded record profits last year of $12.9 billion, and all we are asking for is AT&T to take care of its current rank and file membership," Searcy said.

AT&T told KFOX Sunday the offer is final and the increase is to be expected.

"We are seeking some fundamental changes in our health care benefits. We are seeking a system that asks our employees to assume a bit more responsibility, but it is less responsibility than any other employee at AT&T," said Walt Sharp, an AT&T spokesman.

However, union members said the increase comes as retiree benefits would be cut completely, something AT&T reps would not comment on.

So Sunday the workers gathered and planned to walk -- walk the picket lines and walk out off the job is necessary.

“What we are striving to protect is our livelihood and our health benefits,” Searcy said.

AT&T has given a contract ratification deadline of June 6.