Unions’ Campaign Against Verizon Sale Nets Better Deal for Consumers, Workers

[Omaha Steve]

http://blog.aflcio.org/2008/03/25/unions-campaign-against-verizon-sale-nets-better-deal-for-consumers-workers/

by James Parks, Mar 25, 2008

Verizon workers mounted a strong campaign against the sale of the company’s landlines in New Hampshire, Maine and Vermont. As a result, when regulators approved the sale, the workers’ efforts created a better deal for consumers and the workers.

The Electrical Workers (IBEW) and the Communications Workers of America (CWA), which together represent 2,500 Verizon employees, reached a tentative agreement yesterday with FairPoint Communications, the North Carolina-based company that will take over Verizon’s landline operations in the three states March 31.

The unions say the five-year deal includes wage and pension increases, continues health care benefits for employees and retirees and improves 401(k) benefits. The two unions, along with political leaders and community organizations, had urged regulators to reject the proposed deal.

The unions questioned whether FairPoint had the financial resources to take over a company more than five times its size. The workers’ efforts helped ensure that FairPoint will be stronger financially than it would have been under the original deal. The final sale requires Verizon to put $362 million more into the deal and FairPoint must cut its dividends by at least $200 million in order to reduce its debt.

Says CWA President Larry Cohen:

Efforts by union members, concerned elected officials, community and consumer groups, and thousands of residents and activists in Vermont, New Hampshire and Maine resulted in changes to the original deal that will help bring about quality service and support for northern New England customers.

The New Hampshire Public Utilities Commission (PUC) acknowledged workers’ contribution to the debate in its Feb. 25 decision:

Although they did not endorse the settlement agreement, in our judgment the Labor Intervenors’ participation was key to the improved outcome.

Once the sale was approved, the unions began negotiating with FairPoint. The new IBEW/CWA contracts contain few changes from the previous contracts with Verizon, says Glenn Brackett, business manager for IBEW Local 2320 in New Hampshire. He said the agreement effectively extends the contracts five years and provides 3 percent raises for all workers each year until 2013.

FULL story at link.