Frontier Communications Corporation (NASDAQ:FTR) and the
Communications Workers of America District 1 (CWA) are pleased to
announce the signing of an agreement that will benefit
CWA-represented employees and the citizens of Connecticut. The
agreement is an important step forward in the process to complete
Frontier’s planned acquisition of AT&T’s wireline business and
statewide fiber network and U-verse video and satellite TV
customers in Connecticut. The CWA supports the proposed acquisition
and believes it is in the public interest.
After the close of the transaction, Frontier will employ nearly
3,000 employees in Connecticut serving approximately one million
customers in the state.
Frontier and the CWA have agreed on many important terms for
union members and future union employees. By ensuring the workforce
in Connecticut has a clear picture of how the acquisition will
affect them, these dedicated men and women can focus on delivering
state-of-the-art broadband, wireline and video services to
Connecticut telecommunications customers.
Frontier has agreed to honor and extend the current collective
bargaining agreement until April 2018. Highlights of the agreement
include:
- The addition of 85 new union jobs;
- Employee job security and guaranteed
workforce size;
- Priority routing to Connecticut call
center representatives;
- A new service center for Dispatch and
U-verse technician support;
- Single Tech Out, allowing all
technicians to service all customers, resulting in better and
faster service for installations and repairs; and
- All union employees will receive 100
shares of Frontier stock upon closing of the transaction to
demonstrate Frontier’s commitment to its newest employees and their
ownership in the company’s success.
All commitments by Frontier are designed to ensure that the
workforce is highly motivated and trained to deliver the best
possible service to the citizens of Connecticut.
"We are very pleased the CWA acknowledges the transaction’s
benefit to the public,” said Daniel J. McCarthy, President and
Chief Operating Officer of Frontier. “We value our positive
relationships with our employees and unions and rely on them to
`Put the Customer First’ to deliver an exceptional communications
experience to our customers.” Mr. McCarthy added, “Our discussions
with the CWA about the Connecticut acquisition have been open,
honest and ongoing. We look forward to a strong partnership that
will mean the best service and products for our customers and their
evolving communications needs."
Bill Henderson, President of CWA Local 1298, added, “After
several months of complex negotiations, we are very pleased with
the agreement reached today with Frontier. We believe it is in the
best interests of Connecticut’s telecommunications workers and
consumers, and we look forward to continue providing our customers
with the best possible quality service.”
After the completion of the acquisition, which is expected in
the fourth quarter of this year, Connecticut, New York and
Pennsylvania, as well as its state operations, will be located in
Connecticut. Connecticut has been Frontier Communications’ home
since 1946.
The agreement between Frontier and CWA is contingent upon the
approval of the proposed transaction by the Federal Communications
Commission, the Connecticut Public Utilities Regulatory Authority
and the consummation of the proposed transaction.
About Frontier
Communications
Frontier Communications Corporation (NASDAQ:FTR) offers
broadband, voice, satellite video, wireless Internet data access,
data security solutions, bundled offerings, specialized bundles for
residential customers, small businesses and home offices and
advanced communications for medium and large businesses in 27
states. Frontier's approximately 13,700 employees are based
entirely in the United States. More information is available
at www.frontier.com.
For more information about the acquisition, visit
www.frontier.com/ir.
About Communication Workers of
America
CWA District One represents 150,000 private and public sector
workers from New Jersey to Maine, including 23,000 at Verizon and
40,000 NJ State employees. Nationally, CWA represents 700,000
workers in private and public sector employment in the United
States, Canada and Puerto Rico in 1,200 chartered CWA local unions.
In 10,000 communities across the United States, CWA members work in
telecommunications and information technology, the airline
industry, news media, broadcast and cable television, education,
health care and public service, law enforcement, manufacturing and
other fields.
Forward-Looking
Statements
This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions of The Private
Securities Litigation Reform Act of 1995. These statements are made
on the basis of management’s views and assumptions regarding future
events and business performance. Words such as “believe,”
“anticipate,” “expect” and similar expressions are intended to
identify forward-looking statements. Forward-looking statements
(including oral representations) involve risks and uncertainties
that may cause actual results to differ materially from any future
results, performance or achievements expressed or implied by such
statements. These risks and uncertainties include, but are not
limited to: our ability to complete the acquisition of the
Connecticut operations from AT&T the ability to successfully
integrate the Connecticut operations of AT&T into our existing
operations; the risk that the cost savings from the AT&T
transaction may not be fully realized or may take longer to realize
than expected; the sufficiency of the assets to be acquired from
AT&T to enable the combined company to operate the acquired
business; failure to enter into or obtain, or delays in entering
into or obtaining, certain agreements and consents necessary to
operate the acquired business as planned; the failure to obtain,
delays in obtaining or adverse conditions contained in any required
regulatory approvals for the AT&T transaction; the effects of
increased expenses incurred due to activities related to the
AT&T transaction; disruption from the AT&T transaction
making it more difficult to maintain relationships with customers
or suppliers; the effects of greater than anticipated competition
from cable, wireless and other wireline carriers that could require
us to implement new pricing, marketing strategies or new product or
service offerings and the risk that we will not respond on a timely
or profitable basis; reductions in the number of our voice
customers that we cannot offset with increases in broadband
subscribers and sales of other products and services; our ability
to maintain relationships with customers, employees or suppliers;
the effects of ongoing changes in the regulation of the
communications industry as a result of federal and state
legislation and regulation, or changes in the enforcement or
interpretation of such legislation and regulation; the effects of
any unfavorable outcome with respect to any current or future
legal, governmental or regulatory proceedings, audits or disputes;
the effects of changes in the availability of federal and state
universal service funding or other subsidies to us and our
competitors; our ability to successfully adjust to changes in the
communications industry and to implement strategies for growth;
continued reductions in switched access revenues as a result of
regulation, competition or technology substitutions; our ability to
effectively manage service quality in our territories and meet
mandated service quality metrics; our ability to successfully
introduce new product offerings, including our ability to offer
bundled service packages on terms that are both profitable to us
and attractive to customers; the effects of changes in accounting
policies or practices adopted voluntarily or as required by
generally accepted accounting principles or regulations; our
ability to effectively manage our operations, operating expenses
and capital expenditures, and to repay, reduce or refinance our
debt; the effects of changes in both general and local economic
conditions on the markets that we serve, which can affect demand
for our products and services, customer purchasing decisions,
collectability of revenues and required levels of capital
expenditures related to new construction of residences and
businesses; the effects of technological changes and competition on
our capital expenditures, products and service offerings, including
the lack of assurance that our network improvements in speed and
capacity will be sufficient to meet or exceed the capabilities and
quality of competing networks; the effects of increased medical
expenses (including as a result of the impact of the Patient
Protection and Affordable Care Act) and pension and postemployment
expenses, such as retiree medical and severance costs, and related
funding requirements; the effects of changes in income tax rates,
tax laws, regulations or rulings, or federal or state tax
assessments; our ability to successfully renegotiate union
contracts; changes in pension plan assumptions and/or the value of
our pension plan assets, which could require us to make increased
contributions to the pension plan in 2014 and beyond; the effects
of economic downturns which could result in difficulty in
collection of revenues and loss of customers; adverse changes in
the credit markets or in the ratings given to our debt securities
by nationally accredited ratings organizations, which could limit
or restrict the availability, or increase the cost, of financing to
us; our cash flow from operations, amount of capital expenditures,
debt service requirements, cash paid for income taxes and liquidity
may affect our payment of dividends on our common shares; the
effects of state regulatory cash management practices that could
limit our ability to transfer cash among our subsidiaries or
dividend funds up to the parent company; and the effects of severe
weather events such as hurricanes, tornadoes, ice storms or other
natural or man-made disasters, which may increase our operating
expenses or adversely impact customer revenue. These and other
uncertainties related to our business are described in greater
detail in our filings with the U.S. Securities and Exchange
Commission, including our reports on Forms 10-K and 10-Q, and the
foregoing information should be read in conjunction with these
filings. We do not intend to update or revise these forward-looking
statements to reflect the occurrence of future events or
circumstances.
Frontier Communications:Steven C. Crosby,
916-686-3333steven.crosby@ftr.comorBrigid M. Smith,
203-614-5042brigid.smith@ftr.comorCWA:Bill Henderson,
860-908-8680President, CWA Local 1298whenderson@cwa1298.orgorDennis
Trainor, 516-769-6924Asst. to the VP, CWA District
OneDTrainor@cwa-union.org
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