Frontier Communications and Communications Workers of America Reach Agreement in California
July 27 2015 - 2:30PM
Business Wire
Securing Additional California Jobs
Frontier Communications Corporation (NASDAQ: FTR) and the
Communications Workers of America District 9 (CWA) are pleased to
announce the signing of an agreement that will benefit
CWA-represented employees and Frontier’s future customers in
California. The agreement is an important step forward in the
process to complete Frontier’s planned acquisition of Verizon’s
wireline business assets in California. The CWA, representing
approximately 3,400 Verizon employees in California, supports the
proposed acquisition and believes approval of this transaction is
in the public and employees’ interest.
Under the agreement, and after the transaction closes in the
first half of 2016, Frontier will increase its workforce in
California with at least 150 new, union-represented positions. The
agreement also provides for new customer service jobs in
California.
Frontier and the CWA have agreed to partner to bring the best
possible products and services to California. By ensuring the
workforce has a clear picture of how the acquisition will affect
employees, these dedicated men and women can continue focusing on
delivering state-of-the-art broadband, voice and video services to
residential and business customers.
Frontier has agreed to honor and extend current collective
bargaining agreements. Highlights of the agreement include:
- The addition of 150 new union jobs in
California;
- Employee job security and guaranteed
workforce size;
- Extend the existing contract for two
years with wage increases in each year;
- Operational flexibility to enhance the
service experience for customers;
- All union employees will receive 100
shares of Frontier restricted stock upon the closing of the
transaction to demonstrate Frontier’s commitment to its newest
employees and their ownership in the company’s success; and
- Frontier commits to a 100% U.S.-based
workforce
As part of this agreement, Frontier and the CWA will form a
Partnership Forum that will promote innovation of Frontier’s
products and services and the service experience our customers
receive. All commitments by Frontier are designed to ensure the
workforce stays highly motivated and trained to deliver the best
possible service to its future customers in California.
“All discussions with the CWA about the Verizon acquisition have
been open and productive,” said Daniel J. McCarthy, President and
Chief Executive Officer of Frontier. “Our success in the highly
competitive California workplace is dependent on the partnership
with our CWA- represented employees. Every day, employees bring
their service commitment to the workplace and that commitment will
enable Frontier to deliver on our core promise to ‘Put the Customer
First.’ We’re extremely pleased the CWA has agreed to support us as
we move forward in California. We plan to build on this partnership
over the months and years ahead as we continue to invest in people
and infrastructure across the state.”
Tom Runnion, Vice President of CWA District 9, said, “After
several sessions of intense negotiations, we have reached an
agreement that’s in the best interests of telecommunications
workers and consumers in California. As we move forward in this
partnership with Frontier, CWA members will continue to provide
customers with the quality service they expect and deserve.”
The agreement between Frontier and CWA is contingent upon the
consummation of the proposed transaction, which requires approval
by the Federal Communications Commission (FCC) and California
Public Utilities Commission (CPUC).
About Frontier Communications
Frontier Communications Corporation (NASDAQ: FTR) offers
broadband, voice, 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 28
states. Frontier's approximately 17,800 employees are based
entirely in the United States. More information is available at
www.frontier.com.
About Communication Workers of America
The Communications Workers of America represents 700,000 workers
in telecommunications, media, airlines, public service and
manufacturing.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150727006128/en/
Frontier CommunicationsSteven C. Crosby,
916-686-3333steven.crosby@ftr.comBrigid M. Smith,
203-614-5042brigid.smith@ftr.comorCWACandice Johnson,
202-434-1168cjohnson@cwa-union.org
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