CWA and IBEW union locals in Vt. asked Vt. legislators to hold he...
CWA and IBEW union locals in Vt. asked Vt. legislators to hold hearings on Verizon’s $2.7 billion sale of its northern New England landline operations to FairPoint Communications. Union officials at a Wed. rally at the Vt. state house…
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said they fear FairPoint can’t cover the Verizon debt it will take on and keep investment and employment promises. The IBEW has 400 Verizon employees in Vt.; CWA, 125. The unions represent 2,800 Verizon workers in the 3 states. FairPoint officials said the unions’ fears are unfounded. FairPoint COO Peter Nixon said in a written statement: “We are willing to state today we are not going to be reducing pay or benefits as part of the negotiations” for new contracts to replace current ones that expire in 2008. Other officials said FairPoint’s plans to finance the deal include issuing $1 billion in new common stock. Walter Leach, exec. vp-corporate development, said Wall Street has treated the deal as “a very good and sound investment.” FairPoint earlier promised no layoffs and a $200 million investment in Vt., Me. and N.H. within 18 months of the transaction closing. The Vt. legislature has no direct authority over the transaction, but legislative hearings might influence Public Service Board review of the deal. PSB approval is required for the deal to close. Union dissent with the spinoff has been open only in Vt., but union locals in the other 2 states have aired similar concerns.