FairPoint and two unions representing 2,500 workers being transfe...
FairPoint and two unions representing 2,500 workers being transferred from Verizon at month’s end announced agreement on a five-year contract replacing one expiring in August. The CWA and IBEW had opposed the $2.4 billion sale of Verizon landline assets…
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in Maine, New Hampshire and Vermont, fearing the post-sale FairPoint wouldn’t be financially viable. But they agreed to negotiate with FairPoint when the sale seemed likely to be approved. The contract, which union members in the three states must ratify, sets three percent annual pay raises for all union workers through 2012, increases pensions, guarantees health benefits for active and retired employees, and improves the 401(k) plan. The contract incorporates a state merger- approval condition requiring FairPoint to create a trust fund to guarantee that retirement health benefits continue. All parties called the pact basically a five-year extension of the Verizon contract, with few modifications. If union members approve, the pact will take effect upon the sale’s closing, set for March 31. Walter Leach, FairPoint vice president for development, said the contract lets the company and employees “concentrate on doing their jobs, taking care of customers and taking care of the broadband buildout.” Union officials enthused about the contract, saying the unions “will do all we can to make FairPoint a successful company.”