CWA Alone in Raising Concerns on T-Mobile/MetroPCS Deal
The Communications Workers of America union wants conditions that assure no jobs will be lost if Deutsche Telekom is allowed to buy MetroPCS, to merge it with DT’s U.S. carrier, T-Mobile. In contrast to other recently proposed mergers, the T-Mobile/MetroPCS deal has seen little official opposition. Petitions to deny were due Monday at the FCC. As of our deadline Tuesday, the only major concerns were expressed by CWA, which has long had a rocky relationship with T-Mobile. But it filed comments rather than a formal petition to deny. CWA sought the same protections for carrier workers in connection with the failed AT&T/T-Mobile deal.
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The proposed merger “threatens to harm the public interest by directly resulting in the loss of as many as 10,000 jobs at a time of persistently high unemployment in the U.S.,” CWA said. CWA proposed that the FCC impose three conditions if it approves the deal: “No U.S. employees will lose their jobs as a result of the proposed Transaction; Network maintenance will continue to be provided by U.S. employees; and Work previously sent offshore by T-Mobile and MetroPCS will be returned to the U.S."
The CWA filing was made by Patton Boggs, with the lead attorney of record former FCC Chairman Kevin Martin. “Unless the FCC specifically imposes conditions protecting U.S. employment, ... the proposed Transaction could result in a significant loss of jobs,” the union said. “CWA is concerned that references to post-merger `efficiencies’ and `transaction-specific savings’ through a variety of `network and non-network synergies,’ may be euphemisms for reducing employment and firing workers. This threat is very real given both Applicants’ demonstrated records of eliminating or outsourcing jobs -- including to other countries -- in the interest of cost-cutting.” CWA expressed particular concerns about back office job cuts, which it said may be needed to achieve promised non-network synergies of about $1 billion.
Two other comments were filed this week. The departments of Justice and Homeland Security jointly asked the FCC to defer action until they complete a review of the “national security, law enforcement, and public safety issues” raised (http://xrl.us/bn3r4h). The Free State Foundation made positive comments on the transaction (CD Nov 27 p7). Only 13 filings have been made in the FCC docket on the transaction, 12-301, since it was created Oct. 16.