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Frontier Communications Employees in Minnesota and Iowa Ratify New, Three-Year Labor Contracts with Communications Workers of America

07/10/2009

STAMFORD, Conn.--(BUSINESS WIRE)-- Frontier Communications Corporation (NYSE: FTR) today reported two contract ratifications with Communications Workers of America (CWA) locals representing approximately 330 Frontier employees in Minnesota and Iowa. CWA-represented employees in Frontier's Minnesota operations ratified the agreement on July 2, 2009, and CWA-represented employees in Frontier's Iowa operations ratified the agreement on July 6, 2009. Both agreements are for three years and were ratified on the first vote. The company and union bargaining committees worked together over nine weeks to address many issues that were priorities for both parties: recognizing the steep competition in the telecommunications business, the challenging economics times and the importance of hiring and retaining the best employees with competitive wages and benefits.

The Minnesota CWA Local 7270 represents 280 employees with Sales and Service Technicians serving customers in the Burnsville metro and southern Minnesota areas and a large Call Center in Burnsville that provides sales and service to customers nationwide. The contract includes modest compensation increases, performance-based incentives, modest changes to the benefits packages including improved wellness benefits and several operational terms including a Pro-Resource Program that enables Frontier to hire retirees on a temporary basis and a Work-at-Home program for the Call Center Sales & Service Representatives.

The Iowa CWA Local 7171 represents 50 employees serving customers in western Iowa. Frontier's primary operations are in Fort Dodge, Denisonand Le Mars, Iowa. While the agreement ratified by the Iowa CWA-represented employees has many similarities to the Minnesota contract, the contract also addressed unique employee and operational issues that were important for the future of the Iowa business.

Given the economic times, the company proposed expense savings to avoid layoffs as part of a company-wide expense reduction initiative. The Minnesota and Iowa CWA locals agreed to defer wage increases they would have received in 2009 until January 2010 and also agreed to other cost-saving measures. Cecilia McKenney, Executive Vice President, Human Resources and Call Center Sales and Service, remarked, "Frontier is proud to work with the Minnesota and Iowa CWA representatives and recognizes that it takes compromise on both sides to get to a agreement that is good for our employees, our customers and our future."

The Pro-Resource Program and the Work-at-Home Program are innovative work arrangements that have been successfully implemented by Frontier with other unions including the International Brotherhood of Electrical Workers and Workers United. Frontier now has 200 Work-at-Home Call Center Sales & Service Representatives around the country, and they are some of the best performing employees. Ms. McKenney added, "Frontier's Work-at-Home program and Pro-Resource Program are examples of the collaborative working relationship we have with these CWA locals. We truly are all in this together, and the leadership of these CWA locals have worked with Frontier's team to promote shared success."

More information about Frontier is available at www.frontier.com.

    Source: Frontier Communications Corporation
Contact: Frontier Communications Corporation Steve Crosby, 916-686-3333 Steven.Crosby@frontiercorp.com

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