STAMFORD, Conn.--(BUSINESS WIRE)--
Frontier Communications Corporation (NASDAQ:FTR) and the Communications
Workers of America District 1 (CWA) are pleased to announce the signing
of an agreement that will benefit CWA-represented employees and the
citizens of Connecticut. The agreement is an important step forward in
the process to complete Frontier’s planned acquisition of AT&T’s
wireline business and statewide fiber network and U-verse video and
satellite TV customers in Connecticut. The CWA supports the proposed
acquisition and believes it is in the public interest.
After the close of the transaction, Frontier will employ nearly 3,000
employees in Connecticut serving approximately one million customers in
the state.
Frontier and the CWA have agreed on many important terms for union
members and future union employees. By ensuring the workforce in
Connecticut has a clear picture of how the acquisition will affect them,
these dedicated men and women can focus on delivering state-of-the-art
broadband, wireline and video services to Connecticut telecommunications
customers.
Frontier has agreed to honor and extend the current collective
bargaining agreement until April 2018. Highlights of the agreement
include:
-
The addition of 85 new union jobs;
-
Employee job security and guaranteed workforce size;
-
Priority routing to Connecticut call center representatives;
-
A new service center for Dispatch and U-verse technician support;
-
Single Tech Out, allowing all technicians to service all customers,
resulting in better and faster service for installations and repairs;
and
-
All union employees will receive 100shares of Frontier stock
upon closing of the transaction to demonstrate Frontier’s commitment
to its newest employees and their ownership in the company’s success.
All commitments by Frontier are designed to ensure that the workforce is
highly motivated and trained to deliver the best possible service to the
citizens of Connecticut.
"We are very pleased the CWA acknowledges the transaction’s benefit to
the public,” said Daniel J. McCarthy, President and Chief Operating
Officer of Frontier. “We value our positive relationships with our
employees and unions and rely on them to `Put the Customer First’ to
deliver an exceptional communications experience to our customers.” Mr.
McCarthy added, “Our discussions with the CWA about the Connecticut
acquisition have been open, honest and ongoing. We look forward to a
strong partnership that will mean the best service and products for our
customers and their evolving communications needs."
Bill Henderson, President of CWA Local 1298, added, “After several
months of complex negotiations, we are very pleased with the agreement
reached today with Frontier. We believe it is in the best interests of
Connecticut’s telecommunications workers and consumers, and we look
forward to continue providing our customers with the best possible
quality service.”
After the completion of the acquisition, which is expected in the fourth
quarter of this year, Connecticut, New York and Pennsylvania, as well as
its state operations, will be located in Connecticut. Connecticut has
been Frontier Communications’ home since 1946.
The agreement between Frontier and CWA is contingent upon the approval
of the proposed transaction by the Federal Communications Commission,
the Connecticut Public Utilities Regulatory Authority and the
consummation of the proposed transaction.
About Frontier Communications
Frontier Communications Corporation (NASDAQ:FTR) offers broadband,
voice, satellite 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 27 states. Frontier's approximately
13,700 employees are based entirely in the United States. More
information is available at www.frontier.com.
For more information about the acquisition, visit www.frontier.com/ir.
About Communication Workers of America
CWA District One represents 150,000 private and public sector workers
from New Jersey to Maine, including 23,000 at Verizon and 40,000 NJ
State employees. Nationally, CWA represents 700,000 workers in private
and public sector employment in the United States, Canada and Puerto
Rico in 1,200 chartered CWA local unions. In 10,000 communities across
the United States, CWA members work in telecommunications and
information technology, the airline industry, news media, broadcast and
cable television, education, health care and public service, law
enforcement, manufacturing and other fields.
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.
Frontier Communications:
Steven C. Crosby, 916-686-3333
steven.crosby@ftr.com
or
Brigid
M. Smith, 203-614-5042
brigid.smith@ftr.com
or
CWA:
Bill
Henderson, 860-908-8680
President, CWA Local 1298
whenderson@cwa1298.org
or
Dennis
Trainor, 516-769-6924
Asst. to the VP, CWA District One
DTrainor@cwa-union.org
Source: Frontier Communications Corporation