reprinted from WVA Newsletter "The (304) 411"
The disaster that CWA predicted resulting from the deal we
tried to prevent has come to pass: FairPoint Communications filed for
bankruptcy on Oct. 26.
The CWA and IBEW warned state residents and northern New England’s
Public Service Commissioners that the sale of Verizon wireline operations
to FairPoint would be a disaster for customers and could bankrupt
FairPoint. The Public Service Commission ignored the warnings and the
sale was approved. Just 18 months later, FairPoint collapsed due to its
massive $2.7 billion debt and the organizational chaos resulting from
its failed attempt to replace Verizon’s computer and billing systems.
Union leaders take no pleasure in the fact their predictions on the
outcome of the FairPoint/Verizon deal were stunningly accurate.
“What good does it do us? We can say it, but we’re left here to deal
with it,” Pete McLaughlin of the International Brotherhood of Electrical
Workers, which represents some FairPoint employees.
FairPoint is just the latest example of a company bankrupted due to
involvement in a Verizon deal. Previously Idearc and Hawaiian Telcom
went bankrupt after acquiring Verizon operations. CWA wants to ensure
that Frontier Communications isn’t eventually added to that list of
bankrupt companies. If Frontier would follow in FairPoint’s footsteps
it would leave West Virginia taxpayers to clean up the mess and the
Mountain State’s communications infrastructure at risk. Employees of a
bankrupt Frontier might lose their jobs and those lucky enough to remain
would likely endure deep cuts in pay and benefits.
“We’re committed to protecting the jobs of our members and to ensuring
high-quality service for consumers, “said International Representative
Elaine Harris “The collapse of FairPoint painfully illustrates why we
oppose the Verizon/Frontier deal. We will not put our members’ jobs,
or West Virginia’s telecommunications, at risk just to increase Verizon’s
tax-free profits.”
