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PSC Approves Verizon/Frontier Deal in Split Decision; Union Weighing Options
 
The Communications Workers of America said today they are weighing their options after yesterday’s approval by the West Virginia Public Service Commission of the sale of the Verizon’s phone lines in the state to Frontier Communications.
 
“We’re in the process of evaluating the order,” said CWA District 2 Vice-President Ron Collins. “After full review we’ll look at what we can do that will best serve West Virginia consumers and CWA members.”
 
The union has 10 days to file a motion for reconsideration. It can also appeal directly to the state Supreme Court.
 
“Of course, we’re disappointed but we’re heartened by the fact that at least one person on the three-member commission agreed with us and more than 80 legislators, several county commissions and a broad coalition of consumer, union and first responder organizations that this deal is too risky and not in the public’s interest,” Collins said.
 
“The split decision shows our arguments about the deal had validity.”
 
Collins also pointed out the commission’s ruling earlier this week requiring Verizon to put $72 million into an escrow account to improve the company’s aging copper network shows the commission agrees with the union on the issue of Verizon’s quality of service.
 
“The ink was barely dry on the first ruling which, in essence, says Verizon hasn’t done its job in taking care of its operations,” Collins said. “To give them a pass to leave the state and turn over these problem-riddled lines to a smaller company doesn’t make a lot of sense to us.
 
“The $72 million ruling also shows Frontier didn’t know what it was buying when it entered into this deal. Had they known the true conditions of the operations and that the PSC would require $72 million of improvements, would they have committed billions to this deal?”
 
CWA, which has opposed the deal since it was first announced one year ago, maintains Verizon shouldn’t be allowed to leave West Virginia without first fixing its problems. As a public utility, the PSC has the power to take action and Collins said the $72 million isn’t enough. Today is the deadline for Verizon to put the $72 million into an escrow account.
 
The PSC ruling also set out conditions that must be met by Frontier. CWA is reviewing those conditions, too.
 



Washington State Approves Frontier Takeover Of Verizon Landline

APRIL 16, 2010, 6:57 P.M. ET, DOW JONES NEWSWIRES

http://online.wsj.com/article/BT-CO-20100416-714530.html?mod=WSJ_latestheadlines
Frontier Communications Corp. (FTR) said a Washington state regulatory commission approved its purchase of Verizon Communications Inc.'s (VZ) landline operations Friday.
In May, Frontier agreed to buy local phone businesses in 14 states from Verizon in an all-stock deal valued at $5.25 billion at the time. The acquisition would roughly triple the company's size.
Rural telecommunications companies are vying to buy more operations to spread their sizeable capital expenditures across a wider base of customers and gain purchasing power when buying equipment.
Washington is the seventh state to approve the Frontier-Verizon deal. Regulators in Illinois and West Virginia and the Federal Communications Commission still need to approve the transaction or related transfers.
Frontier shares were up 0.8% at $7.82 in after-hours trading. The stock is up only modestly in the last year, underperforming the broader market.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com
Rand Wilson
Center for Strategic Research, AFL-CIO
c/o IBEW Local 2222
1137 Washington Street, Dorchester, MA 02124
w) 617 929-6000, f) 617-929-6099
c) 617 803-0799


February 19, 2010
PSC advised to reject Frontier-Verizon deal
By Eric Eyre, Staff writer
http://www.wvgazette.com/News/201002190601
 
CHARLESTON, W.Va. -- The state Public Service Commission's staff and Consumer Advocate Division said Friday that Frontier Communications' application to buy Verizon's telephone landlines in West Virginia should be rejected outright because the companies failed to file any details about the proposed $8.6 billion deal.
The consumer division and PSC staff said Frontier and Verizon only submitted "general information" about the transaction.
"They didn't even file the merger agreement and 11 other associated documents," said Byron Harris, who heads the Consumer Advocate Division. "It was not put into evidence in the case. On that ground alone, the case fails from a legal standpoint."
Verizon spokesman Harry Mitchell said the accusations were "outlandish." Mitchell said all required paperwork and testimony was filed.

"We've done exactly what we needed to do to make sure the transaction is approved," he said. "We've met the conditions. We've laid out why this transaction benefits West Virginia and satisfies the commission's charge in the case."
If the three-member PSC doesn't dismiss the proposed purchase outright, it should reject the sale because it's not in the public's best interest, the consumer division and agency staff asserted in reports filed Friday.
Harris said Frontier wouldn't have the financial resources to keep promises to expand high-speed broadband Internet and improve phone landline services after the sale.
"We're still concerned Frontier didn't do its homework," Harris said. "Our overarching concern is that Frontier is less financially strong than Verizon."
Frontier said the exact opposite would happen, according to a 78-page report also filed Friday.
"The transaction will leave Frontier in a better financial position than it is today the way this is structured," Mitchell said.
Harris' office recommended that the PSC require Verizon to spend $150 million to "clean up the mess they have created in the state," if the sale is approved.
Mitchell said there is no "mess" to clean up. Verizon has spent millions to improve its West Virginia landline network and complaints have dropped significantly during the past year, he said.

"Frontier will get an excellent network and will continue to invest," he said.
In a filing Friday, Stamford, Conn.-based Frontier reiterated its plans to spend $48 million to expand broadband access and $200 million to improve the state's wire line network.
Frontier said it's the ideal company to acquire Verizon. Frontier already has more than 144,000 landline customers in West Virginia.
Frontier plans to purchase Verizon's wire line business in West Virginia and 13 other states. Utility regulators in five states already have approved the sale.
Frontier would have more phone access lines in West Virginia than in any other state, after the deal closes. The company also plans to establish its southeast regional headquarters in Charleston.
Frontier has promised not to raise rates for at least a year.
The company said it would offer high-speed broadband to 85 percent of households in West Virginia. Verizon now provides broadband to 60 percent of its customers across the state.
"Frontier has the proven financial strength, technical capability and strategic imperative to serve lower-density areas like those in Verizon's West Virginia territory," the companies wrote in Friday's filing.
Also Friday, the Communication Workers of America union intensified its opposition to the Frontier-Verizon merger. The union urged the PSC to reject Frontier's plan to purchase 617,000 landlines from Verizon in West Virginia.
"The financial facts show a post-transaction Frontier will lack the resources needed to provide adequate and reliable telecommunications services," said Elaine Harris, a union spokeswoman. "This deal isn't about the best interests of West Virginia, but about increasing profit margins for Wall Street."
The PSC is expected to decide whether to approve the landline deal by May at the latest.
Friday was the deadline for the companies and others to file briefs in the case.
© Copyright 1996-2010 The Charleston Gazette


Verizon Sale in a Nutshell and more articles
 Click Here to read the December Special Edition WVA Newsletter (304) 411.

Click Here to read the (304) 411 Special Edition of Testimony (11-09)
Click Here to read the (304) 411 November Lobby Day (11-09)

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Click to Read: Governor Wants Some Guarantees In Landline Deal

Click to Read: Frontier to lay off 3 percent of state work force


Click Here to Listen to the Ad Running in West VA to Stop the Sale.

01/11/2010
Preparing For A Crowd
MetroNews, Charleston, Kanawha County

http://www.wvmetronews.com/index.cfm?func=displayfullstory&storyid=34581 The state Public Service Commission is expecting a lot of interest in Tuesday's evidentiary hearing on the proposed sale of Verizon's landline phone service to Frontier Communications. Because the case involves two large companies and hundreds of telecommunications workers here in West Virginia, it's garnered a lot of media attention. 

Sarah Robertson with the PSC says they're planning for a big turnout.  "We fully expect this will be a very well attended hearing and we're doing everything we can to try and accommodate for that," she told MetroNews. 

The PSC hearing room can seat 56  Twenty additional folding chairs can be set up along the wall, bringing the total occupancy of the room to 76.  If that isn't enough space, the PSC has a second hearing room where people can watch the hearing on closed circuit TV.Robertson says they haven't finalized anything yet. 

"It's just something we're going to have to look at tomorrow (Tuesday) and see how many people do show up." The first part of the hearing will be for public comments.  The PSC has already received dozens of written comments from those for and against the project. 

"They [the PSC] do kind of have a gauge as to what a lot of public comment is: the good, the bad, the ugly, etc..."

If you want to speak at the hearing, you'll need to sign up before the hearing starts. Robertson says depending on how many people want to voice opinions, the PSC may have to limit comment. 

If you can't attend the hearing but want to follow it, you can log on to the PSC website at www.psc.state.wv.us and watch the proceedings.  The hearing gets underway at 9:30 a.m. Tuesday. 

It's expected to last through Thursday. 


Gov. Manchin Joins Public Rally Against Sale of Verizon 

Charleston, WV -- Just days before the first hearing at the Public Service Commission, Governor Joe Manchin made a surprise appearance at a large rally of labor and community groups opposed to the proposed sale of Verizon's telephone lines to much smaller Frontier Communications. 

Gov. Manchin joined CWA President Larry Cohen, CWA District 2 VP Ron Collins, United Mineworkers President Cecil Roberts and many other labor and community leaders on the stage to say that he would do everything in his power to make the proposed deal work for the working families of West Virginia -- not just for the Wall Street bankers. 

Other rally speakers included Sen. Jack Yost, Del. Mike Caputo, state AFL-CIO President Kenny Perdue, and representatives from the firefighters, nurses and senior citizens. Pictures from the rally may be viewed on a photo sharing website at:http://picasaweb.google.com/randwilson.aflcio/WestVirginiaRallyToStopTheSale 

Over 800 people attended the rally that was one of the last opportunities for the public to voice opposition to the proposed deal before the West Virginia Public Service Commission begins its hearings on the matter on Tuesday, January 12.   

"We need to bring high speed broadband to West Virginia and communities across the country, to foster economic growth," Cohen said.  "Instead, Verizon is using a tax loopholes to do a tax free deal that will leave West Virginia with without a platform for achieving the speeds that are necessary for economic development.  This deal is good for only good for Wall Street, not Main Street." 

Matt Vinci, a firefighter from Vermont, warned West Virginian's about the impact a similar Verizon landline sale to now bankrupt FairPoint had on 911 service in Northern New England.   

The rally took place in the Culture Center.  Live music was provided by the Carpenter Ants. 

The PSC can deny the deal if the three-person panel determines the sale isn't in the public's best interest.  In November the expert analysts at the PSC and consumer advocate submitted testimony in opposition to the deal due to the risks CWA and others have pointed out. 


Ivan Seidenburg speaks: Verizon Boss Hangs Up on Landline Phone Business

Read: Ron Collins' Reply


Stop the sale of Verizon to Frontier

VERIZON'S NEW "FRONTIER"
Verizon is attempting to abandon rural customers, communities, and employees by selling off it's network to Frontier.
There is also another "new frontier" at Verizon-a frontier that forgets who forged their path to success.
A new frontier that includes:
Sale of WV to Frontier
Unfair Productivity Standards
Lack of respect
Poor management
Poor communications
Unreasonable work rules
Unjust discipline

WHAT'S NEXT??? CWA will fight to insure that our members and customers will not be "SOLD OUT".


 

STOP VERIZON'S NEW FRONTIER

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Verizon is Abandoning Rural America

The Proposed Frontier Purchase of Verizon's Properties

Would Place Consumers, Workers and Communities at Risk

 

 

Here are examples of letters we need everyone to write to our elected officials to let them know how we feel about Frontier's proposed purchase of Verizon. Please complete handwritten letters (they are much more effective), get family and friends involved and return them to your steward or mobilizer.  

Sample One: For non-Verizon, non Frontier workers.

Sample Two: CWA West Virginia Verizon and Frontier workers. 

 

Click Here for the Verizon Sale to Frontier Fact Sheet

Share this with your co-workers, family and friends!

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Click Here to Get the Facts About Verizon Frontier Sale.

Read about Outside Help Needed For Fairpoint

The Verizon Sale
What We Can Do to Prevent This

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Verizon's Announcement to Sell Off WV Access Lines


In the wake of Verizon's announcement of their plan to sell off its West Virginia access lines to Frontier, CWA has begun analyzing the situation and developing a plan.  We intend to be fully engaged utilizing all of our resources which include, among other things, our members, political allies and the Public Service Commission. To predict the outcome or the specific impact on our members, at this time, would be premature and merely speculation. It is now more important than ever to be involved and stay informed. By phone, we can be reached at 304 344-2001.  Recorded information is available by calling 304 342-8000. 
Membership meetings are held the second Thursday of every month at 7pm 
In unity,
Letha "Lee" Perry
President CWA Local 2001
304 344-2001

 

 


CWA Mourns Death of Senator Edward Kennedy, A Hero to America’s Working Families


August 26, 2009
 
Washington, D.C. -- The Communications Workers of America and all working families have lost a great champion.
Throughout a lifetime of public service, Senator Kennedy made improving the lives of working men and women his cause. Health care for all, an end to discrimination, fairness and respect for workers, these were Senator Kennedy's passions, CWA President Larry Cohen said. "He has a special place in the hearts of CWA members," Cohen said.
 
"We met the day before President Obama's inauguration and he said he would complete two goals -- passage of the Employee Free Choice Act and real health care reform.  Paraphrasing his own words, that dream will go on, and we will do so in his name."
 
Every major advance, every step forward for working families came about because of his efforts. Medicare and Medicaid, family and medical leave, workers rights, retirement security, equal rights and fair treatment for women, civil rights for people of color, the list goes on and on, Cohen said.
Because of Senator Kennedy, millions of American families have been able to achieve the American Dream, afford an education for their children, are safer on their jobs and have a secure retirement, Cohen said. We will extend that legacy when we achieve one of Senator Kennedy's greatest passions, health care for all, he said.

 


CWA Vice President Catucci Passes Away
 
CWA Vice President Pete Catucci passed away earlier today, April 3, 2009.  Pete's two year battle with ALS took him from union halls to the White House in his ongoing battle to see the stem cell research ban lifted.  Shortly after he attended the White House signing his condition worsened. We will always remember the dignity, grace and humility he taught us during his battle.  Please pray for Pete and his family.
 

Click here to read about Pete Catucci 


 

 

 

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Click Here to Read the 2008 CWA Convention Report

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New District 2 Vice President Ron Collins
Click Here to read more about Ron.

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Pete Catucci Retiring as District 2 Vice President
Click Here to read about Pete.

 

 

 

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