NORWALK, Conn.--(BUSINESS WIRE)--Frontier Communications Corporation (NASDAQ:FTR) and the International Brotherhood of Electrical Workers (IBEW), AFL-CIO Local 824 are pleased to announce the signing of an agreement that will benefit IBEW-represented employees in Florida and Frontier’s future customers in the state. The agreement is an important step forward in the process to complete Frontier’s planned $10.54 Billion acquisition of Verizon’s wireline business and assets in California, Florida and Texas. The IBEW supports the proposed acquisition and believe it is in the public interest and the interest of its members. The acquisition is expected to close at the end of the first quarter 2016.
The IBEW Local 824 represents approximately 2,700 Verizon workers in Florida; approximately 17,000 workers at private employers and public utilities in the State are represented by various IBEW locals. This agreement provides the IBEW Local 824 represented workforce at Verizon assurances for the acquisition and how it will affect them. It also includes operational benefits to allow Frontier to implement its local engagement model in the new Florida markets. Reaching this agreement early allows these dedicated men and women to focus on continuing to deliver state-of-the-art broadband, voice and video services to Frontier’s future residential and business customers.
Frontier has agreed to honor and extend current collective bargaining agreements. Highlights of the latest agreement include:
- The addition of at least 100 new union jobs in Florida;
- Employee job security;
- A grant of 100 shares of restricted stock of Frontier Communications Corporation to all transferring employees;
- Competitive wage increases;
- Additional investments in employee training by Frontier;
- Frontier continues its commitment to a 100% U.S.-based workforce.
Dan McCarthy, President & Chief Executive Officer of Frontier stated, "Productive partnerships between unions and public companies are critical to American companies achieving a competitive advantage. Working together, leaders from Frontier Communications, the IBEW International and IBEW Local 824 are proving that we can lay the groundwork for a healthy, sustainable and successful future. Together, we look forward to completing the acquisition and working to make it a success for all involved."
Danny Alfonso, Business Manager of IBEW Local 824 said, “With the commitment to quality and customer service that Frontier brings to their current customers, our members are looking forward to serving Frontier’s future Florida customers. Our members have and will continue to provide excellent service to the Florida citizens. This agreement shows that by working together with Frontier, we can achieve mutual goals that benefit customers and employees.”
Both Frontier and the IBEW leaders collaborated on important operational and economic issues, noted McCarthy but the most important shared goal was putting the customer first. “I am proud we are putting our future customers at the center of all we do and delivering the highest-quality, most reliable communications services in our expanded areas,” McCarthy said.
“We believe that labor and management can achieve more by working together, not against each other,” said IBEW International President Lonnie R. Stephenson. “This agreement is a win for workers, a win for management and, most of all, a win for the consumer.”
The agreement between Frontier and IBEW is contingent upon applicable state and local approvals and the consummation of the proposed transaction.
About Frontier Communications
Frontier Communications Corporation (NASDAQ: FTR) offers broadband, voice, 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 28 states. Frontier's approximately 18,200 employees are based entirely in the United States. More information is available at www.frontier.com.
About International Brotherhood of Electrical Workers
The IBEW represents approximately 750,000 active members and retirees who work in a wide variety of fields, including utilities, construction, telecommunications, broadcasting, manufacturing, railroads and government. The IBEW has members in both the United States and Canada and stands out among the American unions in the AFL-CIO because it is among the largest and has members in so many skilled occupations.
Forward-Looking Statements
This document contains "forward-looking statements," related to future, not past, events. Forward-looking statements address our expected future business and financial performance and financial condition, and contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," or "target." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These risks and uncertainties include, but are not limited to: Frontier’s ability to complete the acquisition of Verizon’s California, Florida and Texas wireline operations, including the ability to complete the financing of the acquisition; the ability to successfully integrate the acquired operations into Frontier’s existing operations; the sufficiency of the assets to be acquired from Verizon to enable the combined company to operate the acquired business; the ability 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 ability to obtain, delays in obtaining or adverse conditions contained in any required regulatory approvals for the Verizon transaction; and the other factors that are described in our filings with the U.S. Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update or revise these forward-looking statements.
