Union Leaders Cautiously Optimistic About Sale of FairPoint to Illinois-Based Consolidated Communications

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For immediate release, December 5, 2016

Portland, ME—Leaders of unions representing telecom workers in Maine, New Hampshire, and Vermont responded to the announcement by Consolidated Communications Holdings Inc. that it plans to purchase FairPoint Communications in 2017. The sale is subject to approval by both companies’ shareholders and state regulators.

“It’s clear that the ill-advised sale of Verizon to FairPoint in 2008 has had a profound negative impact on workers and consumers in Northern New England. Just last month, FairPoint announced another major layoff of nearly 10% of its workforce even as regulators continue to investigate their service quality failures,” said Peter McLaughlin, Business Manager of International Brotherhood of Electrical Workers (IBEW) Local 2327 in Maine. “Therefore, we view this potential sale with cautious optimism. We are hopeful that Consolidated will work with us to create and maintain good jobs in our communities and really improve the quality of service that our customers deserve.”

The unions confirmed that the recent layoff announced by FairPoint would go forward as planned.

According to Don Trementozzi, President of Communications Workers of America (CWA) Local 1400, “Our members and our customers have been through the wringer with FairPoint over the last eight years, and our primary concern is that this transaction result in a more stable company that puts a priority on strengthening communities, not enriching Wall Street hedge fund owners.”

Union leaders said that they are looking closely at Consolidated’s finances, technical capacity, and history of labor relations as well as at the regulatory requirements for the sale. In 2007, the unions partnered with community groups to “Stop the Sale” of Verizon to FairPoint. They predicted the sale would be devastating for workers and consumers, but the sale went ahead and FairPoint declared bankruptcy in 2009. The company’s effort to cut labor costs by slashing pay and benefits and hiring unlimited contractors led to an historic four-month strike in the winter of 2014-15.

“As we were back in 2007 during the Verizon transaction, we will be deeply involved in the process to ensure a fair deal for FairPoint workers no matter the outcome of this transaction,” said Steve Soule, Business Manager of IBEW Local 2320 in New Hampshire. “While we certainly welcome FairPoint’s departure from Northern New England, we’ll be vigilant in examining any potential new owner and fighting for fairness for our members and our communities.”

Leaders emphasized their willingness to cooperate with Consolidated should the transaction succeed with shareholders and regulators. “As long as Consolidated is ready to engage with our members and our customers with respect and fairness, we welcome this opportunity to help re-build the company and make it the success it has been in the past,” said Mike Spillane, Business Manager of IBEW Local 2326 in Vermont.