International Brotherhood of Electrical Workers

Communications Workers of America

News Advisory

For Immediate Release:                                                                    Contact:

October 26, 2009                                                                                Rand Wilson, (617) 803-0799

Crushing debt and organizational chaos led to FairPoint bankruptcy

After months of speculation, FairPoint has finally declared bankruptcy.  As the unions have consistently maintained, FairPoint's problems were caused primarily by its crushing debt and an organizational chaos that adversely affected revenues and operations.  Despite waging an all out campaign to oppose the sale, thousands of former Verizon workers have spent the last year-and-a-half working to make their new company succeed. 

Now that bankruptcy is at hand, it is imperative that management and labor move forward in a way that will restore financial and operational stability, improve service to customers and expand broadband.  Some officials have suggested concessions from employees, but union leaders have been clear.

"If FairPoint is to recover from bankruptcy and get back on its feet, it will need the focused dedication and professionalism of its workforce," said Pete McLaughlin Chairman of IBEW SCT-9.  "Demanding cuts in labor costs from employees who aren't in any way to blame for the company's woes is the wrong way to go.  The overwhelming burden of billions of dollars in crushing debt cannot be solved by 'nickel and dime-ing' our union contracts.  And such attacks will be counter-productive to any attempt to improve operations and the quality of service for our customers."

Wall Street vs. Main Street?

With bankruptcy, FairPoint's lenders will likely move firmly into the drivers' seat.  Without coordinated action by public officials, regulators, management and labor, the interests of Wall Street could take precedence over the interests of our communities and customers.

FairPoint's business and residential customers must be protected against continued dysfunctional operations that have inadequately served customers needs.

"We'll use every means at our disposal to mobilize our elected officials and the public to defend quality service," said Don Trementozzi President CWA Local 1400.  "Our union and legal experts are on deck to provide a no-nonsense analysis of events as they unfold.  We won't let the public be fooled again."