Unions, Management Look to Bolster FairPoint’s Recovery

February 8, 2010

Following months of tense negotiations, FairPoint’s labor unions and management have come to an agreement to help the bankrupt company bounce back by increasing cooperation, restructuring wages and extending the contract with workers for another year, pending ratification by IBEW members.

The plan to revive the ailing company establishes a Joint Committee for Operational Savings that will “pursue all ideas to reduce costs, improve revenue and increase productivity,” the company states in memos released this week. The current contracts will be extended an additional year for IBEW members at Manchester, N.H., Local 2320; Montpelier, Vt., Local 2326; and Augusta, Maine, Local 2327. This year’s general wage increase is deferred until 2014, the last year of the contract.

“Although FairPoint’s financial and operational problems had nothing to do with our wages or working conditions, once again we’ve gone the extra mile to help FairPoint get back on its feet,” said Pete McLaughlin, chairman of IBEW System Council T-9 and business manager of Local 2327. “Our goals were not only to protect our members but to restore financial and operational stability, improve service to customers and expand broadband availability.”

The company’s financial woes were compounded by an inability to deliver quality customer service in the wake of the Verizon sale. FairPoint couldn’t replicate the intricate computer systems and tricky work processes that made Verizon successful in New England, contributing to a Chapter 11 filing last October.

Solis Says Unions Benefit Workers

Labor Secretary Hilda Solis, in a Jan. 22 statement, said the latest report makes clear why the Obama administration supports passage of the proposed Employee Free Choice Act (H.R. 1409, S. 560).

The bill would amend the National Labor Relations Act to give workers the option to choose union representation by signing union authorization cards and also includes language providing for binding arbitration of first contracts and increasing penalties for employers that unlawfully discharge or discriminate against employees during organizing drives.

Solis cited the report's figures showing that union-represented workers have higher earnings than those not represented. She said that “coupled with data showing that union members have access to better health care, retirement and leave benefits, these numbers make it clear that union jobs are good jobs.”

In 2009, union-represented wage and salary workers usually earned about 21 percent more per week than those who were unrepresented, in both the private sector ($845 versus $697) and government ($943 versus $782), BLS said.

“As workers across the country have seen their real and nominal wages decline as a result of the recession, these numbers show a need for Congress to pass legislation to level the playing field to enable more American workers to access the benefits of union membership,” Solis said.

“This is about what's happening to real wage earners across the country, not just unions or union membership,” AFL-CIO President Trumka said.

In response to Solis' statement, Republicans in Congress who oppose the legislation criticized the administration's approach.

“[T]he Obama Administration continues to use America's troubled economy and the ongoing plight of American workers to promote the wishes of their special interest allies,” said Rep. John Kline (R-Minn.), a member of the Education and Labor Committee.

EFCA “remains a threat to job creation, and it would be irresponsible for Washington Democrats to pursue this policy,” Kline said.

Kline and other Republican committee members Jan. 20 held a forum where speakers argued that the administration's favoritism toward unions has stalled economic recovery by causing investors to withhold capital that could fund new jobs as they anticipate higher taxes and more stringent government regulations.

Your non-monetary donations will be sent to the Haitian Association and will be transported via military transport to Haiti and distributed to the proper relief organizations.  Chad Bolen, a member in Tampa North is serving as a collector of donations and will take all donated items to the distributor.  If you would like to donate, you can contact the Union Hall or contact the numbers below and we will make arrangements to collect from different work locations throughout our areas.  Below is a list of items that are needed most.

MEDICAL ITEMS - bandages, gauze, gloves, masks, tylenol, aspirin, antibacterial soap, eye wash, hand sanitizer, peroxide, first aid kits, and antibiotic ointment for children and adults.

PERSONAL HYGIENE PRODUCTS - soap, shampoo, toothpaste, toothbrushes, toilet paper, sanitary pads, diapers, baby wipes, underwear (unused) for men/women and children, and deodorant.

OUTDOOR ITEMS - tents, tarps, canvas, umbrellas, ponchos, linens, clean shoes & clothing, disposable grills, candles, lighters, matches, bug repellant, flashlights, batteries, battery radios.

FOOD - non-perishable food, baby food, baby formula, powdered milk, peanut butter, crackers, energy bars, pedialyte, gatorade powder, rice, corn, beans.

Contact Info:
Chad Bolen          cell - 813.380.0686       email - chadbolenhotmail [dot] com
Michelle Bolen      cell - 813.789.2779       email - mbonnard0908hotmail [dot] com

As part of an overall Company payroll consolidation, the paystubs that employees receive have been redesigned and will have a standard format. You will receive a prototype of this stub once it becomes available. Please be assured that all state required information has been retained on the stub.

With the development of the consolidated payroll system, employees will be able to access and print their new paystubs two days prior to their pay day. For those employees who have their pay direct deposit, their paystubs will be available on-line for access either from work or home. If the employee needs a paper copy of the paystub, they will be instructed to contact Payroll Services to make that request. Payroll Services will ensure that the employees records reflect the change for all future paystubs.     

Currently, employees can direct their pay to up to 4 different bank accounts. With this enhanced system they will be able to direct their pay to 10 different bank accounts.

Employees will receive a communication advising them about the redesigned paystub and these other changes in early February 2010. They will be directed to contact the VSO Payroll Services through the About You website or to call 1-800-932-7947 if they have questions about these payroll processing changes.