FAIRPOINT COMMUNICATIONS REACHES
TENTATIVE AGREEMENTS WITH IBEW & CWA UNIONS REPRESENTING 2,500
MEMBERS
PORTLAND, MAINE
(March 24, 2008) - FairPoint
Communications, Inc. (NYSE:FRP) today announced it has reached tentative
agreements with the T-9 Council of the International Brotherhood of Electrical
Workers (IBEW) and Communications Workers of America (CWA), the two unions
representing the approximately 2,500 employees
who will be continuing employment after
FairPoint's acquisition of Verizon Communications' landline and certain related
operations in Maine, New Hampshire and Vermont. The transaction is expected to
close on March 31, 2008.
All parties involved
in the negotiations were able to come to acceptable terms on a number of key
provisions, including wage and pension increases for active employees,
healthcare benefits for active employees and retirees, and 401(k)
improvements.
"We are pleased we
have reached an agreement with the IBEW and CWA because of the crucial role the
employees represented by these organizations play in providing excellent
customer service. This agreement lays the foundation for good
relationships going forward. We're looking forward to closing the
transaction and welcoming these employees into the FairPoint family," said Peter
Nixon, president of FairPoint Communications.
"This
long-term agreement is a big step in alleviating the apprehension of our
membership in changing companies. Now that this is out of the way, we can
concentrate on making the transition in the three northern states as seamless as
possible for our customers," said Peter McLaughlin, chairman of IBEW
SCT-9.
"CWA is very pleased
with the agreement we've been able to work out with FairPoint," said Chris
Shelton, District 1 vice president. "We know the members we represent are
the best in the world at what they do. With their experience and expertise
and FairPoint's commitment to improving service to Maine, New Hampshire and
Vermont, the future looks bright for telecommunication in northern New
England."
Both agreements are
subject to ratification by the respective unions membership.
About
FairPoint
FairPoint
Communications, Inc. is an industry leading provider of communications services
to rural and small urban communities across the country. Today, FairPoint owns
and operates 30 local exchange companies in 18 states offering advanced
communications with a personal touch including local and long distance voice,
data, Internet, television and broadband services. FairPoint is traded on the
New York Stock Exchange under the symbol FRP. Learn more at www.fairpoint.com.
This press release may contain
forward-looking statements by FairPoint that are not based on historical fact,
including, without limitation, statements containing the words 'expects,'
'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates' and similar
expressions and statements. Because these forward-looking statements involve
known and unknown risks and uncertainties, there are important factors that
could cause actual results, events or developments to differ materially from
those expressed or implied by these forward-looking statements. Such factors
include those risks described from time to time in FairPoint's filings with the
Securities and Exchange Commission ("SEC"), including, without limitation, the
risks described in FairPoint's most recent Annual Report on Form 10-K on file
with the SEC. These factors should be considered carefully and readers are
cautioned not to place undue reliance on such forward-looking statements.
All information is current as of the date this press release is issued, and
FairPoint undertakes no duty to update this information.
FairPoint has filed, and the SEC has
declared effective, a registration statement in connection with the proposed
merger. FairPoint urges investors to read this document and other
materials filed and to be filed by FairPoint relating to the proposed merger
because they contain and will contain important information. Investors can
obtain copies of the registration statement, as well as other filed documents
containing information about FairPoint and the proposed merger, at www.sec.gov,
the SECs website. Investors may also obtain free copies of these documents and
FairPoints other SEC filings at www.fairpoint.com under the Investor Relations
section, or by written request to FairPoint Communications, Inc., 521 E.
Morehead Street, Suite 250, Charlotte, NC 28202, Attention: Investor
Relations.
This communication shall not
constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction. No
offering of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended.
Source: FairPoint Communications,
Inc., www.fairpoint.com.
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