Vermont Business Magazine Following months of negotiations between FairPoint and its northern New England Unions, and after talks remained deadlocked more than three weeks after the prior collective bargaining agreements expired, the company announced Wednesday that it will implement its final proposals, which have been repeatedly rejected by the unions. FairPoint said in a statement that this action is permitted by federal labor law when there is no meaningful prospect for a negotiated settlement. The two sides, which have been far apart in their negotiations, had met earlier in the day in Nashua in an attempt to reach a new deal or at least move the process forward. The two unions representing workers have received approval from rank and file members to go on strike, but have not done so yet. A union statement issued after FairPoint's decision was terse in its assessment of the company's actions, but did not indicate that a strike was imminent.The new labor plan began just after midnight Thursday morning.
FairPoint has sought to reduce benefit and retirement costs by shedding its legacy pension plan with the unions, while aligning its union benefit plans with its non-union workers. The unions, meanwhile, object to FairPoint wanting to hire non-union workers for positions currently held by unionized workers.Unions represent nearly 2,000 FairPointemployees in Maine, New Hampshire, and Vermont.
FairPoint has told the unions that it would prefer to reach collective bargaining agreements and that it has implemented its proposals only because it sees no likelihood of agreement given the unions' bargaining position.FairPoint said it has identified labor costs as a key factor in competing to provide 21stcentury telecommunications and broadband services to its customers.
In a statement from FairPoint, Corporate Communications DirectorAngelynne Amores Beaudry said:"The Company would prefer negotiated agreements but feels the offer being implemented, which includes 1. no change to the current wage rates for current employees, 2. substantially the same benefit plans, including medical, as are available to management employees, 3. a freeze of the existing defined benefit pension plan, while preserving employees' current accrued benefits, and 4. elimination of retiree medical for current employees, is fair to its hard-working and valued workforce. It is regrettable that the issues could not be resolved through bargaining."
"FairPoint is proud to be a part of the fabric of the northern New England community and our highest priority is our service commitment to our residential and business customers,"Amores Beaudry said.
The unions, issue their own statement Thursday: "We strongly disagree with the company. We have not reached impasse. The company should stay at the table and continue to work with us to reach an acceptable agreement," said Peter McLaughlin, Business Manager of International Brotherhood of Electrical Workers (IBEW) Local 2327 in Augusta and chair of the unions' bargaining committee.
The unions stated they have filed charges with the National Labor Relations Board accusing the company of violating federal law by not bargaining in good faith.
"We are deeply disappointed that FairPoint has walked away from the bargaining process," said Don Trementozzi, President of Communications Workers of America (CWA) Local 1400. "We have worked tirelessly for months to negotiate an agreement that is fair to our members, our customers, and the company. We believe the company never intended to reach an agreement with us, but has been pushing towards this outcome all along."
According to union leaders, the company has rejected every significant proposal the union has put forward since bargaining began in April and has refused to offer any counter proposals since before the contract expired on August 2.
"The company has refused to bargain with us, and their negotiators have even attempted to intimidate and bully us throughout the process," said Glenn Brackett, Business Manager of IBEW Local 2320 in Manchester, NH. "But our members will not be intimidated by this company. They are determined to stand up for good jobs and our customers."
Union leaders say FairPoint management wants to outsource hundreds of good jobs in Northern New England to low wage, out-of-state contractors. The company’s proposals would be devastating for communities that depend on well-trained and experienced workers to build and maintain their landlines, cell towers, DSL, and even 911 systems.
"FairPoint's employees are some of the best trained, most experienced telecommunications workers in this country," said Mike Spillane, Business Manager of IBEW Local 2326 in Burlington, VT. "But FairPoint executives are determined to outsource their work to low road contractors no matter the impact on customers and our communities. We will continue to fight their attempts to outsource our future."
The union stated its bargaining team will meet with its attorneys and other key advisors on Thursday morning to assess the situation and decide on next steps. In the meantime, the union has notified all members to continue working until further notice.
IBEW System Council T9 represents nearly 1,700 FairPoint employees in Maine, New Hampshire, and Vermont. CWA Local 1400 represents nearly 300 employees in the three states.
SOURCES: FairPoint Communications, Inc.NASHUA, N.H.,Aug. 28, 2014/PRNewswire/.IBEW Local 2326