FairPoint Communications Responds to Public Letter from Congresswoman Pingree and Clarifies Facts
PORTLAND, Maine, Dec. 23, 2014 /PRNewswire/ -- FairPoint Communications, Inc. today sent the following letter to Congresswoman Pingree in response to her public letter dated December 19, 2014:
Dear Congresswoman Pingree,
Thank you for your recent letter. We are aware of your close relationship with the unions, so we appreciate this important opportunity to share with you the critical need to bring FairPoint's benefit costs into the mainstream and clear up any misinformation you may have around negotiations with our unions. With more facts, it is my hope that you will come to appreciate that there is much more to these issues – and much more at stake for Maine's economy – than what you may have been led to believe.
NEGOTIATING IN GOOD FAITH
You say in your letter that you are deeply disappointed that the strike has gone on as long as it has. We share your disappointment but need to point out that the unions called for the strike and when the unions are ready will call for its end.
You also assert that the unwillingness to compromise seems to be on the part of the Company. This simply isn't true. Between April 25 and August 2, we made multiple unilateral concessions without any meaningful counterproposals from the unions, all in an effort to reach successor agreements.
The time for empty and divisive union rhetoric has passed. It is time for the unions to make responsive and responsible proposals to the company. We are ready to work with them, as we have been from day one – any assertion to the contrary is simply untrue.
We have made numerous formal and informal efforts to reach agreement, all without success. On April 25, 2014, we made comprehensive proposals and worked diligently with the unions through 24 formal meetings at the bargaining table. We made an extraordinary effort to provide over 11,000 pages of detailed documentation to respond to the unions' various requests for information.
Our good faith efforts, however, were not reciprocated. The unions waited to make their first comprehensive counterproposal until August 2 – the day the contract expired, and still refused to make their wage demand. There is no explanation for this 100-day wait for a counterproposal other than delay. And, the two subsequent proposals made by the unions were more costly than the first. Put simply, it doesn't appear that the unions are serious about addressing FairPoint's need for substantive reform to the company's benefit costs.
Given their actions, you can appreciate why the unions' accusations that we have not bargained in good faith are unfounded. Indeed, all of the Unfair Labor Practice charges which the unions have filed against us which to date have been decided have been found to be without merit by Region 1 of the National Labor Relations Board.
Our priority has been to reach a resolution that addresses our core concerns so we can focus on being the 21st century telecommunications partner our customers want and northern New England's economy needs and deserves.
In fact, on November 18, at the urging of federal mediators, we sat down once again with union leadership under the impression that the unions were ready to offer meaningful counterproposals. The unions publicized and built up this meeting. We were hopeful but, like so many times before, the unions offered nothing – not a single suggestion. Rather, the unions put out a 562-word press release within an hour of the conclusion of the meeting that included four quotes from union leadership attacking FairPoint and misleading the public. The unions appear to have had a predetermined outcome in mind – another publicity opportunity.
We have stated publicly and to the unions and it bears repeating once again: We remain willing to consider and constructively respond to any serious counterproposal that meaningfully addresses the company's core issues in this negotiation. To date, we have not received any such proposals. The ball is in their court.
It is the unions that chose to walk off the job in an effort to preserve contract provisions that are wholly inconsistent with today's competitive telecommunications landscape. It is the unions that will determine when they return to work.
BETTER SERVING MAINERS
We understand the importance Maine places on FairPoint's ability to provide outstanding telecommunications services, and we are working day and night to meet and exceed those expectations. Serving our customers and communities is our top priority and the importance of addressing our pre and post-strike service challenges are central to that effort.
You suggest in your letter that we are pushing to outsource jobs to less experienced contractors. That simply isn't true. In fact, the flexibility provided by our implemented proposals to bring in a supplemental contractor workforce to address needs like the weather-driven spikes we've experienced in the past few weeks will help us better serve communities in Maine. That said, despite the unions' outrageous claims, it is important to note that our subcontracting proposal would not cause the layoff of any union employees.
We will continue to make every effort we can to improve service quality now and in the future.
THE ECONOMIC REALITY
Above all, we want you to understand the economic reality of this situation – it involves FairPoint's ability to be the 21st century telecommunications provider Maine's economy needs, and what Mainers want and deserve.
The reality is that FairPoint cannot give in to the demands of our striking unions. The benefits they demand are a barrier to the telecommunications services Mainers and Maine's economy need now and in the future.
A union leader recently referred to the contracts for which they have walked away from their jobs to maintain – holdovers from the long-gone days of monopoly landline telephone service – as "the richest in the country." We don't know if that is so, but we do know that demands for further wage increases over their $82,500 average pay in 2013; for unlimited paid sick time off and no meaningful contributions toward health care premium costs, among other demands, are not within the mainstream of a highly competitive telecommunications market and are wholly out of step with the realities of most working Mainers.
The details of what the strikers could return to if they chose to come back is completely contrary to claims of slashed wages and benefits. This is what the strikers refused and could return to:
- No reduction in base wages for current employees;
- Competitive wages for NEW employees that will include increases at six-month intervals with an average annual base pay of nearly $58,000 in the first four years of employment, plus overtime and bonus opportunities;
- A comprehensive medical plan with FairPoint paying almost 80% of premiums on average for employees and their families, which is more generous than for our other non-union employees, including management;
- A mainstream 401(k) plan with a dollar-for-dollar company match for up to 5% of the employee's eligible pay; and
- Five paid sick days per calendar year for personal illness, four paid personal days, ten paid holidays and up to five weeks of paid vacation time depending on tenure.
The unions choose to mock these wages and benefits. We think most objective Mainers would agree that these are good jobs and careers that can and do support Maine families.
Again, thank you for the opportunity to offer these critically important facts. I hope we can count on you to continue to put the economic interests of all Mainers first.
Sincerely,
Paul Sunu
Chief Executive Officer
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fairpoint-communications-responds-to-public-letter-from-congresswoman-pingree-and-clarifies-facts-300013631.html
SOURCE FairPoint Communications, Inc.
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