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California Cities Join CWA's Push for Telecom Jobs

Council members in 23 California cities have joined CWA, state legislators and the state Public Utilities Commission in expressing concern about the telecom industry's failure to create jobs and invest in capital projects.

"Infrastructure investment and job creation in the telecommunications industry are crucial to the future of the California economy," CWA District 9 Vice President Tony Bixler said. "CWA commends these cities for taking a stand to bring new jobs and investment to their communities."

In May 2002, the California PUC granted long distance giants AT&T and MCI WorldCom a large subsidy to encourage them to offer local telephone service. In exchange, the companies promised to add jobs and make investments in the state.

"Over a year after being granted an unprecedented subsidy, AT&T and MCI WorldCom have yet to fulfill their promise to invest in California," Bixler said. "Instead, they have been pocketing their enormous subsidy."

More than 2 million people live in the 23 cities where city councils have passed resolutions supporting CWA's position. "It is time for regulators and elected officials to heed these calls and take action," Bixler said.

Nationwide, capital spending by the telecom industry fell by 40 percent in 2001 and 2002, according to investment analysts. In the same period, telecom employers cut nearly 600,000 jobs.