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CWA Wants FCC to Deny Satellite TV Merger
Citing concerns for consumers and workers, CWA is urging the Federal Communications Commission to deny a monopoly merger plan by the country's two largest providers of satellite television service.
Hughes Electronics Corporation, a division of General Motors, and EchoStar would become one entity controlled by EchoStar under the proposal. The merger would combine the only two national and competing broadcast satellite companies - EchoStar's DISH Network and Hughes' DirecTV - into one provider servicing 90 percent of the market.
In addition to CWA and many other opponents, more than 80 members of Congress have expressed concerns about the plan. The FCC itself is skeptical and in early February ordered the companies to respond to a 10-page list of questions to back up their claims that merging would increase competition and improve service.
CWA, in its brief to the FCC, said the plan would clearly reduce competition and raise prices. "Consumers will have no alternative but to pay the price or lose access to multi-channel video programming," the union said.
The merger would be "a clear violation of U.S. anti-trust laws," CWA said, noting that in a near parallel proceeding, the U.S. Department of Justice sued to block the proposed merger between MCI WorldCom and Sprint. The DOJ said that merger would have "raised prices for millions of consumers and businesses."
Further, CWA questions EchoStar's commitment to workers' rights, noting that the company has refused to negotiate with CWA Local 1108, which won an election in May 2001 to represent a unit of installation and service technicians in Farmingdale, N.Y. The company "has taken actions designed to undermine employees' right to free association under the National Labor Relations Act, including discharge of a union activist without just cause and rescission of announced pay increases," CWA said.
Hughes Electronics Corporation, a division of General Motors, and EchoStar would become one entity controlled by EchoStar under the proposal. The merger would combine the only two national and competing broadcast satellite companies - EchoStar's DISH Network and Hughes' DirecTV - into one provider servicing 90 percent of the market.
In addition to CWA and many other opponents, more than 80 members of Congress have expressed concerns about the plan. The FCC itself is skeptical and in early February ordered the companies to respond to a 10-page list of questions to back up their claims that merging would increase competition and improve service.
CWA, in its brief to the FCC, said the plan would clearly reduce competition and raise prices. "Consumers will have no alternative but to pay the price or lose access to multi-channel video programming," the union said.
The merger would be "a clear violation of U.S. anti-trust laws," CWA said, noting that in a near parallel proceeding, the U.S. Department of Justice sued to block the proposed merger between MCI WorldCom and Sprint. The DOJ said that merger would have "raised prices for millions of consumers and businesses."
Further, CWA questions EchoStar's commitment to workers' rights, noting that the company has refused to negotiate with CWA Local 1108, which won an election in May 2001 to represent a unit of installation and service technicians in Farmingdale, N.Y. The company "has taken actions designed to undermine employees' right to free association under the National Labor Relations Act, including discharge of a union activist without just cause and rescission of announced pay increases," CWA said.