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Global Crossing Collapse Sparks Probe
CWA Local 1170 members in Rochester, N.Y. got a boost from Rep. Louise Slaughter (D-N.Y.) who held a press conference at the local's offices this week to spotlight the former Global Crossing workers' losses in 401(k) stockholdings, and to join CWA and the AFL-CIO in calling for congressional action to protect workers' retirement security.
The 800 workers in Rochester, and another 200 in Iowa and Minnesota, lost much of the value of their 401(k) savings after Frontier Communications in 1999 was sold to Global Crossing - now bankrupt. Company 401(k) contributions were made solely in company stock, with workers prevented from selling the stock for five years.
The Rochester workers fortunately still have a traditional pension plan to bolster their retirement - but only because they fought a 18-month battle beginning in 1995 when Frontier was formed out of the old Rochester Telephone Co. Frontier unilaterally froze the old pension plan, demanding to replace it with a 401(k).
A CWA legal battle and corporate campaign finally resulted in a new traditional pension plan jointly controlled by the company and the union. Rochester workers maintain their vested benefits from the frozen plan and pension benefits from the negotiated joint plan, along with the 401(k) savings plan.
"We knew we won a victory, but we didn't know at the time just how important that victory was," said Local 1170 President Linda McGrath at the Feb. 11 news conference with Slaughter. She said workers also put savings in the 401(k) plan "because they had faith in their employer," but now they feel betrayed.
Global Crossing sold the company to Citizens Communications in 2001 but the savings contributions remain locked in Global Crossing stock.
CWA and other unions are working with various members of Congress on legislation to give workers additional pension and savings protections. Rep. Slaughter and other lawmakers are calling for a congressional hearing into questionable accounting practices by Global Crossing.
CWA attorneys are also looking at possible legal actions surrounding savings plan losses by the former Global Crossing workers.
The 800 workers in Rochester, and another 200 in Iowa and Minnesota, lost much of the value of their 401(k) savings after Frontier Communications in 1999 was sold to Global Crossing - now bankrupt. Company 401(k) contributions were made solely in company stock, with workers prevented from selling the stock for five years.
The Rochester workers fortunately still have a traditional pension plan to bolster their retirement - but only because they fought a 18-month battle beginning in 1995 when Frontier was formed out of the old Rochester Telephone Co. Frontier unilaterally froze the old pension plan, demanding to replace it with a 401(k).
A CWA legal battle and corporate campaign finally resulted in a new traditional pension plan jointly controlled by the company and the union. Rochester workers maintain their vested benefits from the frozen plan and pension benefits from the negotiated joint plan, along with the 401(k) savings plan.
"We knew we won a victory, but we didn't know at the time just how important that victory was," said Local 1170 President Linda McGrath at the Feb. 11 news conference with Slaughter. She said workers also put savings in the 401(k) plan "because they had faith in their employer," but now they feel betrayed.
Global Crossing sold the company to Citizens Communications in 2001 but the savings contributions remain locked in Global Crossing stock.
CWA and other unions are working with various members of Congress on legislation to give workers additional pension and savings protections. Rep. Slaughter and other lawmakers are calling for a congressional hearing into questionable accounting practices by Global Crossing.
CWA attorneys are also looking at possible legal actions surrounding savings plan losses by the former Global Crossing workers.