NH Regulators Approve Verizon-FairPoint Deal, Final Settlements Yield Additional $362 Million in New

Contact: Jeff Miller or Candice Johnson, CWA Communications, 202-434-1168, jmiller@cwa-union.org and cjohnson@cwa-union.org

The New Hampshire Public Utilities Commission's decision to approve the sale of Verizon Communications operations to FairPoint Communications represents the last regulatory approval required for the transaction to occur.  The transaction sparked a spirited debate about whether the sale was in the public's best interest and its future impact on economic development in three northern New England states.

Two unions, CWA and the International Brotherhood of Electrical Workers that together represent nearly 2,500 Verizon workers in Maine, New Hampshire and Vermont affected by the sale mounted a vigorous campaign that won allies among many political leaders and community organizations, urging regulators to "reject the proposed transaction as being contrary to the public good."  The sale, however, has now – with major revisions – obtained approvals from all requisite state and federal regulatory bodies.

"Efforts by union members, concerned elected officials, community and consumer groups, and thousands of residents and activists in Vermont, New Hampshire and Maine resulted in changes to the original deal that will help bring about quality service and support for northern New England customers," said CWA President Larry Cohen.

The New Hampshire PUC acknowledged labor's contribution to the debate in their decision: "Although they did not endorse the settlement agreement, in our judgment the Labor Intervenors' participation was key to the improved outcome."

"Those who united to raise their voices in opposition to the sale acted in the finest New England tradition of citizen participation," said Glenn Brackett, business manager of IBEW Local 2320 based in Manchester, NH.  "We can take comfort in knowing that because of our involvement, FairPoint will be stronger financially than it would have been under the original deal.  Verizon now has to put $362 million more into the deal and FairPoint has to cut its dividends by at least $200 million in order to reduce its debt."

FairPoint's financial position would have been improved even more if regulators had required Verizon to contribute $700 million to the deal as recommended by the Maine Public Advocate as opposed to the $362 million included in the final settlement.

The unions have created a chart showing how the new monies required by regulators in the three states are split between Verizon's added contributions of $362 million and FairPoint's new commitments of $610 million. 

Members of both unions will now have to make a transition to employment with FairPoint.  Significantly, the New Hampshire PUC recognized that FairPoint should meet its health care and other obligations to retirees by requiring FairPoint to establish an external trust fund to help cover its liabilities.

"I want to assure everyone that we will do everything possible to work constructively with Verizon and FairPoint for a smooth transition," said Frank Carroll, vice president of the IBEW's New England region.  "Our members will work with our new employer and regulators to ensure that customers obtain the highest quality and most advanced services that FairPoint can provide."

The chart showing the respective new financial commitments in each state by Verizon and FairPoint may be obtained by emailing Rand Wilson at rand@mindspring.com.  For more information about ending the digital divide visit: www.speedmatters.org