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Sprint-WorldCom Deal Collapses In U.S., Europe
The proposed mega-merger of WorldCom and Sprint has failed, blocked by CWA’s successful campaign that raised concerns among federal and state regulators in the United States and in the European Union.
After the U.S. Department of Justice filed suit in federal court to block the merger, and following indications that the European Commission also planned to reject the proposal, the two companies withdrew their merger bid.
The international campaign had the support of the entire European trade union movement, which lobbied members of the European Parliament on the harm this merger would have done to Internet development, particularly in Europe.
CWA made the case to federal and state regulators that the merger would cause irreparable harm not only to Internet and long-distance competition, but also to consumers. The merger would have given WorldCom monopoly control over the Internet backbone, a move that would have restricted access, stifled innovation and harmed competition, CWA pointed out.
Sprint local union members and CWAers were active throughout the campaign, holding rallies and informational picketlines and attending the shareholder meetings of all three companies — Sprint, WorldCom and MCI. At the June 13 Sprint meeting, a resolution introduced by Local 3682 requiring shareholder approval of any golden parachute deals that resulted from a change in company control won 31 percent of the vote.
In another telecom development, local union presidents representing some 38,000 workers at US West met with officials of Qwest Communications for two days of presentations and questioning, reported John Thompson, CWA District 7 vice president. The merger of Qwest and US West was completed on June 30; the new company combines US West’s service in 14 states with Qwest's broadband, Internet data, video and voice communications operations.
Thompson said the union received assurances early in the merger process that the new company wanted to work in partnership with CWA members to expand communications services; CWA’s contract with US West remains in effect into August 2001.
After the U.S. Department of Justice filed suit in federal court to block the merger, and following indications that the European Commission also planned to reject the proposal, the two companies withdrew their merger bid.
The international campaign had the support of the entire European trade union movement, which lobbied members of the European Parliament on the harm this merger would have done to Internet development, particularly in Europe.
CWA made the case to federal and state regulators that the merger would cause irreparable harm not only to Internet and long-distance competition, but also to consumers. The merger would have given WorldCom monopoly control over the Internet backbone, a move that would have restricted access, stifled innovation and harmed competition, CWA pointed out.
Sprint local union members and CWAers were active throughout the campaign, holding rallies and informational picketlines and attending the shareholder meetings of all three companies — Sprint, WorldCom and MCI. At the June 13 Sprint meeting, a resolution introduced by Local 3682 requiring shareholder approval of any golden parachute deals that resulted from a change in company control won 31 percent of the vote.
In another telecom development, local union presidents representing some 38,000 workers at US West met with officials of Qwest Communications for two days of presentations and questioning, reported John Thompson, CWA District 7 vice president. The merger of Qwest and US West was completed on June 30; the new company combines US West’s service in 14 states with Qwest's broadband, Internet data, video and voice communications operations.
Thompson said the union received assurances early in the merger process that the new company wanted to work in partnership with CWA members to expand communications services; CWA’s contract with US West remains in effect into August 2001.