Telecom News: Century Tel-Embarq Merger: Protecting Quality Jobs, Service Quality

Workers' bargaining rights, quality jobs, and service to customers are CWA's chief concerns about the pending merger between Century Tel and Embarq. Embarq workers are pictured here in North Carolina during a demonstration in 2007.

As Century Tel's acquisition of Embarq works its way through the approval process, CWA will intervene in the merger to protect the interests of the public and the jobs of more than 4,700 CWA members working at the companies.

The merger, expected to close by the end of the second quarter of 2009 (June), would create a company of more than 8 million access lines in 33 states. Century Tel currently serves customers in 17 states in the Midwest and West, and Embarq provides service in 16 states in the East.

CWA will intervene in states where public utility commission approval is required as well as before the Federal Communications Commission. The IBEW, which represents about the same number of workers at the companies, will work with CWA in ensuring that the $11.6 billion deal is good for workers and quality service, not merely stockholders.

A huge concern is whether the merged company plans to allocate enough resources and capital to improving service quality, building infrastructure, and building out broadband to urban and rural areas currently being served by the companies.

However, Century Tel is being very generous to shareholders. This year, the company announced a tenfold increase in its annual shareholders dividend to an amount considered out of line with the company's earnings.

"The company has done very little in terms of building out broadband access to rural customers," said Telecommunications Vice President Jimmy Gurganus. "The additional monies now being paid to shareholders are coming at the expense of improving high-speed Internet deployment, and improving service quality and building infrastructure," he said.

CWA and IBEW also will be working to ensure that the merged company will honor existing collective bargaining agreements, protect and increase employment levels, and continue the respectful collective bargaining relationship that exists at Embarq.