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Frontier Communications, Local 1298 reach deal on contract [New Haven Register, Conn. :: ](New Haven Register (CT) Via Acquire Media NewsEdge) June 26--Frontier Communications has struck a deal with Local 1298 of the Communications Workers of America to extend a contract that the union's members have with A&T, which is selling the Stamford-based telecommunications company its land line phone business and UVerse television product. Local 1298's contract with AT&T was set to expire in April 2016, but the agreement between the union and Frontier extends the length of that deal to April 2018. The agreement also calls for: -- The same benefits, pension and retiree medical plans that are already in place, plus wage increases of 2.5 percent and 2.25 percent for the two years that the contract is extended. -- Healthcare benefit costs that are in place in 2016 will remain unchanged through 2018. Eligible retirees who leave during the terms of the agreement will pay what active union members pay for the life of the agreement. -- The company agrees to add 85 new union jobs, with 75 to be hired within six months of the time that the AT&T-Frontier deal closes. -- Frontier commits to maintain a union workforce size of 2,433, which includes the 85 new employees and no layoffs for any existing employees through April 2018. -- All union and non-union employees will receive 100 shares of Frontier stock when the deal closes, an estimated value of $600 per employee. The announcement of the agreement came on the eve of the start of a state regulatory hearing on Frontier's proposed acquisition of AT&T's Connecticut assets. "We were up against a deadline; they know it and we knew it," said William Henderson, Local 1298's president. "I think they wanted to get the deal done before hearings started because after that, some things could happen that couldn't be controlled or taken back." Henderson's comment is thinly veiled reference to the fact that as recently as three months ago, the union was publicly calling for federal regulators to block the AT&T-Frontier deal. At the time, Henderson claimed the company wasn't providing enough information to allow the union to assess Frontier's financial capability and business sense to operate reliably in Connecticut. But with the deal reached and an assessment of Frontier's financial information complete, Henderson said the union will enthusiastically support Frontier's bid to get regulatory approval for the deal. "It's a partnership in which our members will work together with the company to develop a plan on how to provide the best service possible and build the business one customer at a time," he said. Daniel McCarthy, president and chief operating officer of Frontier, said the company is pleased that the union will support its deal with AT&T. "Our discussions with the CWA about the Connecticut acquisition have been open, honest and ongoing," McCarthy said in a prepared statement. "We look forward to a strong partnership that will mean the best service and products for our customers and their evolving communications needs." The deal is expected to close in the fourth quarter of this year and also needs the approval of the Federal Communications Commission, in addition to that of the state's Public Utilities Regulatory Authority. After the close of the transaction, Frontier will employ nearly 3,000 people in Connecticut, serving approximately 1 million customers in the state. Call Luther Turmelle at 203-789-5706. ___ (c)2014 the New Haven Register (New Haven, Conn.) Visit the New Haven Register (New Haven, Conn.) at www.nhregister.com Distributed by MCT Information Services |