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Verizon Running Away From Rural America Causes Increasing Retirements, Worker Shortages

Phillip Dampier October 15, 2009 Public Policy & Gov't, Verizon, Video 4 Comments

Verizon’s ongoing effort to shed itself of legacy phone operations in smaller communities and states has triggered a wave of worker retirements, contributing to worker shortages in some regions.  In West Virginia in particular, Verizon’s plan to exit the entire state, leaving service in the hands of Frontier Communications, has many employees deciding the time to get out is now.  In August, Verizon was forced to bring in outside contractors to deal with repair work created by a storm-filled summer.  The decision met with strong opposition from the local Communications Workers of America Local 2001 union, which represents the remaining Verizon employees.

Verizon itself has been cost-cutting, and shed 7% of the workforce providing upkeep for the traditional phone network in just the past two years.  Many other employees are taking early retirement offers, or simply deciding to retire with their Verizon pension intact.

After the CWA Local 2001 unit ran an informational picket, the outside contractors were gone by September 19th.  The CWA has been negotiating with Verizon to create a Working Retiree program to provide staff support during difficult periods like those created from storm damage.

The CWA continues its strong opposition to Verizon exiting several states, selling its network to Frontier Communications.  The union believes the transaction will saddle those communities with a lower quality telecommunications future from a provider mired in the debt required to finance the transaction.

http://www.phillipdampier.com/video/WCHS Charleston CWA Protests Verizon Contractors 8-31-09.flv

WCHS-TV in Charleston, West Virginia covered the CWA informational picketing in late August. [1 minute]




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Other stories of interest:

  1. Unions Say Frontier-Verizon Deal Means Less Money for Broadband
  2. The Communications Workers of America Get It: Speed Matters
  3. Verizon Throwing Rural Customers Out, Frontier Agrees to Let Them Move In
  4. Verizon Sends Cautionary Signal Over Frontier Spinoff: “Integration Rarely Happens Overnight or Without a Hitch”
  5. Groton, Massachusetts Approves Verizon FiOS: Loudest Complaint? Why Isn’t It Here Yet.

Currently there are 4 comments on this Article:

  1. Rob says:

    I wonder if Verizon’s decision to leave West Virginia could be in part because it is time consuming and expensive to deal with Union demands? The consumer will get screwed in the end, but how can Verizon be forced to stay in a business they rather just sell off?

    • If the deal does not get approval, Verizon will remain the incumbent telco. The union demands, in this case, aren’t really onerous, considering Verizon itself made the decision to reduce employment on their traditional phone line business. When they have a worker shortage, they try and import contract workers who live outside of the area and have no experience with the character and condition of the local phone network.

      Here in Rochester, back when this area had Rochester Telephone, an independent phone company around for more than 100 years, we paid less for phone service than in either Buffalo or Syracuse and had outstanding service, and a local union for the technicians. They knew the network backwards and forwards, and the service was top notch.

      When Rochester Telephone became Frontier Communications, which was later sold to Global Crossings, which later went bankrupt, and then the telco was sold to Citizens (which later took the name Frontier, which works well when your primary customer lives way out in the frontier), it’s been a slow decline ever since.

      The union really has nothing to do with the decline in service — it’s management and their incredibly bad decisions. In fact, the union has been on the side of consumers throughout these telecom deals, warning people disaster would be forthcoming, and that is exactly what happened in New England, and beyond.

      • Rob says:

        I gave up on our local phone company 8 years ago when they refused to install a new line after 5pm or on weekends. Time Warner will install new service after 5pm or on Weekends. So will Directv. I switched to %100 cell service and couldn’t be happier.

        As technology improves and changes I wonder what these regional old phone companies are going to do? Many of them don’t offer cell service and their internet offerings are often slow DSL connections.

  2. Bob says:

    In Central Illinois, Verizon responsible for city street construction delays in 2 different cities.
    Don’t know cause, but suspect something like your story above.
    Washington’s project is still not done, as of October 15 2009.

    1) Washington, Illinois had a 7 week street construction delay.
    From July 21 2009, Washington (IL) TImes-Reporter
    http://www.washingtontimesreporter.com/news/x135763195/North-Cummings-Lane-construction-to-resume-next-week

    Quotes pulled from article , include quotes from City Engineer Ken Newman.

    “Construction on North Cummings Lane is seven weeks behind, and traffic will be rerouted beginning Monday in an effort to expedite the project.

    Work on the roadway has been suspended since June 1 due to “Verizon’s prolonged delays in relocating its underground phone cables,” said city administrator Bob Morris.

    A major component of the $890,000 project is the installation of a new storm sewer infrastructure, which will help drain water that collects in the ditches on either side of Cummings. But work on the new sewer system was at a stand still until Verizon moved its cables.

    Newman said the original goal date for completion of the project, including all cosmetic work such as grass seeding, was Oct. 2. Though Newman said that date is no longer realistic, he said he is still hopeful that all roadway and sidewalk work will be finished by then.

    “We are hopeful that the project will get mostly back on track,” Newman said. “We wanted the road work to be done by the beginning of school, but there’s no doubt that will continue until mid to late September.”

    Despite the seven-week construction hiatus, Newman said the city will not incur much extra cost, aside from a few thousand dollars to extend the inspection and engineering supervisor’s contract.
    “Under our construction contract, we don’t see that we’re going to have to pay a whole lot more,” he said.

    Still, Newman said, it has been a “frustrating process,” and Verizon had no excuse to delay its responsibilities for nearly two months.

    The telephone company had frequent communication, including several pre-construction meetings, with city officials in the months leading up to the project, Newman said. ”

    2)nearby city of Morton, Illinois had an 8 week street construction delay.
    From July 15 2009 Morton (IL) Times-News
    http://www.mortontimesnews.com/news/x1885897304/Jefferson-Street-closed-three-months
    See

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