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Frontier CEO Blames Employees for Company’s Poor Performance; Bonuses Cut, Investigations Begin

Phillip Dampier March 21, 2017 Broadband Speed, Consumer News, Frontier, Rural Broadband, Video 50 Comments

The second half of 2016 shows losses in broadband and television customers.

Frontier Communications CEO is blaming employees for the company’s deteriorating financial condition and operating performance and has allegedly dropped bonuses and merit pay increases for lower-level employees.

Sources inside Frontier Communications tell Stop the Cap! Frontier CEO Dan McCarthy notified employees in email on March 2 — one week before employees were expecting to receive their annual bonus — the company would no longer be providing bonus compensation for “lower banded management employees.”

“He implied that he too was affected but I highly doubt that is the case,” one source tells us. “We weren’t notified via a ‘Town Hall’, no conference call, no face to face with our managers, only a cowardly e-mail sent from behind a desk thousands of miles away. Keep in mind that people use that to pay house taxes, medical bills, pay off other bills, pay college tuition, etc, and a week before we were slated to get it we’re told that it isn’t coming.”

McCarthy has been on the hot seat with Wall Street for weeks after reporting yet another quarter where many of Frontier’s most profitable customers are fleeing faster than the company can replace them with new ones. McCarthy also told investors that many of Frontier’s losses in the last quarter were due to the company finally disconnecting service and writing off customers who haven’t paid their Frontier phone bills for as long as a year in acquired former Verizon territories in Florida, Texas, and California.

McCarthy

“There was certainly no suggestion that the big acquisition would pay off in the company’s Q4 earning report when subscriber counts, average revenue per residential user, and quarter-over-quarter revenue all fell,” wrote Daniel B. Kline of TMFDankline. “That has been the pattern in all three quarters since the Verizon deal closed, and while McCarthy has done an excellent job controlling expenses, his excuses for the drop in subscribers have started to sound a bit hollow.”

That effort to “control expenses” may be coming at the expense of customers that Frontier is depending on to stay in business.

New York Attorney General Eric Schneiderman last month announced the state was reviewing Frontier’s performance in western New York. A Rochester television station has aired more than a half-dozen stories about deteriorating service quality at Frontier since last summer. After airing the first few stories, the station was inundated with hundreds of complaints about Frontier’s spotty broadband and phone service.

News10NBC (WHEC-TV) reported it can take weeks for a Frontier technician to show up on a service call. Customer service is no help and customers are not getting the services they paid to receive.

Frontier was also implicated last month in knocking a Rochester area radio station off the air. After the company first blamed the radio station’s equipment for the problem, Frontier eventually admitted its own “old infrastructure” was responsible for outages that interrupted broadcasts for hours at a time.

Frontier’s stock continues its descent.

Schneiderman has been focused on keeping New York’s ISPs honest about their speed claims and performance, but service reliability is also increasingly an issue, especially after high winds in a recent storm in western New York left nearly half of the Rochester metro area without essential utilities for several days. Infrastructure upkeep, particularly aging utility poles, is now under investigation by the state’s Public Service Commission. Early evidence revealed local utilities may have underinvested in pole maintenance for years due to cost cutting. Some utility poles in western New York are well over 50 years old, originally placed in the 1950s and 1960s. Hundreds failed in the high winds.

Frontier’s track record of blaming others for their own problems has not been well-received by employees.

“Maggie Wilderotter [former CEO of Frontier Communications] was bad but McCarthy’s leadership is erratic and catastrophic,” shares another Frontier middle management employee wishing to stay anonymous. “McCarthy was defending the regional management autonomy approach as a unique strength for Frontier last summer, now he’s declared that is inefficient and is centralizing management decisions at corporate headquarters. He was selling Wall Street on Frontier’s IPTV project in 2016 by promoting expanded service territories. Now that project is on hold and there are signs Frontier is pulling back on meaningful and long overdue broadband speed upgrades. He recently announced he was reorganizing residential and commercial sales units, something our competitors did long ago and will only disrupt things at Frontier even more. Poor customer service was the result of “on-shoring” our call centers? Not exactly. Poor training and inadequate support have left our call center employees unable to properly handle customer concerns. He also consistently downplayed how nightmarish the Verizon conversion was for our new customers in Florida, Texas, and California. It was bad planning, bad vision, and poor execution and the buck stops with our CEO.”

Another source tells us:

“We worked 60-80 weeks, late nights, weekends, countless hours away from our families to push forward with projects that were horrible for our customers and senior leadership was told to get the job done regardless any way they could. We worked through the AT&T and Verizon conversions. We performed as employees of Frontier. Who did not perform? Those making these horrible financial and planning decisions that caused major outages to former Verizon customers when they finally cut over. Some problems were so severe that many customers decided to leave.”

Frontier insiders tell us the company is on a mission to slash expenses across the board to turn in better financial results that can protect the company’s dividend payout to shareholders and, in turn, executive pay and bonuses. The company is reportedly considering allowing more employees to work from home to cut facilities costs, utilities, and maintenance expenses.

“There have been numerous resignations over this and morale is at an all-time low within the company,” a source tells us.

One of the employees sharing the latest developments reports he has turned in his resignation this month and accepted a position in middle management at the area’s cable competitor Charter Communications.

“I figure I should follow so many of our customers to a company that isn’t great, but at least makes an effort delivering what it promises.”

Frontier’s Problems Afflict Hundreds of Customers in Western N.Y.

WHEC-TV Rochester has been following problems with Frontier Communications since last summer. Until the acquisition of former Verizon customers in Texas, Florida, and California, the Rochester, N.Y. metropolitan area was considered Frontier’s largest legacy city service area. But just like in smaller rural communities, service problems have plagued Frontier, with complaints rolling in about slow or non-existent broadband, landline outages, poor billing and customer service practices, and service calls that take weeks before anyone shows up.

WHEC-TV Rochester began covering problems with Frontier on Aug. 22, 2016 with an investigation into internet woes at a Geneseo insurance agency. (2:21)

One day later (Aug. 23, 2016) complaints from other Frontier customers poured into WHEC-TV’s newsroom because of outages and bad service. (2:54)

In September, 2016 WHEC-TV was back with another story from frustrated and angry customers who can’t get suitable service from Frontier Communications, but found a $200 early termination fee on their bills when they tried to cancel. Now the Attorney General is getting involved. (3:18)

In late December, WHEC reported it had asked the N.Y. Public Service Commission to start an investigation into Frontier Communications over its broadband service. (2:20)

In February, when N.Y. Attorney General Eric Schneiderman came to town to discuss the honesty of ISP speed claims, WHEC reporter Jennifer Lewke instead questioned him about the hundreds of complaints the station had received about Frontier Communications. (3:03)

About one week after the Attorney General visited Rochester, WHEC reported Frontier Communications’ “old and outdated” equipment was directly responsible for taking a local radio station off the air for hours at a time. (1:10)

Several days after a windstorm in the Rochester area took away power to nearly half the metropolitan area, WHEC reports residents are frustrated waiting for cable and phone service to be restored. An investigation into utility infrastructure is now underway. (3:17)

Currently there are 50 comments on this Article:

  1. Genn says:

    The way Frontier handled the transition over here on the West coast in California wasn’t any better. My neighbor has phone/internet/tv through Frontier and all three went out when Frontier took over for Verizon and it was out for weeks, when she told me about it I remember saying I was glad that all I have is a landline with Frontier – of course that went out on me late last year, you’d think that in the months since they screwed up the transition out here they would have made the effort to ensure all their equipment outside is in proper working order, but apparently not. We’ve seen the ‘breakup of the bells’, Comcast swapped with Time Warner, Verizon landline and internet/tv sold to Frontier which I can guarantee nobody who has lived in California their entire life had ever heard of until they had their services accounts sold to this company, and of course Time Warner merged with Charter. NOT ONE of these changes has kept our bills from continuing to climb, or delivered on the promises that regulators were sold by these companies to get the necessary approvals.

    I feel for the employees who were depending on their bonuses, but their corporate heads should never have been allowed to acquire territories like they did, nor should Verizon have gotten away with letting their infrastructure fall apart like they did. Both companies should have to bear some monetary consequences, but with the current government regulatory climate I know that’s just not going to happen.

  2. LG says:

    Frontier is a “locust company”. They buy up antiquated, outdated and obsolete infrastructure, then run it into the ground. They invest nothing into their acquisition, cut maintenance budgets and outsource employees where they can. When the acquisition finally collapses, they blame the lower level employees and dump the company, usually leaving customers with no service and people with no jobs. Frontier should be banned from acquiring any new territories or businesses, and made wholly accountable for their misdeeds.

    • Genn says:

      Well, I suppose that’s one way for Charter (Spectrum) to get me signed up for their phone service – Frontier failing, abandoning landline customers who then have to settle for whatever they can find.

      I mean, if I didn’t want to have the ability to buzz people in at the HOA front gate I suppose I could get rid of the landline, but turns out it’s kind of important to have.

  3. jamesjimcie says:

    I truly would favor Ajit Pai’s FCC giving the euthanization death penalty punishment being weight down to Frontier Communications with the euthanization death penalty punishment meaning Frontier can no longer get to exist as a telecommunications company anymore as the unfortunate true only last resort to end Frontier’s out of control reckless outrageous behavior to by abusing and misleading all of their customers and wanting to get too big, and also the unfortunate true only last resort to allow all the communities that are served by Frontier as the ILEC wireline telephone provider to build out their very own fiber optic cable line network to serve their own communities without any interference from Frontier and other telecom providers and the states that outlaw communities building their own community based fiber optic cable line network.

    I’d would favor wanting Great Plains Communications based out of Blair, Nebraska to take over the majority of the communities currently served by Frontier in my home state of Nebraska in both the 308 and 402/531 area code areas in Nebraska including with my home town of Duncan along with Columbus, Leigh, Monroe, Platte Center, Lindsay, Newman Grove, Madison, Battle Creek, Tilden, Genoa, Albion(between Saint Edward and Petersburg being already served by Great Plains for wireline phone service), Neligh(is close to Elgin from the north served by Great Plains), Brunswick(is close to Plainview from the west served by Great Plains), and Orchard(is close to Ewing from the northwest served by Great Plains) all in all completely entirely taking over from Frontier by Great Plains in the 402/531 area code area.

  4. John says:

    I live in a town in upstate NY with Frontier as the POTS servicer, I can attest the last time the poles were replaced(that they own) was…..1973.

  5. Chad says:

    I worked for Verizon in WA State. We were purchased by Ftr in 2010. Everything actually went pretty well compared to the Cali, Tex and Fla of recent. That is until 1 year later when we went off Verizon systems *we were allowed to use for a year or so* and onto Frontier systems. I’m talking internal systems. This is when it started going down hill.

    Verizon systems worked. Frontier systems did not and still as of 12/2016 do not.

    I left the company in 12/2016 through an ISP because FTR declared a “surplus” in my work group.

    You know what my work group was? Install and repair. Yep they decided there were too many heads in the install and repair dept. I can guarantee you there was not.

    It’s been a crap show since we were acquired by them and finally the smoke and mirrors are dissipating and people are seeing the true colors.

    Too little too late Mr. CEO, CFO etc etc.

    Damage is done. Your brand image is garbage and your employees morale is the lowest I have ever seen.

    I am glad I left and my only regret is not being able to stay. The reason is my immediate co-workers and management are great. Anything above local level is a clown show.

    Shame on you for blaming employees and on shore call centers.

    The real problem is repeated stupid decisions by upper management, failure to invest anything to bring our ancient equipment up to current standards, failure to implement a maintenance program, pushing garbage nobody wants like FSecure, Tum Tiki etc etc etc.

    Damage is done. RIP Frontier.

    I hope all the employees come out ok after the storm is over.

    • I thought Maggie was bad but compared to what I am seeing under Mr. McCarthy, things are getting worse. Frontier is like the Sears of phone companies. Harebrained schemes, shoving ancillary services that are gimmicks that nobody really wants while the most important things deteriorate (or never improve).

      We live in a legacy Frontier territory that has been ignored literally for more than a decade. Frontier’s BS about investing in Rochester falls apart when you notice a lot of that money was spent on metro Ethernet – a commercial product. But Frontier uses it in their press releases to suggest residential customers are getting better service. In some cases, things are incrementally better, especially if you live in a new development. But older neighborhoods in Rochester are still getting a MAX of 3.1Mbps. How do I know? Because I live in one. It has been that way since 2008 – almost a decade of zero improvements.

      There is a reason Time Warner grabs such a huge market share in western NY. The alternative is either Frontier or Verizon DSL, which is to say no alternative at all. Literally the only people I know still buying DSL from either company either do not have a choice or they don’t know any better.

      It’s clear Frontier will spend money to acquire networks built by others but won’t spend the money to really build one themselves. That means they are headed for irrelevance in their larger legacy markets where any upgrades will have to come out of their own pocket. That clearly isn’t happening anytime soon, especially now that they’ve pulled back on IPTV.

  6. Disgruntled Employee says:

    I’m currently an employee for Frontier and the only reason I’m still here is because this is the best paying job I’ve ever had. However, it’s also the most mis-managed job I’ve ever worked for. The training here is horrible. We get emails on changes in processes and are forced to teach each other on how to do whatever change was implemented. Also, Dan McCarthy has been blaming others, while sending us emails telling us how great of a job we’re doing. It’s all rose-colored glasses when its an email from Dan. He’s delusional and a snake. Will do anything he can to get more money for him and his shareholders, but the employees that make the ship run… eh, screw um. There are employees here who have been here for 15 years or more and their pay was cut along with insurance increases 4 years ago and they want to do the same again this year. And they expect us to do the same work? Again… delusional. I’m sorry to all the customers that have had to deal with Frontier over the years. I would never personally buy this service even if it was my only option.

  7. Amy says:

    What a bunch of crap frontier got rid of a
    1000 “low level employees” then tripled work load of those
    Left and took away a small bonus of about5-8k
    Yet upper upper management still got compensated
    Upper had no business taking loans to purchase
    Anything.

  8. Former Employee says:

    I worked for Frontier at one time and was an employee of one of the companies Frontier purchased. When I worked as an employee of the original telco, we had one of the most robust networks around. Frontier came in and bastardized the company. They chopped great people who were highly talented and knew how to do the job. They should have taken lessons from us as to how to run a cutting edge phone/technology company. Instead, their egos and upper management paychecks came first. Soon after that I was caught in a round of layoffs and lost my job along with hundreds of others. Customers jumped ship too because customer service fell apart. I’ve had to call customer service a few times over the years after I left the company and can honestly say, if you get a rep from a different area, they are clueless and cannot provide adequate basic support and service. Karma is finally getting Frontier back for their poor management practices. Leadership starts at the top, and Frontier’s top doesn’t have a clue as to how to run a large scale operation. I’m glad I moved on from them as I work for a great company outside of telco, but doing what I always did in my career path of life.

  9. He's kidding right? says:

    … This company has the absolute worst systems for putting through sales and correcting billing that you could imagine…. the technicians are woefully understaffed…t it is not uncommon to miss a customer’s install or repair multiple times with no recourse for the customer for their wasted time or days… in markets where Frontier is the only choice they jack up the prices because they know you can’t do anything about it… they actually use congestion as a reason that they’re Fiber speeds are slow even though fiber is a dedicated line . to each house and should never have a problem with congestion

    McCarthy has a lot of nerve to blame all of this on sales people… many of these employees care or at least cared but at a certain point your efforts are futile with this company and nobody’s listening
    And while there’s always issues with ethics and sales for many companies…its far from the issue at hand here

    This company is bankruptcy waiting to happen

  10. Upset employee says:

    Wow it hurts to see that you blame the employees for the downfall we are the ones sitting there and having to explain and fix the customers service. Due to bad lines and service outages we are the ones hearding a earful putting our jobs first to make your customers happy so they can stay with us. Fix the poles and outside lines and this problems would not exist. We work our butts off putting in overtime not being able to see our kids and you. Blame us this is very upsetting.

    • Lee says:

      I have Frontier and my lines going back to the dslam are all underground. I doubt they would go back to hanging new lines on the electric poles, and they sure will not spend the money to put in new underground wiring.

      At the other end of my road Frontier has a T1 line they inherited from Verizon that serves a cellphone tower. Later they put in a fiber optic line for the cellphone tower. They will not hook up any residential customers to either of those systems.

  11. Newer Employee says:

    Frontier is a joke but I’m getting $20 an hour to sit on Reddit while turning off people’s internet. The training is almost non-existent and we aren’t even able to communicate with the majority of customer service because they are all vendor reps without access to Skype.

    The reason everything is so far behind is they tried moving all these jobs out to India and when employee backlash blew up in their faces because nobody could communicate clearly with the new reps they said okay we’ll bring it back. Couple of months later we’re right back in India hiring contractors. They were already in panic mode and just hired a bunch of people off the street, sat them in a chair and said have at it.

    It didn’t help that they decided to do all of this crap simultaneously with buying three entire states worth of new business.

    70% of the orders I work are charging for irrelevant fees or being written as if they need to go out to the field, and all I do all day is poke my fingers into the thousands of holes in the dam. I can’t educate everybody myself, and it seems our department is the one that everyone gets pointed to when they can’t figure out basic stuff.

    But as I said I get $20 an hour to sit on my ass all day, easiest job I’ve ever had. The expectations around here are so close to zero I can do a “days” work in an hour or two and have 6 hours left to get patted on the back.

  12. Somewhat Perplexed says:

    “Frontier CEO Blames Employees”

    I didn’t see anything supporting that, anywhere in the article. Implying that’s the case because bonuses were cut is disingenuous at best.

    • Blamed Employee says:

      Dear Somewhat Perplexed, Mr. McCarthy told the employees that we were ‘a company that is paid for performance and we did not perform Q4 of 2016’. He’s including the employees in that statement when it was he and his minions that made the horrible financial decisions that put the company in the state that it’s in.

  13. Disagree with McCarthy says:

    I was an employee of a real Telco corporation and my state was sold to Frontier. There is no training for employees. We have to teach ourselves and each other. There is no management, because there never has been a clear, concise strategy to maintain our plant much less expand our plant. Customers are only important until the contract is signed, then they are just a number, regardless whether commercial or residential. The very employees McCarthy blames, care. They care about the customers, constantly inform management about the bad plant, and want Frontier to succeed, but this falls on deaf ears, as upper management does not care about anything but impressing Wall Street and providing a stock yield for investors. All these employees with the same story across the Frontier footprint says a lot. It is the same story regardless of state. Wilderotter and McCarthy have been horrible CEO’s. They have run Frontier into the ground. It is time for the PSC/PUC of each state to step in and make Frontier make good on their promises when they made the purchases.

  14. David Bystrack says:

    What about all the problems in Ct ??? They still can’t get my bill fixed and billed me $476.00 for there mistake.They just took the money from my credit card?I would like the money back.

  15. M.vincent says:

    The things I could tell you about this company. If I ever see there ceo ill slap the piss out of him. It’s not his employees. It his companies ethics and managment. To do everything they can including putting suffering customers last and even not repairing there stuff because it save them money. I worked there I can write a book about everything bad and the 1 good thing about this company. But it may take me till my death to finish. The only good thing about this company minus a few bad apples is there frontline employees that do there best work there asses of and get treated like sh** for pulling any strings to actually help a customer. Or still treated like sh** for following company guidelines which are designed to make it impossible to help any customer. Simply because it costs frontier money.

  16. Cindy says:

    How has class action lawsuits never been filed against them? I dumped them 2 weeks ago, it’s so nice to actually have internet again! Frontier would speed test under 1 Mbps download speed. How can they get away with lying about what your getting, then deliver garbage?!

  17. Jennifer says:

    Don’t like Frontier? Share my letter I wrote last Fall to the CFO. They never responded or acknowledged. Nor did they ever send the promised $300 gift card.

    Maybe you need to stage your own “Undercover Boss” and go & see what is truly happening in your company. Put your management in the field in the trenches.

    John M. Jueller CFO/EVP
    Frontier Communications
    401 Merritt 7
    NORWALK, CT 06851-1000

    10/15/16

    Dear Mr. Jueller:

    I was in the newswire business for 12 years with PRNewswire & GlobeNewswire.
    As a new customer of Frontier in Florida let me give you an idea of what is ailing your company.
    Do you know that your installers actually are aware of your companies short comings?
    Here is our story & your installer was very aware of the thousands perhaps millions of dollars your company is leaving on the table daily.
    We LOVED Verizon in NJ! We do not care for Comcast. So we chose Frontier to get the Verizon services we know & love here in Sarasota FL.
    The 1st installer came out August 26th & put all new equipment in our rental home at XXXXX Sarasota XXX. You need to know my husband had to wave the installers down that day because they were looking for the incorrect house #. We only purchased internet at this time for $44.99 a month. Confirmation #XXXX phone you assigned us (we did not purchase phone) 941-XXXXX. Now we were up & running!
    September 30th we came home to no service. We figured because we had never received a bill that was the issue. Let me mention at this point I am in sales & need the internet to do work from home – daily. So, we call… After 2 hours on a Friday night we still have no internet service & they are not sure why. We decide to add TV channels & spoke with Renee who gave us a new confirmation code of #XXXX, no equipment fee, no installation fee & a $300 gift card for all the confusion. She will call back with an install date because your computer system will not allow her to book our appointment. She does not call back. I have to get in my car & drive to the office to work.
    I call again Saturday morning for another hour to try & get someone to come out fix your error of turning off our service. They cannot find our account or our name or our installation! Really? So I call again Sunday & speak with Mark a Supervisor in the Tampa office. He spends another 2 hours on the phone with me & figures out Frontier thinks they installed the service at the incorrect house # & we have 3 confirmation accounts not 2. He finally after much prodding get the internet powered on!!!! Yeah! He was awesome!
    You do not provide installation services on the weekend. Really? You also do not give at least a ½ day time slot. Really? So, we have to wait all day at home to get an installer out? Is this 2016? Do you compete with other companies for business?
    So, the soonest they can come out is the 21st of October. What?
    I have to call & move that date to the 28th of October because we both have new jobs & we cannot be home that day. Fine. They move the date to October 28th. I can work from home that day.
    We come home from work October 11th….. guess what? No internet service AGAIN!
    My husband calls. Another 2 hour call. They cannot find our account. I find a customer service # for Tampa. He calls there. They have no Mark there. Again, really? How is all this possible? So, now we cannot locate the excellent customer supervisor you do have?
    Well, you turned off the internet because we moved the TV installation date. SO YOU SHUT OFF MY EXISTING SERVICE BECAUSE I MOVED THE INSTALLATION DATE OF AN UPGRADE???? An upgrade means I am going to spend more money with your company monthly & you shut my service off… why?
    On October 14th you came & installed my TV & internet. Your serviceman tells us he hears these complaints & stories every day. None of our story surprised him at all. Do you know this?
    So, during this time we also incurred overage charges on our phone; to Verizon of course. It is only $15.00 (see bottom of letter). But it is my $15.00 because we had to use our phones to pay our bills & other things we would have used wi-fi for.
    The story on the street is you chose to use cheaper ineffective software to run your company versus the tried & true effective software services of Verizon. Let me tell you it is killing your business.
    Maybe you need to stage your own “Undercover Boss” and go & see what is truly happening in your company. Put your management in the field in the trenches.
    You need to realize you have multiple issues. You need to be available to install services in a window – not a “day”. You need to be customer centric. You need to provide weekend services. Your software cannot turn off a service because it chooses to.
    Do you want to increase your market share? The price of your stock? Do you make bonuses on your success?
    Don’t take my word for all this. Poll your linesmen & step into the trenches.
    Regards,

    Jennifer
    20+ years of customer service, sales & marketing + consumer

  18. Former Employee says:

    I was let go back in 2013 after working for Frontier for a little over 7 years. The only reason why I stayed for so long is because I needed to support my family, and I worked from home. Frankly, I hated the job from 2010 to 2013. I hating telling those customers “I apologize for your inconvenience. Let me give you $25.00 off your bill” and a month later the issue is still there. And then to make matters worse the company wanted us to SELL more services, even though the ones the customers currently had were SH**!
    When I first started there, it was great. Yes, we had some services that went out, but not nearly as bad as when I was let go.
    The reason I was let go? I COULDN’T MEET THEIR SALES QUOTA! Can you believe that? At least I got unemployment from them for a while, and now I’m at another telecommunications company that does care about their employees, and I’m doing the exact same thing, but without the sales piece and am quite happier. Not to mention I get paid much higher than when I was with Frontier, the cheapskates!

  19. Frontier Employee says:

    As a frontier employee in Florida, I can honestly say our problems began way before Frontier came along.

    In my opinion, it started with Verizon, and Local 824 Union reps. We all knew Verizon didn’t want copper wireline or FiOS plant anymore, but we were pulling in tons of cash for Verizon. Verizon had managed to sell off every piece of real estate that wasn’t absolutely necessary for business operations, and some that were. Our Union sat back while Verizon gutted the workforce, and closed or moved entire departments.

    Finally The Union forced a bad contract down our throat under threat of striking against Verizon (which in Florida you can be fired for). As soon as the union contract was signed, Verizon announced its plans to sell off Florida, California, and Texas to Frontier and our Local Union business manager was promoted to International… Interesting. Also, after the selloff announcement, Verizon cut budgets in the affected areas. We started getting defective equipment, and refurbished equipment. No preventive maintenance was being performed, only band-aids on old equipment.

    Thank you Verizon, and IBEW 824 For ruining our lives, and destroying our customer base. PS. I see no where in this article where Dan McCarty blames the employees for frontiers woes..Fake News!

  20. Angela Ehlers (Former Employee) says:

    Wow, talk about pointing the finger! Employees are the backbone of your business, without them, you don’t have a successful company. How about looking at the underhanded tactics of upper management? I seem to remember a certain land acquisition that took place 7 years ago in Fl that which caused a huge uproar since the land was owned by the CEO of the company at the time and was rented to Frontier to build the Deland, FL call center. The whole point of that transaction was to move Frontier away from the unionized wages here in the MN call center since the employees down there had no union and Frontier could get away with paying them lower wages–thereby “saving” them money. Another thing I should point out (since I don’t work there any more and an THANKFUL every day I don’t), is the fact that Frontier has not only an old infrastructure when it comes to the services they supply as evident by their slow DSL speeds which are little more than dial up speeds in most areas-but they are also overpriced. Techs are not trained properly to handle situations that arise in the rural areas they provide services, they invested in dead end business opportunities when they lacked the funds, so they are spending money they don’t have. They banked on the fact that they would regain the capital over a certain period but never did recover the cost due to not investing in the old lines they run their services on. They tried, I’ll give them that, in the Ogden area but realized the cost was too high to convert everything over to fiber optic. So really, who makes these kinds of decisions? The lower level employees? I think not. Instead of pointing the finger at the employees and passing the blame to others, he should be looking at everyone in his board room meetings and asking them what the hell happened. They took a multi million dollar company and ran it to the ground. Upper management deserves a huge pat on the back!

  21. Patricia L Nichols says:

    First, I would like to say that I was a 24 year employee with GTE/Verizon/Frontier until I was laid off in 12/2016. For the most part, I enjoyed my career within telecom. When we 1st learned of the 1st “merger” between GTE & Bell Atlantic, everyone was ecstatic but nervous of the unknown. It didn’t take long for the newness to wear off and jobs started to go in a building that had held over 1300 people at one time. We made it thru the Verizon years but not without bumps along the way. Then came the sale to Frontier. As with all sales, everything is pushed to the old company employees that everything will get better with the new company. Shame, Shame!!! That did not happen.

    Yes, we leased the Verizon systems for a year after the sale. The systems were stable and back end programmers knew how to fix issues and upgrade the programming as needed. Then the cut-over came to the Frontier systems. What a joke. I have done some form of data entry all of my working career. I am by no means a programmer but I know when a data entry system is so antiquated that orders are not able to be worked by an automated system that the system needs to go.

    It’s not the employees that aren’t doing the work, it is the lack of leadership. No one knows what is expected of them day to day because day to day the expectations change. No one is held accountable except for the front line “lower level” employees that are trying to keep the customers happy and keep management happy.

    The location I was in had been a stable employer in our community for over 50 years. If our old upper management could see what has happened to the company that we have all worked hard for and put our heart and soul in to, they would be quite upset.

    For some of us that were laid off, it was the best thing that could ever happen. I was lucky enough to have met the 76 rule and therefore received my pension. I was extremely worried that I wouldn’t get the money out before the company files for bankruptcy protection.

    As I had said in the meeting when they announced the layoff, if the company thinks that laying off over 300 people in our location is going to fix the financial issues they have, they are sorely mistaken. Instead of buying California, Florida and Texas from Verizon they should have taken that money and fixed their current infrastructure and computer systems and we wouldn’t be having this sort of conversation over a news article.

  22. Phil MyNuts says:

    I agree IBEW local 824 lead by business mgr is worthless. They cut deals that doesn’t benefit the employee and then raise the union dues when the company cuts techs. Guess he is trying to get to the international just like the last 2 out of 3 business mgrs did. I also don’t clearly where employees are to blame in the article.

  23. Yes this is all the employees fault. The employees acquired Verizon, the employees cause the outages and service problems, the employees decide prices, and the employees have a say in anything in the company. How about the CEO gets on the phones and tried to explain to the customers that the reason Frontier is doing terrible right now is because Frontier tried to grow to fast and they were just not prepared for the Verizon customers. Frontier cares to much about getting new customer then helping current ones, because so many people left Frontier is trying to get them back with New Customer pricing. The new customer pricing is a joke itself, the pricing does not help in the long run and does not guarantee the customer is going to stay, only gets them in. This is what’s wrong with the world nowadays, greed runs everything, everything done by the CEO and higher ups is greed. More money in getting new people then helping current ones. Yes there are bad apples in the bunch for employees, but these employees are only influenced by their managers and coaches, do not blame the employees for the faults of the higher ups

    • Frontier has NEVER been prepared for a hot cutover. The bungled the Verizon transition in states like West Virginia around 7 years ago, blew it in Connecticut to the point of having to issue refunds, and the most recent transition in Texas, Florida, and California resulted in scathing news coverage in all three states.

      When Rochester Telephone cut our exchange over to the ESS5 in the late 1980s, they spent months carefully preparing for the day they would take a hedge trimmer to the wiring connecting the old #5 Crossbar switch that powered our exchange since the 1960s. We were alerted about the transfer, scheduled late on a Friday night/Saturday morning and was up to experience it. We were without dial tone for about two minutes. No further problems at all. That was when companies treated their wireline networks and customers with absolute respect and gave urgent attention to dealing with service problems.

      These days, they get to it when they feel like it, screw up billing, and rely heavily on reusing infrastructure that has freed up by the mass exodus of landline customers. Employees can’t resolve the problems without being given the tools and resources they need, but they are the ones that have to deal with the wrath of upset customers.

      Frontier could be a remarkably better company if they remembered you have to invest money to earn money. Investing in metro Ethernet is fine for corporate customers, but isn’t going to help residential customers in the suburbs in most cases. Overloading DSLAMs for DSL customers in states like West Virginia is also a recipe for customer flight, assuming they can.

      I’m also frankly unimpressed with Frontier’s mailed ads trying to lure me back (I don’t see any TV ads around here anymore). They just cannot appeal to me when the service maxes out at 3Mbps.

      I’d reconsider if Frontier can deliver a service that recognizes it is 2017, not 1998.

      • Jill says:

        Comcast, with all their faults and crappy software applications is giving me 161 Mbps down and 12 up for $50/month with the WiFi router/modem. Glad I am not stuck with Frontier.

  24. Customer says:

    Wow…crazy…

  25. Ex GTE/Verizon/Frontier Employee says:

    Frontier LOST 20 years of my training records. So I spent hundreds of hours on line (during Frontier’s work days, out in the field somewhere) retaking phony exams, studying phony training programs. Any management support would shrug it off, as “the cost of doing business”. Kick ’em to the curb. Erase thier qualifications, destroy what little morale that was left. It was about two LONG years before taking what was left of my investements & RUNNING away. I had a time keeper who changed my timesheets every time i worked overtime, which was pretty much ongoing as nobody else was foolish enough to stay out 16 or more hrs a day. I called the union…deaf ears… human resources… deaf ears. I was SO glad to leave such a corrupt “Sales” company. The welfare company (much of their revenues come from our US Government to provide “broadband” to the rural areas. So they install DSLAMs where they over assign customer channels. Also cant feed them with adequate pipelines (fiber, T3, T1s etc. So these poor customers out in the rural areas are stuck with crummy download speeds, intermittent or NO service and lousy support.

  26. Jim says:

    wow…hard to read this comment thread but as a shareholder it is important to hear from the employees…just so we all know the complete picture I will give the other side of the story as an investor into this company…I call this expose’ “the anatomy of a short sale” and it begins in 2007…2007 the SEC voted to remove the “short sale tick test”; 2008 the zero interest rate policy is enacted by the Federal Open Market Committee; 2009 FTR announced signing of a purchase agreement with Verizon with more than 7 million access lines, 8.6 million voice and broadband connections and 16000 employees. The transaction is subject to approval by Frontier shareholders, FTR due diligence and regulatory approvals, including the FCC and 9 state public service commissions. The transaction is expected to be completed in 12 months; 2009- 2010 high yield investment newsletters and tv personalities tout dividend stocks naming FTR as a dividend play to be considered. The following is from a Cramer interview on July 13, 2009; [Cramer] Well, I’ll tell you. I’m a believer. I’m a believer. I would tell you that I think as someone who knows stocks, you know your business, that there will come a better moment when that stock−− because I don’t think the Verizon people who get the stock are going to understand the things you said. The knee jerk approach is usually to get rid of the stock. But I think that might be the opportunity given what you just said about the dividend. [Wilderotter] And we’ve been out there very actively meeting with top shareholders for Verizon.[Cramer] Excellent, okay, that’s Maggie Wilderotter. Thank you so much, she I s the Chairman President, CEO of Frontier. There will come a moment and I’m going to tell you when it is when I think the stock will be fully distributed and the pressure will be over and then −− buy, buy, buy! We’re going to buy, buy, buy. Stay with Cramer; 2010 – 2011 the trap is set; 2011 to present relentless short selling by HFT’s and negative press releases; 2016 Maggie Wilderotter retires from FTR with multi-million dollar bonus package, in mean time FTR, once a $4.4 billion market cap is now a $2.5 billion company with growing liquidity problems and a looming balloon payment in the not too distant future.

    It appears that both employees and retirees have been sacrificed by the powers that be and the games they play with peoples lives and money…it is important to remember that what goes around comes around so there are no winners here and my heart goes out to the employees and customers of this company…me on the other hand will lick my wounds as an investor and be glad that I practiced “position sizing” when I purchased this stock upon retirement in 2011.

  27. Michelle says:

    Let me make it easy. The whole problem currently in a nutshell is the management. If we had the days back of: Berney Heiler (RIP Berney), Rob McCoy and Tom White there would be no problem. Those men were the “Masters” of Telco. Therefore the split would have never happened.

  28. Ruud Vullers says:

    It’s about time they start refunding their customers for all the time they are not offering phone/internet service. It’s unheard of to still keep sending bills as if they are providing the service they promised. The amount of damage they are doing to businesses that need to rely on phone/internet service is incredible.

  29. BobInIllinois says:

    Yes, Michelle….The old GTE management look like corporate geniuses compared to Frontier’s .

  30. Lynn says:

    Here is the PROBLEM: THE CEO MAKES WAY TO MUCH MONEY! $5.4 MILLION DOLLARS A YEAR.

    Daniel J. McCarthy

    Executive Compensation

    As President and CEO at FRONTIER COMMUNICATIONS CORP, Daniel J. McCarthy made $5,447,116 in total compensation. Of this total $981,251 was received as a salary, $0 was received as a bonus, $0 was received in stock options, $4,455,065 was awarded as stock and $10,800 came from other types of compensation. This information is according to proxy statements filed for the 2016 fiscal year.

    President and CEO
    FRONTIER COMMUNICATIONS CORP
    View local and national averages for
    salaries
    $5.4
    MILLION
    $981,251
    Base Pay
    $0
    Bonus + Non-EquityIncentive Comp
    $981,251
    Total Cash Comp
    $4,455,065
    Stock Award Value
    $0
    Option Award Value
    $4,455,065
    Total Equity
    $10,800
    Total Other
    $5,447,116 Total Compensation
    Fiscal Year Ended in 2016

    • Unhappy FTR customer says:

      This ceo guy is just fighting over money. Typical ego maniac. When the chips are going down, grab up as much gold as you can muster. Even if it means throwing the actual soldiers to the wolves. Blame it on the soldiers after sending them to work without even the basic tools needed to do the job.
      I’ve worked with a few like him. On a lower scale but just as wicked & unreasonable. When ya screw up, blame everyone around you. That’ll fix it. I would yank his pensions, stocks, …. all of it. Have security escort him out the door and get somebody who actually cares about this company to save it from sinking totally.

  31. Annoyed Employee says:

    I really used to proud to work at Frontier. The environment was really nice and there was opportunity for growth. I switched to sales last year taking chats, 2 chats at once by the way…. so customers reading this please understand we have to do a lot of multi-tasking.

    Not only 2 customer chats at once but many times you have to chat other departments to fix and issue and the customer is waiting and waiting because you have to wait on the other departments to fix an order.

    The ordering and billing system looks like it is from 1990. Honestly they just continue to patch it up instead of investing in good ordering software. it is really confusing to the agent working to try to piece together information from these systems!

    I working here to pay for college and try to take a full 4 class term each semester, I have a very busy lifestyle and this job is tormenting me now a days. by the time I get home from work I am so mentally exhausted. because they force us to be little hyper productive hamsters for the company. its outrageous.

    high turnover rate because most people can’t handle the stress and me personally Im most frustrated that no matter how hard I try I STILL cant fix a lot of issues the customer experiences because its just not possible. its really discouraging. I’ve been here for 3 years and I love helping people.

    also that survey customers take, and they always say how bad Frontier is, I get where you are coming from but you are only doing harm to the agent that helped you, their pay is reduced when they get too many bad surveys!

    speaking of money, they keep raising the monthly sales goal!! so it is nearly impossible to hit the commissions we used to be able to get say 2-3 years ago. now we are getting 60% of that if lucky.

    final point: they moved all of the Chat Agents to THE FREAKING PHILLIPINES and forced all the chatters in my call center to be over the phone representatives. really nice slap in the face and kick to my morale after working so hard. also when a customer hangs up on the phone you get another call IMMEDIATELY, you don’t even get30 seconds to finish notating the account before you have to say “Thank you for calling Frontier….”

    Frontier has cut our paychecks and our morale and doesn’t really care. To take care of the customers you have to care about your employees and then the employees (with the right resources I might add) will take care of the customer and many who I work with want to go above and beyond for the customer!

    I want these executives to stop caring about their bonuses and get this company back on track!

    • Annoyed Employee says:

      forgot to mention the insane amount of statistics used to track us….

      all tracked by computers,

      schedule adherence
      close ratio for sales
      revenue per chat
      sold broadband and tv units
      availability percentage
      bathroom breaks have to be under 6 minutes a day total
      must take 30 chats per day

      we are under a MICROSCOPE.

  32. Annoyed Employee says:

    amount of account activations versus account disconnections
    SURVEY scores must be 7.5 out of 10 or else your bonus check is cut in half, literally 50% of what you should make off of your sales for that month. please have mercy when chatting and giving us agents all zero’s.

    the list of stress goes on and on

  33. Frontier is the MOST GENERIC nasty POOR and incompetent telephone service business in the whole USA. I was ‘transitioned’ but was not even alerted, told, emailed or called…..go figure! I have now learned what a bunch of undereducated pathetic and cowardly idiots they have working for them. Their English is poor and they’re skills are not even up to reasonable par with other businesses. And to see how these idiots are crunching up the keyboard and not even knowing what the hell they are doing is just the last straw. They were charging me 80 plus dollars just BECAUSE…..when I questioned them they automatically….. like in 20 seconds…. dropped it down to 50 dollars! Talk about a bunch of pathetic idiots who shouldn’t even be working for ANY company, maybe washing dishes since that seem to be what they MIGHT be able to do with much academic effort! Then the CEO (west) who goes by the name of XXXXX White, said “Oh everything went just as smooth without a hitch”……….OH REALLY? You dumb-ass idiot! You have to say something like that even if it’s just a bunch of lies…..BECAUSE YOU NEED A PAYCHECK woman……….You would have been better off is you HAD JUST KEPT YOUR STUPID MOUTH SHUT!

  34. […] CEO Dan McCarthy recently directed the company to slash bonuses and merit pay increases — but only for lower-level employees. As a result, employee morale at the company has reached an “all time low” in recent […]

  35. Front iersucks says:

    #AlmostHeaven
    Frontier in WV
    2017-06-06 18:30:20
    download: 0.483Mbps upload: 0.208Mbps ping: 218ms

  36. […] growing bigger over commen sense. And employees say morale at the company is at an “all time low” after executives slashed all bonuses and merit pay increases — but only for […]

  37. Lee says:

    Phone line dead 4 times in last 2 months. Third time tech said was cut at neighbors yard pedestal. Fourth time this Sunday I went to neighbors to check. Mowed line in half. Now I see why always went out on Sunday the day they mow the lawn. Followed the wire. The line is underground until it reaches a small stream then there is an areal line over the stream then back underground. Seems the underground section from the areal pole to the pedestal in the neighbors yard is bad. Solution was areal line over the road tied to a tree then string the wire in the roadside trees and brush like putting lights on a Christmas tree. Wind, squirrels, or raccoons knock the wire out of the trees and brush into the grass and the mower cuts it. This time tech showed up while I was home so put on long sleeve shirt and boots to drag the wire down the hillside well away from the yard and edge or road out of the way of the mower for the tech to splice the cut area. Not sure if the original fix is in the category of George Jefferson junkyard repair, or Red Green Show duct tape fixes everything repair.







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