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Chop-Chop: Altice Axes 81 Suddenlink Employees in Greenville, N.C.

Phillip Dampier August 9, 2016 Altice USA, Consumer News, Public Policy & Gov't, Suddenlink (see Altice USA) Comments Off on Chop-Chop: Altice Axes 81 Suddenlink Employees in Greenville, N.C.

SuddenlinkLogo1-630x140At least 81 Suddenlink employees are suddenly seeking new employment after parent company Altice USA disclosed their intention to lay the workers off as early as next month.

North Carolina’s Worker Adjustment and Retraining Notification Act requires businesses with at least 100 workers to give the state at least 60 days notice ahead of mass layoffs. Suddenlink’s call center in Greenville qualifies. Last month Suddenlink mentioned the call center would be closing, with jobs shifted into larger call centers elsewhere in the country.

Lisa Anselmo, a Suddenlink spokeswoman, claims some of the 81 workers have found jobs at other Suddenlink facilities, but would not specify how many.

Suddenlink Closing Call Centers, Adds New Paper Billing Fee

unemployedAltice’s ongoing efforts to cut expenses and boost profits at Suddenlink will cost an unspecified number of call center workers their jobs in three states and customers will soon pay a fee to receive their cable bill in the mail.

In three separate announcements, Suddenlink has begun notifying employees at three separate offices that many will be out of their jobs by this fall as the company shutters call centers and sales offices in Greenville, N.C., St. Joseph, Mo.,  and Parkersburg, W.V.

“We are migrating call center activities to some of Suddenlink’s larger call centers in the U.S. based on call volume, and where we have the greatest number of business partners,” said a company news release.

All of Suddenlink’s sales jobs will now be in Texas, and that means sales employees in the company’s Parkersburg office were given two choices: move to Texas, or take a different job in the Parkersburg office.

St. Joseph area employees were told their jobs will be relocated to larger call centers elsewhere where Altice has spent money to improve customer care.

“We have invested in advanced customer-care technology in those locations, and based on that believe this new structure will enable us to provide a superior service experience to all of our customers,” said Suddenlink spokeswoman Lisa Anselmo.

SuddenlinkLogo1-630x140This summer Suddenlink is also continuing incremental rate hikes for customers not already subject to them. Parts of North Carolina are the latest to face a new $1 billing fee, which began July 1. New customers already pay the fee, but now current customers will also face the extra charge if they want a paper statement mailed to them.

“This fee covers the handling and postage costs associated with providing a paper statement,” said spokesman Gene Regan, senior director of corporate communications.

Notification of the new fee went out in the company’s May and June billings. To avoid the fee, customers must opt-in to electronic billing by visiting the company’s paperless billing web page and logging in to their Suddenlink account.

“What we are finding is more and more people in recent months have gone to electronic billing. A lot of customers have made the change in recent months,” Regan told The Daily Reflector. “Today so many people are online, more and more people are online, and a lot of people don’t like to deal with paper mail. They like the convenience and the opportunity to use other ways to pay.”

August

August

But many customers would prefer the option of a lower cable TV bill.

In Louisiana, Lake Area residents continue to complain about Suddenlink’s business practices, especially rates, channel options, and equipment fees. City councilwoman Luvertha August told American Press she is inundated with complaints about the cost of cable television in particular.

“All of these comments are from senior citizens. They’re on fixed incomes and they have limited budgets,” August told the newspaper. “They’re concerned with what they deem are constant changes with the Suddenlink cable company.”

Seniors have been confronted with cable TV bills that have soared from $20 two decades ago to over $80 in many cases today. This month Suddenlink completed its all-digital transition in southern Louisiana, which requires customers to attach equipment to every cable-enabled television in the home, at an additional cost.

The Leichtman Research Group, which specializes in research on broadband media and entertainment, found today’s average cable-TV bill is just under $100 after fees, surcharges, and taxes are included. Seniors who have seen no significant increase in their Social Security checks for several years are hard-pressed to pay for channels they don’t want or watch.

Last year, August attempted to involve the state’s legislative delegation to coordinate a message that consumers want more options, including a-la-carte for cable television. Her effort found almost no interest from state and federal lawmakers representing Louisiana, many who receive substantial campaign contributions from telecom companies. Sen. David Vitter (R-La.) did respond, but falsely claimed cable television is a state matter and the “federal government had nothing to do with the issue.”

In fact, many members of Congress have asked the FCC to get involved in the issue and others have supported efforts to increase competition and push for mandatory a-la-carte channel choices for consumers. AT&T U-verse has a franchise in southern Louisiana and may offer some consumers a choice, but after AT&T completed its acquisition of DirecTV, many consumers report AT&T is marketing satellite television more aggressively than its own U-verse TV option.

Patrick Drahi: Protecting Jobs Now Only Delays the Need to Cut Them Later

Phillip Dampier July 19, 2016 Altice USA, Cablevision (see Altice USA), Public Policy & Gov't, Suddenlink (see Altice USA) Comments Off on Patrick Drahi: Protecting Jobs Now Only Delays the Need to Cut Them Later
Patrick Drahi's vision of unwanted employees he'd like to lay off.

Patrick Drahi’s vision of unwanted employees he’d like to lay off.

Patrick Drahi, who oversees a global telecom empire that now includes Suddenlink and Cablevision in the United States, is quietly seething over the regulators who forced him to accept commitments not to kill jobs at the companies he’s acquired. To him, an unwanted Altice employee is nothing more than a washing machine ready to be tossed out after outliving its usefulness.

Drahi points to his French wireless company SFR as a prime example of how job protection agreements are bad news for his business plans. In Drahi’s view, SFR, like many of the companies he has acquired, is overstaffed. But he cannot slash jobs for three years because of regulator conditions imposed when acquiring the company.

“We have one year left on our guarantee of employment for three years,” Drahi told investors in New York. “Today we’re in a situation where people know that the guarantee stops in one year. It’s like buying a washing machine from [home good retailer] Darty with a three-year warranty. After three years the washing machine breaks down. What should we do, [pay for it to be repaired]? They know we’re overstaffed.”

In Drahi’s view, the unnecessary employees are just a drain on company’s resources, something their competitors are fully aware of and are ready to exploit. Drahi said the protected employees also create tension in the company. Their union representatives claim the opposite, arguing Drahi’s draconian cost-cutting makes for a hostile workplace where employees often have to take pay cuts and in some cases pay for their own toilet paper, office supplies, and break room equipment out-of-pocket. As a result, as many as 1,200 employees have already voluntarily left SFR for other jobs. In many cases, those vacant positions were never filled again, helping Drahi achieve desired job cuts through other means.

Drahi’s cost cutting even extends to the top. He admitted he was able to convince the current managers of Cablevision and Suddenlink to cut their salaries while suggesting they could share in the long-term profits of the companies sometime in the future.

Digital Sub-Channels, Cost-Cutting Cause Havoc for Adjacent Market Cable-TV Carriage

wbngTime Warner Cable subscribers in Otsego County, N.Y. have been able to watch WBNG-TV, the CBS affiliate in Binghamton, since there has been a cable company called Time Warner Cable. But as of yesterday, that is no longer the case. In Baxter County, Ark.,  Suddenlink customers suddenly lost KARK (NBC) and KTHV (CBS), two stations from Little Rock, after the cable company decided it would henceforth only carry KYTV (NBC) and KOLR (CBS) instead. Part of the problem for subscribers is those two stations are located in Springfield, Missouri, a different state.

Time Warner Cable wasted no time yanking WBNG off the lineup of their Oneonta and Cooperstown cable systems. WBNG received a letter informing them of the decision on June 16. Two weeks later, the channel was replaced with WKTV from Utica, which is a secondary affiliate of CBS (WKTV has been an NBC affiliate for decades, but through the use of digital subchannels, WKTV has managed to lock down affiliations with CBS, NBC, CW, and Me-TV). Time Warner argues Otsego County is in the Utica television market, such as it is, so there is no reason to spend more to put Binghamton stations on the lineup as well.

Oneonta, N.Y. is located between Binghamton and Utica.

Oneonta, N.Y. is located between Binghamton and Utica.

karkAnother cable company with cost-cutting fever is Altice-owned Suddenlink, which stopped carrying the two Little Rock-based broadcast stations in northern Arkansas on June 7, leaving KATV (ABC) as the only central Arkansas-based news outlet on the cable provider’s Mountain Home-area system.

The decision to drop the two Little Rock channels was made at the corporate level, local employees told The Baxter Bulletin, and the Mountain Home office had no input in that decision and were not allowed to talk about it.

The mayor of Mountain Home sure is, however.

“We’ve had a lot of people calling in, coming by the office,” Mayor Joe Dillard told the newspaper. “Several have been in a couple times. I do not understand why we got two of our main channels in the state taken away.”

An authorized Suddenlink spokesperson finally admitted it was about the money.

“In recent years, local broadcast station owners have begun asking for increasingly larger amounts of money in exchange for allowing us to renew contracts to carry their stations,” said Gene Regan, senior director of corporate communications for Suddenlink. “To help keep down the costs of providing services to our customers, we have made the decision to drop out-of-market stations that duplicate network affiliations with other existing in-market stations.”

That policy has been gradually implemented in a growing number of Suddenlink-served communities, which are often exurban or rural towns located between two larger metropolitan areas. These are the areas most likely to receive multiple network affiliates from different nearby cities.

mountain homeSuddenlink has standing orders from Altice to look for savings wherever possible, but none of those savings are returned to subscribers. The loss of the stations has not reduced anyone’s cable bill and Suddenlink recently moved TBS and INSP — a Christian cable network — to a more costly Expanded Basic tier. In place of the two networks dropped from the Basic package are home shopping networks that actually make Suddenlink money – Evine Live and Jewelry TV.

“I’m disappointed,” Anna Hudson of Bull Shoals told the newspaper. “I have friends in Little Rock, in Batesville. I like to know what’s going on in Arkansas, not in Missouri. It doesn’t help when the Legislature is in session, that will not be covered by the Springfield stations.”

Told You: Altice Brings Its Special Kind of Cost-Cutting to Suddenlink and Cablevision

Phillip Dampier June 28, 2016 Altice USA, Cablevision (see Altice USA), Consumer News, Suddenlink (see Altice USA) Comments Off on Told You: Altice Brings Its Special Kind of Cost-Cutting to Suddenlink and Cablevision

cheapDespite vociferous denials to New York regulators that Altice’s unique way of cost-cutting expenses in Europe would mean the same in the United States, a Suddenlink employee in the Appalachians found herself visiting a nearby Kroger supermarket recently to pick up some “forever” postage stamps after the office’s postage meter machine stopped working.

“Nobody paid the bill, leaving us to raid petty cash to get some mail out,” the Suddenlink employee told Stop the Cap! “They got the problem resolved later that week, but this was only the most recent of several incidents that make it clear our new owner doesn’t like us spending any money.”

Suddenlink employees in West Virginia needed money to get a broken ice machine in their office fixed and got the third degree instead of a quick answer.

The Wall Street Journal reports during a March “investment committee” meeting, Altice’s bean counters pelted employees with questions about the nature of the ice machine business in the United States and whether it would be smarter to buy or lease.

“A complete waste of people’s time and energy,” said the former Suddenlink employee.

In North Carolina, call center employees are updating their resumes after watching job positions slowly get eliminated starting this past April.

“Since that time, rumors have been spreading that the call center [itself] may be closing soon,” shared another employee. “And if you’re paying attention the writing is on the wall that the rumors are true. But no one from upper management or corporate will share any information.”

SuddenlinkLogo1-630x140When Altice took over Cablevision, employees were stunned when top executives dined in the staff canteen on their first day after the deal closed. That was never the style of former CEO James Dolan and other executives who avoided hobnobbing with anyone too far from the executive suites. Dolan himself often used a helicopter to travel back and forth from the office, occasionally with bodyguards.

Charles Stewart, chief financial officer of Altice U.S., warns everyone better get used to it.

“[Cost discipline is] our whole philosophy,” Stewart said. “It triggers a discussion at a very nitty-gritty level, which is where the difference is made.”

atice-cablevisionWith a commitment to slash $900 million in expenses out of Cablevision alone during 2016, that’s a lot of discipline. Employees are echoing their French counterparts at Altice’s SFR-Numericable when they call life at Suddenlink and Cablevision “a culture of fear,” watching workers exiting each week without being replaced. Much the same happened in Europe, despite commitments not to engage in job-cutting. In both cases, Altice claims the slow but steady trickle of employee departures are “normal churn,” not layoffs.

Altice designed its “investment committee” to be an authoritarian hellhole on purpose. Those who dare to attend the weekly meetings, which extend for hours, face micro-scrutiny of every expense brought before it, with employees peppered with questions to justify their expenses. The same occurred in France, where Altice officials debated how often they should pay to vacuum the carpets and clean the restrooms.

Employees figure out soon enough it is easier not to ask (or to simply buy what you need on your own), before enduring a prolonged debate on mundane topics like using new or recycled toner cartridges.

“It creates consternation for about two months,” admitted Altice USA CEO Dexter Goei. “Then people realize, ‘Boy, I really don’t want to go to the investment committee. We just got 500 printers a year ago; we can probably extend their life one more year.’”

While Altice has a deal with regulators not to layoff “customer-facing” Cablevision employees in New York, it is already slashing one of Dolan’s pet projects: Freewheel, a Wi-Fi powered wireless phone, SMS, and data service.

Coming next: Channel Renewal Battles. Altice executives believe it’s time to declare total war on channel carriage costs, even it leads to prolonged channel blackouts.

“We have about half of our programming lineup that’s up for renewal very soon,” Goei said. “There are clearly a lot of channels that we’d like to get rid of.” But Goei also told the Wall Street Journal many of the networks he doesn’t want are part of broader programming deals that require all of a company’s channels to be carried.

So what is next? Altice has stated emphatically it wants to be either the largest or second largest cable operator in the U.S. That guarantees more acquisitions, probably beginning next year. Cox and Mediacom — both privately held — may decide not to sell, which means Altice will have to refocus on taking over Charter Communications, which itself just absorbed Time Warner Cable and Bright House Networks, or divert to making acquisitions in wireless — T-Mobile or Sprint, perhaps, or content, which likely means one or more Hollywood studios.

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