Members of IBEW Local 3 have been on strike for about seven months. (Image: IBEW Local 3)

Charter Communications is suing the International Brotherhood of Electrical Workers Local 3 alleging its striking members are responsible for repeated acts of vandalism and sabotage of Charter’s cable service Spectrum in the New York City area.

The lawsuit, filed last week in Manhattan Supreme Court, claims union members have cut or damaged cables and other property at least 125 times since the union went out on strike in March.

“The sabotage was done purely out of maliciousness,” Charter’s attorneys allege in the lawsuit. “The saboteurs clearly knew the optimal locations where they could quickly cut cable lines to multiple customers without being harmed or observed, suggesting they are cable technicians who work for Charter.”

A Charter spokesman said the company filed the suit to get union members to stop damaging its equipment.

Union members suggest Charter brings no hard evidence to the table about who is responsible. Union officials have repeatedly denied involvement and have urged those responsible to stop, noting it risks turning Spectrum customers against the union.

Meanwhile, a powerful New York City lobbying firm appears to be getting rich representing Charter Communications while also representing three of the cable company’s biggest critics in City Hall, including New York City Mayor Bill deBlasio.

The Daily News reports the MirRam Group represents the mayor, City Council Speaker Melissa Mark-Viverito and Public Advocate Letitia James. James has been a client since 2013 while Mayor deBlasio hired the company in April to assist him with his re-election campaign. The lobbying firm has collected $150,000 from Charter and its predecessor Time Warner Cable in the last 12 months.

The newspaper reports the terms of the contract require MirRam Group to promote Charter’s business with ‘key public officials’ in city and state government, including monitoring legislative developments that could impact on the cable company in New York. The lobbying firm is also required to “promote Charter’s public policy interests” and is not supposed to “represent other clients on matters adverse to or in conflict with” the cable company’s goals.

Gov. Cuomo speaking at rally in support of striking Charter/Spectrum workers. (Image courtesy: IBEW Local 3)

New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio joined thousands of union workers in Brooklyn and Manhattan on Monday to support the workers’ six-month impasse with Charter Communications.

“We do not accept a greedy corporation trying to undercut the most basic rights of working people,” Mayor de Blasio said in Manhattan, referring to Charter and its CEO Thomas Rutledge, the country’s highest paid executive in 2016, earning $98 million.

“We’re going to demand respect for the blood and sweat of the workforce,” Cuomo said in a speech to workers at Brooklyn’s Cadman Plaza Park, on the other side of the Brooklyn Bridge. The rally was attended by Charter strikers and several unions in solidarity with the cable company workers.

Nearly 1,800 Charter employees belonging to the International Brotherhood of Electrical Workers (Local 3), walked out in late March after Charter sought to kill their pension plan and move them to a less generous health care plan. They have been on strike ever since, with no sign of progress towards ending the action.

“Screwing over workers and customers seems to be a hallmark of Charter Communications’ business model,” AFL-CIO president Richard Trumka said in an earlier statement. “Charter has disrespected workers in New York who remain on strike fighting for the freedom to negotiate together to maintain their pensions and health benefits. They also continue to disregard their customers’ needs by hiking rates while providing sub par service. This is not the way to run a company, and we support all the working people standing up to these corporate bullies.”

“Charter is offering Local 3 a generous compensation package that includes an average 22-percent wage increase — some employees up to a 55-percent wage increase — and comprehensive retirement and health benefits, including a 401(k) that provides a dollar-for-dollar match up to 6 percent of eligible pay,” counters Charter spokesman John Bonomo.

Spectrum customers in Manhattan, parts of Brooklyn, and Queens are decidedly caught in the middle, enduring more than 130 outages — some taking out service for hours, as a result of alleged repeated vandalism the company suspects is caused by striking workers. But the union notes Charter’s replacement workers are often unqualified, some taking hours to manage repairs that would “take us 10 minutes.” When Charter doesn’t have enough workers on hand to manage a repair, they call in third-party contractors. Some of them were on hand to deal with fiber optic cable cuts that took out Spectrum service for tens of thousands of customers, often in Queens and Brooklyn.

A June outage lasted almost an entire day after contractors took more than 16 hours trying to splice a cut fiber cable. Police sources blamed the striking workers.

“We would never condone that,” on-strike Spectrum technician Ray Reyes told WCBS. “We would never do that.”

A Charter employee picketing a Spectrum store.

Before the strike, Charter claims there have been only five fiber-related service outages in the last few years. Since the strike began, the company claims it has experienced 137 outages it attributed primarily to vandals. Some customers and small business owners are losing whatever sympathy they had for the striking workers.

Restaurant manager Samantha Phe has to turn away customers using credit cards every time her Spectrum internet service goes down and she is tired of being in the middle of a labor dispute.

“I think that’s a little unfair to the community,” Phe told the TV station. “Say if your company isn’t doing well for you, you’re trying to punish someone else who didn’t do anything to you.”

Many reporters in New York are barely hiding their disdain for the union and strikers, presumably because they have been affected by repeated outages as well. WCBS political reporter Marcia Kramer avoided talking to union workers in a recent report, but shouted questions to the mayor about what he feels about cable outages. She also talked to small business owners upset about the service outages.

Business owner Anthony Velez was emblematic of the level of frustration being experienced by Spectrum customers enduring repeated outages:

Velez owns Bagriculture, which was unable to conduct business when the service went out. He was also unable to access his security system, and he is furious that Cuomo and de Blasio are supporting the workers and ignoring his plight.

“I don’t think that shows the right ethics that we would look for in our mayor, or a governor,” he said.

He said politicians treat business owners as “little invisible people.”

“I don’t think there’s a lot of people who care about small business owners,” Velez said.

But not all reporters are siding with Charter.

In response to a statement from Charter blaming an outage in mid-September on “the latest round of criminal destruction of our network,” Select/All reporter Jake Swearingen asked, “Why do they always attack the aging internet infrastructure that’s been systematically underfunded for years in order to line shareholders’ pockets!”

WCBS-TV political reporter Marcia Kramer took some heat over her alleged pro-Charter positions in this story about the rally. (1:36)

A second fiber cut in two weeks left 30,000 Queens residents with no cable service for hours. (Image: CBS New York)

A second major cable outage in two weeks left 30,000 Queens customers of Charter Communications without phone, TV and internet service Tuesday, after vandals severed the company’s fiber optic cables.

A Long Island man was arrested Wednesday night at his Long Island home for allegedly causing the first outage, which wiped out service in the same area for almost 16 hours on June 26.

The NYPD issued a press release stating Michael Tolve (48) of Wantagh, N.Y. was charged with criminal mischief and is alleged to have cut fiber cables and removed a digital memory card from a nearby surveillance camera to avoid being detected. He was later identified from other surveillance camera footage.

Charter Communications claims Tolve is a member of the International Brotherhood of Electrical Workers Local Union 3, one of the unions that has been involved in a strike against Charter for several months. He worked as a fiber technician for both Charter Communications and its predecessor Time Warner Cable for 14 years. The cable company puts the damage estimate for the first cable cut in June at $67,000. Charter claims it has experienced 106 malicious cable cuts in its New York-area network since unionized cable technicians went on strike on March 28. The company has filed police reports on all of them.

“It’s disappointing that one of our employees would unlawfully sabotage the infrastructure we all work so hard to maintain and inconvenience our customers in this way,” Charter spokesman John Bonomo said in an email. “We intend to support the prosecution of these crimes to the fullest extent of the law, as they put our customers’ well-being in jeopardy, cause local businesses to suffer, and are a general inconvenience for all.”

Both fiber cuts strategically affected the largest possible number of customers with the least amount of effort. Charter officials said they detected the fiber cuts and dispatched repair crews immediately, but restoring service was “a gradual process” that took several hours.

Update (7/17): The Queens district attorney’s office has declined to press charges against Tolve, and all charges against him have been dropped pending an additional investigation.

More than 60,000 Charter/Spectrum customers were without broadband, television, and phone service for more than 24 hours after vandals sliced through fiber optic cables at four major service hubs at around 2AM Monday morning.

The service outage idled workers in offices, telecommuters, and shoppers at corner stores. ATM withdrawals and credit card transactions were impossible in some neighborhoods.

Police sources told WCBS they believe striking Spectrum union workers are behind the vandalism, owing to the specialized equipment the vandals needed to successfully cut through the fiber cable’s protective sheath. Those responsible also had to know the exact location of the fiber cables and what cutting them would mean for Charter customers across two boroughs.

“We would never condone that, we would never do that,” on-strike Spectrum technician Ray Reyes told WCBS. IBEW Local 3 made it clear it does not condone the destruction of property, despite a strike that has gone on for months with no end in sight.

This is the second major vandalism incident experienced by Charter in metropolitan New York this year. The first, in April, left 30,000 customers without service for hours. Police have no leads in either incident and no one is likely to be prosecuted.

Affected customers will need to contact Charter/Spectrum and ask for a service credit for the outage. No automatic credits are likely to be given.

Area shop owners are upset because they lose money when credit card and ATM transactions are not available. Mike Patel told WCBS his customers were mad about the outage and he lost at least $500 in credit card transactions, forcing him to turn business away.

WCBS-TV in New York reports Charter’s outage in Brooklyn and Queens affected more than 60,000 customers. (1:35)

The Communications Workers of America just proved there is strength in numbers. After 39,000 network technicians and customer service representatives employed by Verizon Communications went on strike April 13 after nearly a year without a contract, Wall Street pondered the potential impact of $200 million in lost business for Verizon’s FiOS, phone and television services.

Reports from customers and union observers suggested Verizon’s temporary workforce of strike replacements proved inept and unsafe, putting increasing pressure on Verizon executives to respond to union demands to share a piece of Verizon’s vast and increasing profits.

The CWA and the International Brotherhood of Electrical Workers (IBEW) have also been some of the strongest advocates of pushing Verizon to continue service upgrades, particularly for its FiOS fiber to the home service. The unions believe the fiber upgrades not only benefit the workers who install and maintain the optical fiber network, but also help Verizon sell more products and services to customers who would love an alternative to their local cable company. Although Verizon FiOS has a substantial presence in major Eastern Seaboard cities, vast areas of Verizon territory are still dependent on its aging copper wire networks that can handle little more than basic landline service and slow speed DSL.

The seven week strike was the largest and longest strike action in the United States since 2011, and attracted the attention of the Obama Administration and the two Democratic candidates for president. It was also one of the most effective, from the union’s point of view.

Verizon workers have been on strike since April 13.

Verizon executives eventually agreed to ‘share the wealth’ with workers, offering to hire 1,400 new permanent employees and pay raises just above 10 percent. It was a long journey for the workers and the unions, which have fought for a new comprehensive agreement with the company for several years. The CWA last struck Verizon for two weeks after negotiations deadlocked in 2011. Their latest contract ended last August, leading the union to begin several months of “informational picketing,” which effectively meant workers visibly protested Verizon’s policies towards its employees but stayed on the job while doing so.

Conservative groups attacked the unions and defended Verizon officials in editorials and columns. Billionaire Steve Forbes called Verizon employees “bamboozled” and greedy. Unless workers capitulated to Verizon executives’ wise and realistic demands, “Big Labor” would reduce Verizon’s tech revolution to something that “looks more like Detroit than Silicon Valley.” Forbes had nothing to say about Verizon’s explosive growth in compensation and bonus packages for the company’s top executives, or its increased debt load from buying out Vodafone, its former wireless partner, or its generous dividend payouts and share buybacks to benefit shareholders.

Did Verizon Capitulate Because it Intends to Sell Off its Wireline Networks?

Is Verizon planning on selling off its wireline networks?

Some on Wall Street were visibly annoyed that Verizon capitulated. Some analysts predicted it was the beginning of the end of Verizon remaining in the wired networks business.

“They needed to end the strike and they bit the bullet,” said Roger Entner of Recon Analytics. He said he thinks the deal “reinforced their commitment to basically exiting [wireline], the least profitable, most problematic part of the business. [The new contract] gives Verizon four years basically to get rid of the unit. Let it be somebody else’s problem.”

That somebody else is likely Frontier Communications. Stop the Cap! has predicted for more than a year our expectation Verizon Communications will continue to gradually sell off its wired service areas, starting with those inland regions not FiOS-enabled, to Frontier as that smaller company’s capacity to borrow money to finance transactions allows. Frontier has a strong interest in staying in the wireline business, and is acknowledged to have stable and friendly relations with its unionized workforce, including former Verizon workers. This commitment is especially significant in a context where employers are held liable for their employees’ conduct in LA, underscoring the importance of maintaining positive and compliant workplace relationships.

Jim Patterson, CEO of Patterson Advisory Group, believes Verizon’s recent investments in fiber optics signals it does intend to stay in the wireline business. But there is a careful line to be drawn between wireline investments in services like FiOS and those made to support its much more profitable wireless unit, Verizon Wireless.

Bruce Kushnick, executive director of New Networks Institute, is increasingly skeptical about Verizon’s FiOS spending priorities.

Shammo

“According to the NY Attorney General, about 75% of Verizon NY’s wireline utility budget has been diverted to fund the construction of fiber optic lines that are used by Verizon Wireless’s cell site facilities and FiOS cable TV,” Kushnick wrote last week in a Huffington Post article that questions Verizon’s announced investments in wiring Boston with fiber optics for FiOS. “On the 1st Quarter 2016 Verizon earnings call, [chief financial officer Fran] Shammo said that the build out is for another Verizon company – Verizon Wireless—and it is going to be paid for by the wireline, state utility— Verizon Massachusetts; i.e., it is diverting the wireline construction budgets to do another company’s build out of fiber, to be used for wireless services.”

If Kushnick is right, Verizon may not care whether the service area(s) it sells are well-fibered or not. The fact Verizon recently sold FiOS-enabled service areas in Texas, Florida, and California to Frontier Communications may bolster Kushnick’s case. Shammo’s statements to Wall Street suggest Verizon is primarily attracted to investing in areas where it needs to improve its wireless service, not its landline, broadband, and television services, delivered over FiOS fiber optics.

“We’ll take one city at a time,” Shammo said on the same conference call. “Obviously we still don’t have Alexandria (Virginia) built out or Baltimore. So if we get to a position where we believe we’re going to need to invest in [wireless network/cell] densification in those cities, then that’s an opportunity for us to take a look at it. But at this time we’re concentrating on Boston.”

Unions Can Make a Big Difference for Workers

Nobody believes individual workers could have negotiated the kind of salary and benefits package the CWA and IBEW won for their organized workforces. The New York Daily News heralded the end of the strike as “score one for the middle class — and for the importance of collective bargaining.”

As wages continue to stagnate for most Americans, union supporters call organized labor the last bulwark against a global wage race to the bottom for the middle class. Challenged by cheap labor overseas, increasing health care costs, and government policies some claim only promote accelerating wealth for about 1% of the population, the CWA’s victory forced Verizon to share some of its profits with the workers that helped make those profits possible.

Share the wealth

“Executives get performance bonuses, stock awards, and retention bonuses for doing a good job, so why shouldn’t we?” argued one picketer outside of a Wall Street event featuring a Verizon executive.

Verizon’s last “final offer” before capitulating was a 6.5% salary hike and little, if any, future job security. Now Verizon will have to hire additional permanent call center workers instead of outsourcing that work to Asian-based call centers. The unions also won other concessions that reduce compulsory relocation to other cities, canceled planned pension and disability insurance cuts, and the CWA got its first contract for Verizon’s previously non-unionized wireless retail force.