FairPoint announces plan to lay off 260, unions say 70 jobs will be lost in Maine

Fri, 05/15/2015 - 4:30pm

    CHARLOTTE, N.C. — FairPoint Communications announced Friday that workforce restructuring plans will result in the loss of approximately 260 jobs across the 17 states in which it operates.

    The restructuring also includes closing a call center in South Burlington, Vt., according to FairPoint in a news release.

    FairPoint spokeswoman Angelynne Amores said the company could not say where the job losses would occur by state, adding that the unions have a process to determine who to cut.

    "That process could take a few weeks to sort out," said Amores.

    Members of both the International Brotherhood of Electrical Workers and the Communications Workers of America in Maine, New Hampshire and Vermont will be affected, according to union representatives in a press release Friday. The unions also said that 219 of the total job layoffs would come from the New England states.

    IBEW Local 2327 Business Manager Pete McLaughlin said by their estimates, 70 jobs will be affected in Maine.

    "This is the one time I will agree with Angelynne. While we are going through the process, we expect the number in Maine to be close to the 70, maybe less, but not more," said McLaughlin. "There is a lot of work that contractors do, and as we look at this that will be work that can be done by members first and that's what we need to work through, maintaining member jobs."

    McLaughlin said that they will also offer incentives to other workers who might be willing to leave, to keep younger members in.

    "We have a contractual process, but inevitably if it doesn't fit and we have to massage it, we will," said McLaughlin. "Ultimately, nothing is cast in stone."

    McLaughlin said that during the four-month strike, there were rumors that the company was going to downsize, but not to the extent it announced today.

    "When we were in negotiations during the strike, we received notifications of some job titles that were being looked at to be reduced, but that's all we knew," said McLaughlin. "And this is way beyond what we thought."

    McLaughlin said that the cuts will further erode already severely compromised service quality for the region's telecommunications customers.

    "FairPoint has failed to meet service quality benchmarks for years, and cutting its skilled workforce by more than 10 percent will only make matters worse. We are disgusted by this company's total disregard for its employees and customers," said McLaughlin.

    Congresswoman Chellie Pingree (D-Maine) issued a statement Friday, echoing the unions' concerns about meeting service agreements with fewer employees.

    "FairPoint has had a poor record of customer service and has not lived up to their obligations to adequately support the landline network in Northern New England. Laying off hundreds of highly skilled, experienced workers isn't likely to fix those problems," said Pingree.

    McLaughlin also chided FairPoint for "being up at the State House" supporting bills in the Maine Legislature that would eliminate its obligation to "provide service to customers who rely solely on a landline."

    "Essentially, if they decide an area is too rural, they will just be able to abandon those customers," said McLaughlin. "FairPoint also supports an amendment that would eliminate the Maine Public Utilities Commission's ability to investigate service quality failures or to enforce standards, both of which they previously agreed to."

    In a press release following the FairPoint layoff announcement, union leaders said they are asuring members that they would meet with the company immediately to ensure that the layoff process is implemented according to the collective bargaining agreements.

    "We will continue to fight these cuts and support our members and their families through this difficult time," said Glenn Brackett, business manager of IBEW Local 2320 in New Hampshire.

    "Our hearts go out to the hard-working men and women who will lose their jobs because of FairPoint's mismanagement and greed," said Mike Spillane, business manager of IBEW Local 2326 in Vermont. "Many of these folks have devoted years to a career with the phone company and they are proud of it. They are valued members of our communities who were willing to make incredible sacrifices during our historic strike. They fought not just for their own jobs, but for the quality service that our customers deserve. They don't deserve this."

    On May 6 FairPoint reported a net loss of $45.2 million for the first quarter of 2015, and as of March 31, 2015, FairPoint had 2,994 employees, a reported decrease of 172 employees versus a year ago.

    Two of FairPoint's collective bargaining agreements that cover approximately 1,700 employees in its northern New England operations expired Aug. 2, 1014. Two months later, on Oct. 17, the two labor unions initiated a work stoppage that lasted through Feb. 22, 2015, when the unions ratified their respective agreements. Union laborers returned to work three days later, on Feb. 25.

    According to the Earnings Report: "Despite the operational challenges of the strike, the Company experienced revenue growth in business services including advanced data services such as Ethernet, high-capacity data transport and other IP-based services. In the first quarter of 2015, products like FairPoint's retail and wholesale Ethernet service offerings continued to attract new customers and additional cellular towers were connected with fiber. "

    "Our incumbent workforce is back in place and our trouble loads have been reduced to some of the lowest levels since 2008 as we continue to implement improvements in our operations," said FairPoint Chief Executive Officer Paul H. Sunu in the report. "Our sales teams are successfully filling the pipeline with new residential and business orders and we continue to invest in and leverage northern New England's most robust fiber network. While the impact of the strike and harsh winter weather are evident in our results for the quarter, we remain focused on improving service, managing costs and delivering on our commitment to drive unlevered free cash flow."


    Reach Editorial Director Holly S. Edwards at hollyedwards@penbaypilot.com and 706-6655