Could union grievances scuttle Verizon – FairPoint deal?

Arbitrator to consider possible job security violations in proposed sale of northern New England landlines to FairPoint

Verizon's IBEW New England union council has charged that the agreement between Verizon and FairPoint on the proposed sale of landline operations in northern New England violates provisions of the current union contract with Verizon.

The alleged contract violations concern the proposed transfer and termination of jobs as spelled out in the Verizon - FairPoint merger agreement. The case is pending before a neutral arbitrator whose decision will be binding on both parties.

Existing job security contract language limits Verizon from transferring more than 0.7 percent of IBEW members' jobs without an agreement from members to do so. The contract also prohibits Verizon from terminating employees with net credited service dates prior to August 3, 2003 and requires that the company follow specific force adjustment procedures.

Whether the employee surplus falls within the 0.7 percent maximum or is larger, according to the union's grievances Verizon is obligated to make workforce changes in compliance with the Job Security and Force Adjustment provisions of the contract.

"The strong job security provisions in our contract were mutually agreed to by both Verizon and IBEW because they benefit both the company and employees. We believe that if the arbitrator upholds our case, then the terms of the sale will have to be modified to be in compliance," said Myles Calvey, IBEW T-6 System Council Chair. "Verizon may be allowed to sell its landlines, but we will not allow it to make an end run around our union or compromise the rights of our members."

IBEW and Verizon have scheduled eight days of hearings with the arbitrator in Boston beginning on July 12. A decision on the grievances is expected prior to final consideration of the landline sale by telecommunications regulators in the three northern New England states.

The IBEW's System Council T-6 unites over 11,000 Verizon employees throughout New England, including about 2,500 in the Northern states.

Copies of the contract language in the collective bargaining agreement referenced above are available from Rand Wilson at the above number. More information about the campaign to Stop the Sale is on www.stop-the-sale.org and www.no-deal.org.