Fairpoint Unions: We Can Go on Strike

While hundreds of thousands of people in New Hampshire and Massachusetts are watching what is going on in the Market Basket family feud, the same problems could be coming soon to one of New Hampshire’s main telecommunications services companies.

Union contracts at Fairpoint Communications expired during the weekend and both sides appear to be digging in for a protracted fight that could ultimately lead to workers striking and the company bringing in replacement workers to keep services working for customers.

The company, which has more than 3,100 employees, controls landline phone services, and offers DSL and others services to northern New England. In its most recent financial statements posted this week, the company reported a quarterly loss of nearly $23 million for the second quarter of 2014 (about $55 million in losses year-to-date), while noting that it was increasing capital expenditures but also keeping cash on hand.

“We see positive signs in the business including continued growth in Ethernet revenue and broadband subscribers and we expect rate increases implemented in the second quarter and the return of seasonal customers to help support second half revenue,” CEO Paul Sunu said in a statement. “In addition, we believe a continued focus on expenses should help drive Adjusted EBITDA and a strong back half of the year.”

Part of the eye on expenses comes with employees, many of whom are working without contracts that expired on July 31.

Union leaders, in a statement, said that had been negotiating since April and things had been “tense from the start” but during the last couple of weeks, “the company has resorted to increasingly aggressive tactics meant to intimidate workers.” The union officials allege that the company has posted “no trespassing” signs and spray-painted “strike lines in the pavement” at corporate locations. Strike-breakers, they allege, have also been housed at the same hotel both sides were using for negotiations.

“They are trying to bully us into submitting to their demands,” said Glenn Brackett, the business manager of IBEW Local 2320 in Manchester. “But we will not be bullied, and we’ll continue fighting for our families and our communities as long as we have to.”

Union officials added that the have put “several proposals” on the table that would save the company about $180 million, but the company has rejected all of them.

According to Angelynne Amores Beaudry, the company’s corporate communications director, the unions representing about 1,700 employees in northern New England have rejected company proposals due to “core issues” surrounding “pensions, retiree medical for active employees or subcontracting, issues which are key to reaching new contracts.” She added that the unions had “dug in on almost all of their current benefits under contracts from a bygone era,” keeping the company from staying competitive.

In its financial statement, the company noted that it had “contingency plans in place” in case workers went out on strike. Beaudry also stated that regardless what happens, the company will be focused on meeting “the product and service needs of our customers.”

Neither side responded to emails requesting specific information about proposals being put on the table.