Frontier has reached another labor agreement with the Communications Workers of America District 6 (CWA), covering workers in Texas and Missouri, clearing another key issue as it proceeds with its acquisition of Verizon's (NYSE: VZ) wireline assets in Texas, California and Florida.
CWA, which represents 2,000 workers in Texas and Missouri, has expressed support for Frontier's proposed acquisition and said it believes that it is in the "public interest and the interest of its members."
Both Frontier and the workers in each state gain benefits from this agreement. The agreement provides the workforce in each state assurances about the acquisition and how it will affect them. Frontier will be able to get operational benefits that will allow it to implement its local engagement model in the Texas markets.
Similar to the recent contract it garnered with the CWA in California earlier this week, Frontier said it would honor and extend the existing collective bargaining agreements for two years.
Some of the highlights of the agreement include job security protection, wage increases in each year and the addition of 60 new union-represented jobs in Texas and Missouri. In addition, all union employees will get 100 shares of Frontier restricted stock upon the closing of the transaction to demonstrate Frontier's commitment to its newest employees and their ownership in the company's success.
Under the terms of the labor agreement, Frontier and the CWA will form a Partnership Forum that they say will promote innovation of Frontier's products and services and the service experience its customers receive.
The agreement between Frontier and CWA is contingent upon the approval of the proposed transaction by the FCC, applicable state approvals, and the consummation of the proposed transaction.
- see the release
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