Gauging the local impact of Frontier sale to Verizon

What impact Frontier Communications’ sale to Verizon might have on employment and service in Greater Rochester is unclear.

The deal, announced Thursday, is valued at $20 billion. Officials called it “a strategic fit” for Verizon, as the company seeks to expand its fiber footprint and build its customer base, particularly in its core Northeast and Mid-Atlantic markets.

Frontier CEO Nick Jeffery told staffers in an email Thursday morning that nothing would change as far as wages an benefits, for now.

Frontier employs 210 people in Monroe and surrounding counties, and numbers roughly 600 retirees, represented by the Communications Workers of America Local 1170. All told, Frontier employs 13,000 nationwide.

WXXI News obtained Jeffery's email to staff, which arrived shortly after 6 a.m. Thursday with the subject line: "Exciting Next Chapter for Frontier." In it he told them that Verizon was committed to recognizing all existing collective bargaining agreements.

“There’s some immediate relief in regards to that,” said John Pusloskie, president of CWA Local 1170. “We know we are still covered by our contract ... (which) will be in place until a successor agreement is negotiated. But that’s always a concern in an acquisition or merger.”

Verizon staffers in New York also are unionized, and represented by CWA.

Posloskie's concern is three-fold: “That our jobs are protected, how this impact our negotiations with Frontier for our current employees, and how it impacts the retirees' pensions and healthcare.”

The local labor contract expired in June and has twice been extended, most recently into mid-December. Pusloskie said there was no indication of the looming sale until news reports of the possible deal began circulating Wednesday.

“We had no idea (of the sale),” Pusloskie said. “The company didn’t indicate at all that there were any discussions going on with any potential acquisitions or such. It comes as a surprise to our negotiations.”

Jeffrey's email read in part: "Verizon is committed to honoring the collective bargaining agreements in place with respect to our union employees and otherwise to maintaining existing wage and benefit packages for at least one year following closing of the transaction. I know you will have many questions on 'what does this mean for me' and over the coming days, weeks and months we will ensure these are all addressed."

Pusloskie said there has been “very little communication with the union,” but that he anticipated further information in a call with company representatives later in the day.

Frontier in recent years has invested $4 billion in its fiber network, which it touts as one of the largest and fastest growing in the country with 2.2 million fiber customers across 25 states. But the company only emerged from bankruptcy in 2021, and its local employment numbers have been declining.

Verizon and Frontier’s boards of directors have both unanimously approved the sale. The transaction should close in about 18 months, officials said, subject to approval by Frontier shareholders, regulatory approvals and other routine closing conditions.

"Until then, it’s business as usual at Frontier," Jeffrey wrote in his email to staffers.

There was no immediate response to email messages sent to both companies, seeking comment.