Sprint Nextel, CWA agree on Embarq separation
Sprint Nextel Corp. and the Communications Workers of America reached agreement on the union’s labor dispute in the upcoming spinoff of its local landline business, to be named Embarq.
CWA represents approximately 3,800 of 20,000 employees of Sprint Nextel’s local landline business in 12 states of the company’s 18 state service area.
Union members will be eligible for annual performance-based bonuses of up to $2,000, matching the bonus offered by non-union members.
The union also had concerns over the level of debt and pension assets which would be transferred to Embarq.
“We received assurances over questions we had regarding the financial characteristics of the new company and the transfer of pension assets,” said Jimmy Gurganus, CWA telecommunications vice president. “We wanted to make sure that the new company would have the resources to invest in the future, have the ability to compete successfully and provide quality service and secure jobs.”
“We are pleased that we were able to address the CWA’s questions regarding the structure of the separation from Sprint Nextel,” said Mike Fuller, Chief Operating Officer designee of Embarq. “We look forward to continuing to partner with the CWA to offer our customers the great products and services they have come to expect,” he said.
Upon separation, Embarq will be the fifth-largest local telephone company in the U.S. with 7.4 million local access lines in 18 states. The company expects to complete the spinoff in the second quarter of 2006.
