Final Bargaining Report: Frontier Communications

New Contract with Frontier Preserves Standard of Living, Expands Job Security and Maintains Retirement Security for All Members.

On August 3, 2014, the CWA reached a tentative agreement with Frontier Communications covering all members in CBA 142.

The following are highlights of significant changes.

Job Security:

Existing job security language is expanded to every employee on the payroll as of ratification.

The 0.7% restriction on the Company’s ability to relocate work out of the state is preserved intact.

Retirement Security:

The existing defined benefit pension plan is preserved for all current employees, including the lump sum cashout provisions.

The 401(k) for existing employees remains at the 82% match for employee contributions up to 6% of basic wages.

Employees hired after ratification will be covered by a 401(k) retirement program that provides a 100% match for employee contributions up to 6% of basic wages. New

employees will also receive an annual discretionary bonus of up to 3% of their basic wages added to their 401(k).

8.2% Compounded Wage Increased Plus Other Compensation:

Wage increases of 2.25% effective the first Sunday following ratification, 2.75% effective August 2, 2015 and 3.0% effective August 6, 2016. This amounts to an 8.2% wage increase with compounding.

$800 bonus, payable within 30 days of ratification.

On January 1, 2015 Frontier will fund $850 into a Health Reimbursement Accounts (HRA) for current employees.

New Bargaining Unit Jobs:

Frontier will hire 10 Outside Plant Technicians and 50 Sales and Service Center Consultants.

Medical Plan:

Our members at Frontier will continue to have access to one of the most comprehensive, lowest-cost health care plans in the industry.

The Union and Frontier negotiated revisions to the current health plan that require workers to make modest contributions toward the cost of health care premiums. For participants in the MCN and MEP, these payments will start at $30 per month - individual and $60 per month - family as of November 2014, and increase annually over the remaining years of the contract to $55 per month - individual and $110 per month - family in 2017.

For participants in the EPO and other plans, payments will start at $45 per month - individual and $90 per month - family, and rise to $82.50 per month - individual and $165 per month - family in 2017. Participants in these plans will have the option during open enrollment to change to the MCN or MEP plan.

These premium figures include a $100 credit for employees who complete an annual physical exam with applicable biometric measurements. Those who do not complete an exam will pay an additional $8.33 monthly.

Effective January 1, 2015, Frontier will contribute $850 to a tax-free Health Reimbursement Accounts (HRA) for current employees which can be used to offset

increased out of pocket costs under the new health plan and can be carried over from year to year at the employee’s discretion.

A service pension eligible employee who retirees before January 1, 2015 will not be required to contribute to the cost of retiree medical care.

Employees who were hired after August 3, 2008 will see an increase in their retiree medical care accrual from $430 to $480 per year of service towards the coverage of the cost of health care.

Absence:

Effective January 1, 2015, there will be changes to contract provisions covering paid absence days. Payment for incidental absence (personal illness or off-duty accidents) will be capped at 10 days.

Four chargeable incidental absence days per year will not be subject to the Frontier Attendance Plan.

Employees who use four or less incidental absence days per year will be awarded a lump sum payment as follows:

Employees with perfect attendance will receive a lump sum payment of five days pay;

Employees who use less than two days will receive four days pay;

Employees who use less than three days will receive three days pay;

Employees who use less than four days will receive two days pay;

Employees who use four days will receive one days pay.

Accidental and Sickness Disability remains unchanged.

Additional Contract Provisions:

Change all 37.5 hour employees to 40 hours with corresponding pay.

Improve funding for ACFC and TABEC.

Cap Tuition Assistance Program at $8,000 per year.

Increase Per Diem from $33.30 to $40.

Implement Business Attire program providing uniforms for front line employees with a $150 boot allowance every two years.

Increase Transfer and Reassignment dollar amounts to $8,000.

Expand bereavement time to include step-parent, step-children, foster children, step brothers, step-sisters, and domestic partner.

Add mediation language.

Update the grievance procedure language.

Implement a call-out process that will provide $175 for a technician to be on stand-by.

We started this round of bargaining with one of the best contracts in the telecommunications industry. Your bargaining team is convinced that despite the intense pressure for give backs, we negotiated a contract that remains one of the BEST in the telecommunications industry.

BE INFORMED! BE INVOLVED! IT’S YOUR FIGHT! IT’S YOUR CONTRACT!