The Communications Workers of America (CWA) Union requested the Federal Communications Commission (FCC) to deny the sale of AT&T Mobility operations in Puerto Rico and the US Virgin Islands to Liberty Latin America Ltd. ( LLA). This is due to the tight financial situation of LLA and its history of opposition to workers’ rights, including the transfer of jobs to countries with lower labor standards. The sales agreement, as currently structured, endangers jobs, harms the workforce and threatens the quality of service.
Through a written communication, the CWA also describes how the transaction could affect the deployment of the FirstNet service, a particular concern due to recent natural disasters in Puerto Rico, as another reason why more disclosure of the sale plans is needed for Assess whether the transaction will harm the public interest. FirstNet is the first interoperable broadband network in the United States specifically dedicated to first responders, agencies and personnel that supports them, and AT&T is building, operating and maintaining it.
“Puerto Rico has seen its telecommunications infrastructure destroyed by numerous natural disasters in recent years,” said Communications Workers of America president Chris Shelton. “AT&T plans to get rid of its wireless operations in both Puerto Rico and the US Virgin Islands satisfy Elliott Management and increase the price of AT&T shares without regard to public interest, company workers and health of the AT&T network The FCC should deny this transaction unless there are clear and enforceable commitments by Liberty Latin America to comply with collective bargaining agreements, protect jobs in Puerto Rico and the US Virgin Islands and invest in a Quality service for its customers, including a solid 5G network, “is reported in the statement.
Liberty Latin America, a company incorporated in Bermuda has had a negative net income since 2016 and is heavily indebted, with a higher financial debt ratio than any of its peers. The tight financial situation of LLA raises serious questions about the company’s ability to invest in network updates and achieve true 5G service for Puerto Rico and the US Virgin Islands.
In September, after buying a small stake in AT&T, the firm of Paul Singer Elliott Management announced plans to extract profits from AT&T through the elimination of jobs and the divestment of critical assets. Elliott Management’s proposals also push AT&T to spend billions on share repurchases, increase the price of its shares and enrich Singer, leaving fewer resources to build next-generation wireless and broadband fiber networks and train workers for the jobs of the future. When AT&T announced in early October that it would sell its wireless units from Puerto Rico and the US Virgin Islands to LLA, the Wall Street Journal noted that this agreement was aligned with the goals set by Elliott Management.
CWA, which represents approximately 100,000 AT&T workers, has expressed strong opposition to the controversial proposals of Elliott Management. The union has said that Elliott’s plans would put 30,000 jobs at risk, including jobs in Puerto Rico and the US Virgin Islands, destroy long-term value in AT&T and are the “ruse archetype of capitalist vultures. “. In October, CWA wrote letters to the CEO of AT&T, board of directors, the company’s 100 largest investors and the Business Roundtable, asking them to reject the harmful proposals of Elliott Management.
Related Note:
As of December 2019, CWA represented nearly 1,000 workers employed and employed by AT&T Mobility between Puerto Rico and the US Virgin Islands. The workers represented by CWA stand out as network technicians and technicians, sellers and sellers and call center representatives, among other positions.
The CWA presentation to the FCC is available at https://cwa-union.org/sites/default/files/20200121-cwa-fcc-comments-att-libertylatinamerica.pdf.
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