MaineBusiness.com

PORTLAND — More than 400 union-represented employees of FairPoint Communications Inc. turned out Sunday to learn more about the company's bankruptcy proceedings, according to a union official.

The company is seeking protections in U.S. Bankruptcy Court 18 months after its $2.3 billion purchase of Verizon's landline operations in northern New England. The company has a plan to get at least $30 million worth of concessions from the unions, according to documents filed last week.

If the court OKs the plan, FairPoint would give key lenders a stake in the company in exchange for lowering its debt from $2.7 billion to $1 billion.

Peter McLaughlin, business manager for Local 2327 of the International Brotherhood of Electrical Workers, said the mood at Sunday's meeting was one of solidarity – and a shared feeling that union members shouldn't take a hit when the company's troubles aren't their fault.

"They're united in the fact that it's not their fault and any kind of concession or anything like that is beyond what they should be doing," he said.

McLaughlin said the membership understands how the bankruptcy came about: crushing debt taken on for the sale and the chaotic computer systems that workers have to deal with every day.

Technological and customer service problems followed the company's switchover to its own computer system nine months ago. The problems have led to severe public criticism and prompted inquiries by state utility regulators.

"If the systems worked and we were able to implement orders and bill correctly, the revenue stream would be a lot more clearer," McLaughlin said.

A FairPoint spokesman could not be reached Sunday. The company had said previously that it would not comment on the concessions because of an agreement with the unions.

The local and the Communications Workers of America represent 800 FairPoint workers in Maine. FairPoint has about 4,000 workers overall, about 2,700 of whom are union members.

The joint informational meeting Sunday was one of a number that have been held. It was open only to union members.

The unions have been talking with the company about ways to save money for some time, but no concrete proposals have been offered yet, McLaughlin said. He said he could not get into specifics, but that the discussions have included "just about everything from A to Z that we have in our contract" as well as "things outside the envelope."

The company has 45 days from its Oct. 26 filing to present its reorganization plan. McLaughlin said extensions are common, but it's in the company's interest to come to an agreement with all the involved parties sooner.

"You can emerge a lot quicker than if it's a fight all the way through," he said.

McLaughlin said the unions are in near-constant contact with the company and will update the membership as the process unfolds.

Staff Writer Ann S. Kim can be contacted at 791-6383 or at:

akim@pressherald.com