The Federal Communications Commission (FCC) has given the green light to Verizon's $20 billion acquisition of Frontier Communications.
However, this approval came with a set of labor protections that FCC Chairman Brendan Carr insisted upon, protections he claimed the Biden administration would not have pursued.
In an interview with the Daily Caller News Foundation, Carr stated that the deal necessitated Verizon to implement extensive reforms that would benefit tower climbers, trench diggers, and fiber splicers. He referred to these workers as the "unsung heroes" that the previous FCC overlooked.
"I dont envision a world in which the prior administration would have looked out for Americas tower crews and blue-collar workers in this way," Carr told the DCNF. He further criticized the previous administration for striking deals that primarily benefited progressive stakeholder groups, while neglecting the needs of blue-collar workers.
Carr, who brokered the agreement in collaboration with the National Association of Tower Erectors (NATE), made labor reforms an essential condition for regulatory approval. The chairman highlighted his extensive experience working closely with telecom crews, climbing towers alongside them to gain firsthand knowledge of the challenges they face. "Ive spent a lot of time with them," Carr said.
"Ive been on top of several 2,000-foot broadcaster towers with them, on top of water towers basically every type of pole and its real work. Its hard work. And its important that we make sure theyre being treated fairly."
The agreement, as detailed in Verizon's letter to the FCC, addresses several long-standing industry issues. It restricts Verizon's dependence on 1099 workers, establishes hotlines for reporting illegal labor practices, and abolishes the "turf vendor" model. This model, according to a NATE press release from January, often disadvantaged local firms as middlemen would distribute contracts to low-cost subcontractors, leading to decreased wages and compromised safety standards on site.
In addition, Verizon has agreed to eliminate its matrix pricing structure, a flat-rate payment system that NATE criticized for disregarding regional cost differences and the complexities of specific projects.
NATE, representing over 1,000 businesses in the telecom construction sector, praised the agreement as a "breakthrough" and expressed gratitude to Carr for his involvement. "Chairman Carr has invested a lot of time and sweat equity visiting sites and conducting tower climbs with some of Americas best contractor firms and technicians," said CEO Todd Schlekeway.
The agreement also brings financial benefits for smaller contractors. Verizon has committed to expedite audits, cap payment reviews at six months post-project completion, and cover third-party compliance software fees. This last provision alleviates a significant financial burden for firms previously required to purchase expensive reporting tools to receive payment.
In a move to secure FCC approval, Verizon agreed to immediately discontinue its company-wide diversity, equity, and inclusion (DEI) programs. The telecom giant has abandoned its workforce diversity targets, terminated bonus incentives tied to demographic quotas, and consolidated multiple employee resource groups into a single compliance-focused office.
Carr hailed this change as a "good step forward for equal opportunity, nondiscrimination and the public interest."
Following these developments, the FCC announced its approval of the Verizon-Frontier merger. Carr portrayed the included protections as part of the broader pro-worker stance of the Trump administration. "Usually when you see large transactions, they have a way of taking care of Wall Street interests and Main Street can get left to the sidelines," the chairman explained.
"But one of the things President Trump has been very clear about is that his administration is looking out for the blue-collar worker. You can certainly see that in this particular FCC decision.
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