Fairpoint to Lay Off 400 Workers
Four Years After Promising Verizon Deal Job Creation
To get their $2.7 billion acquisition of Verizon's New England networks approved by regulators, in 2007 Fairpoint promised they'd create 675 jobs
, but immediately following the deal Fairpoint collapsed into bankruptcy amidst a wave of significant service disruption. While the company has righted the ship somewhat and has been meeting broadband build out conditions
, Fairpoint remains financially strained by the heavy debt-burden of the deal -- and the constant erosion of traditional landline customers. Roughly four years after making job creation promises, Fairpoint has announced
that the company will be slashing their job force by around 400 workers to save $34 million. "We are making this decision after careful evaluation to ensure that FairPoint is staffed appropriately to serve our customers well, while prudently managing expenses," says company CEO Paul Sunu.
Re: math isn't too far off
said by charlieweiss :?Really? Average technician pay is 80,000 a year before overtime? Really? That comes out to over $38 an hour. Fairpoint techs make $38 an hour, base wage? I'm working for the wrong telco!
thats before benefits, average technician is making around $75k to $80K before overtime...
| |N3OGHYo Soy Col. "Bat" GuanoPremium
Re: Executive Those guys at Citibank and Bank of America are doing an upstanding job, too!
All hail the job creators.
Oh, right. Never mind......
Gotta go, I've got a call coming in from Arthur Anderson via my Worldcom secure CEO link. I'm important, and you're not.
Now, go. Go back Proletariat fly to your un important little job, I have millions to make and deals to broker while you try and figure out how to heat your house this winter, or make your next car payment....
....Click Yes, Mr. Gore? Absolutely, I have no problem helping keeping your mansions cool in the summer and warm in the winter. Carbon footprint? That's for the schlubs who listen to so called "leaders". Do as I say, and not as I do.
Um, Mr. Gore, have you seen the Bush Ranch in Texas? Absolutely, Mr. Vice President, I agree, that solar thing is a bunch of bullshit, and that rain water collection WILL leave spots on our suv. YES, I understand that the Geothermal thing and passive solar will leave Tipper cold in the winter, but... but.. but...
Whole system's full of shit. Government by the people & for the people?
We're all puppets. Whole thing is a crock.
Petty people are disproportionally corrupted by petty power
| $34M is the cost saved by eliminating those employees. What the average employee earns isn't as simple as $34M/400. We have to remove these expenses from the $34M before dividing by 400:|
1. Average health plan costs for family coverage is $14K, for individual coverage $6K. On average companies pay 70% of family and 80% of individual.
2. Employer-paid wage taxes
- social security (6.2%)
- medicare/medicaid (1.45%)
- federal unemployment taxes (FUTA)
- state unemployment taxes (SUTA)
3. Employee materials & equipment (paper, pens, staples, copiers, printers computers, network, phones etc.)
4. Employee office space (cubes, chairs, desks)
400 people need a lot of space. Eliminating that many people may allow them to sell a building or terminate a lease.
Considering these costs, the average employee might be paid $50K to $60K, which is still a wage with some discretionary spending power but I wouldn't classify that as a "nice wage". $60K/1920 (workable hours in a year after 2 weeks vacation and 10 paid holidays) is a bit more than $30/hour. That's certainly better than burger joints and Wal-Mart but it's tough to support a family on this wage unless both adults work. As a result, a lot of families are going to be stressed and with 9% unemployment, it'll be hard to replace that $60K job. Since some of these folks are probably former Verizon "lifers", it's quite a bummer for them.
Valley Stream, NY
Re: This is why the AT&T merger should be approved. And annoy existing customers