News — Investors
WASHINGTON, DC – In comments filed today [November 26, 2012] with the Federal Communications Commission (FCC), the Communications Workers of America (CWA) said the proposed joining of T-Mobile USA and MetroPCS presents the FCC with a golden opportunity to preserve and grow jobs here in the United States, jobs that would otherwise continue to head to foreign shores.
“The FCC should impose specific conditions protecting T-Mobile USA employment,” said CWA Senior Director George Kohl. “Otherwise, we’re concerned that T-Mobile and MetroPCS’ identified post-merger ‘efficiencies,’ ‘transaction-specific savings’ and ‘network and non-network synergies’ will once again translate to U.S. job losses. The FCC should make this a ‘growth and opportunity merger’ for U.S. workers too.”
Deutsche Telekom and T-Mobile are feeling the pressure today as news of their employee mistreatment and union busting spreads. On November 18, Der Spiegel, the well-respected German news weekly, released an article detailing the workplace abuses committed by T-Mobile USA and the efforts by both ver.di and CWA to bring justice to workers. The article describes the mistreatment faced by these workers as “brutal psychological terror.”
The story has been picked up by dozens of major German news outlets. Additionally, it’s spreading internationally and is being covered in the UK by Reuters, in the US by the Chicago Tribune, in Austria by Der Standard, in Switzerland by NZZ.
The German news weekly Der Spiegel has just published a major review and analysis of the “brutal psychological terror” faced by workers at T-Mobile USA. Der Spiegel is one of Europe's largest publications with a weekly circulation of more than one million, and it is known for its attention to detail and comprehensive reporting.
Here’s how the article begins:
“The business hotel in Cargo-City South close to the airport in Frankfurt was chosen with caution: the anonymity of the conference rooms provided space for two powerful unionists to meet in private. One of them is Lothar Schröder, Vice Chairman of the Supervisory Board of Deutsche Telekom and Board member of the powerful union ver.di. The other is Larry Cohen, head of the 700,000 member strong American telecommunications union (CWA).
What the two of them concoct in the following two days might be a fairly unique campaign: The organizations are planning to mobilize workers on both sides of the Atlantic in the following weeks, engage the US Congress, Bundestag and ministries and provide the media with sensitive information.
Read the full report here.
The business press has been saturated with reports yesterday and today of a hook-up between T-Mobile and MetroPCS, the number 5 wireless phone carrier in the U.S. Today Deutsche Telekom officially announced the merger of wholly-owned subsidiary T-Mobile USA and MetroPCS. The combined company will be a publicly listed company, adopt the T-Mobile name, and continue John Legere as CEO.
Undoubtedly, the newly combined company will become a more robust player in the prepaid services business and help T-Mobile recoup some of the customers it lost due to its inability to sell the iPhone. Sprint, which has traditionally been strong in the no-contract services business, walked away from a deal with MetroPCS this year after its Board overruled its CEO. It now faces new challenges and concern from investors about its ability to vie for consumers.
The deal awaits shareholder approval and is still subject to regulatory controls – The Real T-Mobile hopes that the FCC will example local markets for concentration of spectrum – as well as other closing conditions. The merger is expected to close in the first half of 2013.
Here's Legere speaking about the merger in a video the company posted the minute the deal was announced.
You probably know by now that John Legere was named as new CEO for T-Mobile USA last week. Click here for the T-Mobile press release. Click here to watch his welcome message and read the internal announcement to employees.
The Real T-Mobile hopes Mr. Legere will stop the offshoring of jobs that has cost jobs and undermined customer loyalty. And we hope he will end the policy of concerted union avoidance that the company has practiced over the last decade and let the choice of joining a union remain exclusively with T-Mobile workers.