Features, Law and Politics, Municipal Government, National

CWA Opposes T-Mobile/Sprint Merger

September 4, 2018

By Neal Tepel

WASHINGTON, DC – The Communication Workers of America (CWA) is opposed to the merger between T-Mobile and Sprint. The union has documented the merger would result in more than 28,000 jobs being lost. This includes around 24,00 jobs  eliminated because of overlapping retail store locations. Since there would be duplicated functions at T-Mobile and Sprint’s headquarters there would also be a reduction of another 4,500 positions.

“As currently structured, the proposed T-Mobile and Sprint merger is against the public interest. The merger would result in massive job losses totaling more than 28,000, while offering no countervailing benefits for the public. Unless the companies make a binding commitment not to eliminate jobs in their proposed merger, to stop violating federal labor laws, and to fully respect workers’ rights, the FCC should not approve this merger,” said CWA President Chris Shelton.

CWA had submitted comments to the Federal Communications Commission (FCC) on August 27, 2018 expressing opposition to the proposed merger between T-Mobile and Sprint as currently structured. As the filing notes: “The Commission should not approve the merger without verifiable and enforceable commitments by the Applicants to ensure that the transaction does not cause a reduction in U.S. employment, that no employees of T-Mobile or Sprint will lose a job as a result of this transaction, that the Applicants will commit to return all overseas customer call center jobs to the U.S., that the Applicants commit to abide by all labor and employment laws, and to maintain neutrality in allowing their employees to form a union of their own choosing, free from any interference by the employer.” The CWA went on to argue that the proposed merger “raises serious competitive concerns”, saying that it would eliminate the competition that exists between T-Mobile and Sprint. T-Mobile and Sprint “have made no showing that the merged firm would have either the incentive or ability to provide hallmark 5G services outside of densely-populated areas”. In addition, CWA  says that the proposed merger raises national security concerns.

T-Mobile and Sprint were both in dire straits not too long ago, but have managed to make comebacks based on lower pricing and more attractive offers to potential customers. In particular, Sprint has positioned itself as the lowest-cost carrier among the top 4 carriers which also include Verizon and  AT&T.

At Sprint, an unlimited plan for data, talk and text for four lines starts at $50 a month. Similar plans start at $60 a month from AT&T and $75 a month from T-Mobile and Verizon, not including upfront fees.

September 4, 2018

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