FairPoint says it's putting a 'hold' on hiring of new phone employees
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By Louis Porter Vermont Press Bureau - Published: November 21, 2008
MONTPELIER – Money borrowed from now bankrupt Lehman Brothers and a hiring "hold" brought on by the tough economy will not change a January timetable for taking over Verizon's telephone lines in northern New England, according to FairPoint Comunications.
The North Carolina company took on debt – including some held by Lehman – in order to complete the $2.4 billion, three-state purchase of the telephone and internet business from Verizon. But before the investment bank decided it would file for bankruptcy, FairPoint moved that debt onto its own books, company spokeswoman Rose Cummings said.
"Our finance folks made a proactive move to get that money onto our books," she said. "We felt that was a prudent move."
Meanwhile the company has begun more stringently reviewing new hires for its northern New England business, she said. That move is not a hiring "freeze" because some new employees are still being brought on, but a hiring "hold," Cummings said.
But state regulators are still curious what effect that will have on the company's plan to take over Verizon's business in the region, and its promises to improve service and expand high speed Internet availability. They will have a chance to ask those questions in a Monday meeting with the company, Department of Public Service spokesman Steve Wark said.
"The department is always going to be cautious when looking at the state's largest telecom company," Wark said. "We do feel comfortable with the agreement we have come to."
Still, the department wants to know how the change in hiring "is going to impact service quality," among other issues, Wark said.
"We want to know their overall situation," he said.
The company pledged to hire about 680 new positions in Northern New England, and will exceed that amount, hiring about 880, Cummings said.
But given the weakening economic situation, FairPoint is being more cautious about when it hires those employees, many of whom will be needed for the "cutover" period early next year when FairPoint finalizes its takeover of the Verizon operation.
"Like every company, we are taking a very hard look at our job openings right now," she said.
"We feel very confident we are ready to proceed," she added.
During the roughly week-long period in which FairPoint switches its operation from Verizon's systems to its own, customers will likely see little effect, Cummings said. Vermonters may see their telephone bills – already imprinted with the FairPoint logo – change slightly and become simpler, she said.
Internet customers will see some changes in their service, but the company will begin telling customers about the changes they can expect before the final hand over occurs, she said.
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