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Global Union Network Presses European Commission to Block Sprint MCI WorldCom Mega-Merger
Officials of Union Network International - representing nearly 15 million telecom and information sector workers - met today with the European Commission merger task force to further detail their strong opposition to the proposed mega-merger of Sprint and MCI WorldCom.
UNI and its U.S. affiliate, the Communications Workers of America, strongly oppose the merger which would harm consumers and restrict competition not only in the Internet backbone market but in the emerging new industries and technologies that are transforming voice, data and video.
During the meeting with the EC merger task force, UNI representatives stressed that the mega-merger would give the new company monopoly control over the Internet backbone, along with the power to set prices, restrict access and squeeze out many competing Internet carriers in Europe and elsewhere.
They also cited the long history of both MCI WorldCom and Sprint in denying workers' rights, stressing that approval of this merger could undermine the existing system of social dialogue between unions and employers in the telecommunications sector within the European Union.
Luis Neves, director of UNI's telecom sector, said, based on MCI's track record during the MCI WorldCom merger review and the ordered sale of its Internet holdings, it wouldn't be surprising if the merger task force expresses dissatisfaction with this mega-merger proposal.
If the merger is permitted to proceed, conditioned on the sale of the UUNET holdings, UNI is calling for the establishment of an independent, public body to monitor the sale and assure the EC that any conditions attached to the merger are being met, Neves said.
Philip Bowyer, UNI's deputy general secretary, noted that "a go ahead for the merger would put most European internet services in the hands of just two U.S. companies." He added that although the merger task force is primarily reviewing the impact on competition that would result from the mega-merger, the social aspects cannot be ignored. "MCI WorldCom and Sprint have closed facilities and fired employees who choose union representation. Sprint was found guilty of 50 labor violations by the U.S. labor board, in its efforts to block workers seeking self organization," he noted.
CWA President Morton Bahr said the merger will cause irreparable damage to workers and consumers, an unacceptable outcome for regulators in both the United States and Europe. "We will continue to make our case to the Federal Communications Commission, U.S. Department of Justice and, with our European allies, to the European Commission that this merger should be blocked," he said.
The meeting with the EC's merger task force followed an unprecedented solidarity action with unions representing workers on both sides of the Atlantic taking their message to members of the European Parliament in Brussels.
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UNI and its U.S. affiliate, the Communications Workers of America, strongly oppose the merger which would harm consumers and restrict competition not only in the Internet backbone market but in the emerging new industries and technologies that are transforming voice, data and video.
During the meeting with the EC merger task force, UNI representatives stressed that the mega-merger would give the new company monopoly control over the Internet backbone, along with the power to set prices, restrict access and squeeze out many competing Internet carriers in Europe and elsewhere.
They also cited the long history of both MCI WorldCom and Sprint in denying workers' rights, stressing that approval of this merger could undermine the existing system of social dialogue between unions and employers in the telecommunications sector within the European Union.
Luis Neves, director of UNI's telecom sector, said, based on MCI's track record during the MCI WorldCom merger review and the ordered sale of its Internet holdings, it wouldn't be surprising if the merger task force expresses dissatisfaction with this mega-merger proposal.
If the merger is permitted to proceed, conditioned on the sale of the UUNET holdings, UNI is calling for the establishment of an independent, public body to monitor the sale and assure the EC that any conditions attached to the merger are being met, Neves said.
Philip Bowyer, UNI's deputy general secretary, noted that "a go ahead for the merger would put most European internet services in the hands of just two U.S. companies." He added that although the merger task force is primarily reviewing the impact on competition that would result from the mega-merger, the social aspects cannot be ignored. "MCI WorldCom and Sprint have closed facilities and fired employees who choose union representation. Sprint was found guilty of 50 labor violations by the U.S. labor board, in its efforts to block workers seeking self organization," he noted.
CWA President Morton Bahr said the merger will cause irreparable damage to workers and consumers, an unacceptable outcome for regulators in both the United States and Europe. "We will continue to make our case to the Federal Communications Commission, U.S. Department of Justice and, with our European allies, to the European Commission that this merger should be blocked," he said.
The meeting with the EC's merger task force followed an unprecedented solidarity action with unions representing workers on both sides of the Atlantic taking their message to members of the European Parliament in Brussels.
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