CWA Files Objections to $45 Mil Compensation For 2 Top Adelphia Execs
WITH WORKERS FACING CUTS IN WAGES & HEALTH CARE, PAY FOR TOP EXECS SHOULD BE LIMITED
CWA has filed objections with the federal court overseeing the bankruptcy filing of Adelphia Communications Corp. over the company's proposal to provide compensation of $45 million to two top executives while it seeks to freeze wages and cut health care benefits for frontline workers.
CWA, which represents about 500 Adelphia cable workers, reminded the court that the company is unwilling to bargain for fair contracts for frontline workers but is anxious to provide a windfall for the top two executive officers. Adelphia is "not even willing to pay the industry standard of a 3.5 percent wage increase to hourly employees," CWA said.
Adelphia "should be striving to preserve employee morale and to depart from the corporate excesses of its past rather than seeking to enrich new executives with inordinate sums," CWA said. These multi-million dollar agreements "appear far more generous than the industry standard" and have not been shown to be necessary to preserve the value of the estate, CWA said.
Adelphia's failure to consult with frontline employees who are essential to the reorganization effort in proposing this executive pay plan demonstrates a failure to exercise sound business judgment, CWA added.
In a separate filing, CWA urged the Vermont Public Service Board to reject Adelphia's bid to delay the upgrading of services and equipment for cable and broadband customers.
In a letter, CWA called on board members to consider Adelphia's past record in the state, as well as it financial status, and require the company to keep its commitments to Vermont residents.
Despite filing for bankruptcy protection, Adelphia has the financial resources to fund the required line extensions and upgrades in Vermont, the union pointed out. "Adelphia's customers in Vermont should not pay the price of Adelphia's mismanagement and misspending."
"We are very concerned that if Adelphia is allowed to continue on its present course, the company will deteriorate as a provider of communications services," CWA said.
CWA represents Adelphia workers in Vermont and eight other states.
