Delaware | 001-32408 | 13-3725229 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
521 East Morehead Street, Suite 500, Charlotte, North Carolina | 28202 | |||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits |
Exhibit Number | Description | |
99.1 | Press Release dated February 22, 2015 |
FAIRPOINT COMMUNICATIONS, INC. | ||||
By: | /s/ Shirley J. Linn | |||
Name: | Shirley J. Linn | |||
Title: | Executive Vice President and General Counsel |
Exhibit Number | Description | |
99.1 | Press Release dated February 22, 2015 |
• | The defined benefit pension plan will be closed to new employees. For existing employees, past accruals have been frozen and future defined benefit accruals will be at 50% of prior rates and capped after 30 years of total credited service. |
• | No change to the 401(k) plan with a dollar-for-dollar match up to 5% of eligible pay. |
• | Retiree medical for active employees will be eliminated, except for a transitional monthly stipend for eligible employees who elect to retire in the first 30 months of the contract period. To be eligible for the stipend an employee must, among other criteria, have been granted a pension under the defined benefit pension plan. The monthly stipend shall not exceed $800 per retiree, plus an additional $400 for a retiree’s spouse, and shall only be for reimbursement of medical insurance premiums. The stipend will be available only until the retiree reaches age 65, or dies, among other limitations. |
• | Employees will participate in the NECA/IBEW multi-employer medical plan. For 2015, the company’s contribution is approximately equal to 79% of the cost had these employees been on the company’s management health plan. Further, annual increases in the company’s costs are capped at 4% per year. |
• | For existing employees there will be a delayed ratification payment of $400, with general wage increases of 1% in August 2016 and 2% in August 2017. |
• | New hire wage rate increases will occur at 12-month intervals versus 6-month intervals under the expired agreements. |
• | Paid sick days will be limited to 6 per year versus unlimited paid sick days under the expired agreements. |
• | Short term disability will be limited to 6 months with a 60% of normal salary benefit versus 12 months and a 100% of normal salary benefit under the expired agreements. |
• | Prohibitions on layoffs included in the expired agreements were eliminated. |
• | Subcontracting rules were liberalized to permit subcontracting in a variety of circumstances including weather emergencies, spikes in service workloads and where management determines that due to evolving technological needs, different skills are necessary. |
• | Other operational rules such as call-outs, standby and transfers among locations were liberalized. |
• | The term of the collective bargaining agreements are from February 22, 2015 through August 4, 2018. |