Sprint, CWA Reach Deal Over
A WALL STREET JOURNAL
ONLINE NEWS ROUNDUP
Tuesday, February 14, 2006
Sprint Nextel Corp. said it plans to complete the spinoff of
its local phone business into an independent company called
Embarq Corp. in the second quarter, after reaching an
agreement with a key labor union.
The Communications Workers of America said Monday it has
dropped its opposition to the terms of the spinoff, which
was announced in December 2004 when Sprint unveiled plans to
purchase Nextel Communications. Last year, the CWA asked
state regulators to intervene and some of its members went
"We received assurances over questions we had regarding the
financial characteristics of the new company and the
transfer of pension assets," said CWA Telecommunications
Vice President Jimmy Gurganus in a press release.
Embarq will have about $6 billion in annual revenue and
about 20,000 employees at the time of separation, Sprint
Nextel said. The CWA represents about 3,800 workers in the
local phone operations at Sprint Nextel in 12 states.
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