Frontier Update June 25, 2014 A Deal Has been Reached

Connecticut Frontier – CWA Agreement Highlights June 25, 2014 ·        Frontier and the CWA have signed an agreement today that includes important provisions to the Union that enable us to be comfortable supporting the acquisition and allow Frontier to compete in the highly competitive Connecticut market against the cable operators who are all non-union This agreement is good for Local 1298 members who will be transferring to Frontier, for Frontier and Connecticut customers. ·        Frontier and the CWA have agreed to the following provisions: 1)    The current contract will be extended for an additional 2 years:  Extend from April 2016 to April 2018 with all the same benefits, pension & retiree medical plus wage increases of 2.5% and 2.25% in the two years that the contract is extended. 2)    No Increase in Healthcare.  2016 rates will stay in effect.  Eligible retirees who leave during the terms of the agreement will pay what active pay for the life of the agreement. 3)    Add 85 new union jobs - 75 within 6 months after deal close:  Includes moving new high tech jobs for network monitoring and U-verse technician support into the Union, setting up a Dispatch Center, adding 10 OPTs, and adding 30 call center jobs, in addition, Frontier has no intention of selling poles it will be acquiring from AT&T. 4)    Guaranteed Job Security and workforce size:  Frontier commits to maintain a union workforce size of 2,433 (the current workforce of 2,348 plus the 85 new jobs) and no layoffs for any existing employees through April 2018 5)    Connecticut call center 1st Priority:  Service Rep Call Centers will become part of Frontier’s virtual call centers and Connecticut customer calls will be routed first to Connecticut call centers, with a minimum of 60% of Connecticut customer calls routed to Connecticut centers along with 40% of out of state calls and the Union and Company will meet regularly on how to create a positive, high performing atmosphere. 6)    Wage increases for the U-verse Premise Technicians:  The U-verse existing wage schedule will be extended by 3 years to get to the higher Network Delivery Tech max rate of $39.  This will allow all U-verse Techs to progress to the same wage level as NDTs. 7)    Appendix F Elimination:  Many of the divisive provisions in Appendix F have been eliminated and certain provisions are now incorporated into the core contract and will only apply to  Premise Technicians who are not former core technicians. 8)    Single Tech Out:  This will allow Network Delivery Techs and U-verse Techs to service all customers which will give faster and better service for repairs and installations 9)    Work Apparel:  All Techs will be provided a Frontier uniform with the CWA Local 1298 logo on all shirts. 10)    Support for Family Care Committee & Community Service Fund:  Frontier will support these important programs and contribute $50K each year 11) Partner for Success of Business: The Union and the Company will establish a Partnership Forum and meet regularly to identify ways to grow the business in Connecticut 12) Frontier Founder’s Grant:  All union (and non-union) employees will receive 100 shares of Frontier stock at close to ensure they feel like owners in the Company. Value of $600 per employee. ·       The Union now supports Frontier’s acquisition of the AT&T wireline & U-verse business ·       Frontier plans to hold employee meetings this summer with transferring employees ·       This is a positive agreement and we look forward to working with Frontier to grow the business in Connecticut ·       A joint press release will be issued today and the PURA hearings begin tomorrow.