Press Release

PUC Investigates Newly Merged AT&T/SBC’s Job Layoffs in PA - 1 of 2 PUC Actions Today Dealing with Mergers and Economic Development

Published on 3/16/2006

Filed under: Telecommunications

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today directed its staff to investigate AT&T’s recent workforce reductions in Pennsylvania -- and their impact on service quality and the call center that handles calls between people who are deaf, hard of hearing and speech disabled, and the hearing public.  This is one of two actions the PUC took today related to mergers and economic development.

In a motion approved today, Chairman Wendell F. Holland said, “A public utility is obligated to provide safe and reliable service.  Moreover, the Commission has the statutory authority to examine whether public utilities provide reliable and safe public utility service in Pennsylvania.  As such, I believe it is in the public interest that the matter of AT&T’s recent workforce reductions in Pennsylvania, particularly as they relate to TRS, be referred to appropriate Commission staff to initiate an investigation, to determine whether the facts warrant further action.”

By Order entered Oct. 6, 2005, the Commission approved the merger of AT&T Corporation and SBC Communications Inc. (AT&T).  In its application, AT&T stated, “…the merger of SBC and AT&T will create a much stronger job outlook for the combined organization… The merger, however, will position the combined organization for growth, which in time will produce jobs.”  In addition, AT&T indicated, “the merger will not affect AT&T-PA’s role as the Telecommunications Relay Service (TRS) provider in Pennsylvania.  The merger will be transparent to the hearing impaired users of the service in the Commonwealth.”

In its merger application, AT&T made assurances that the merger would not adversely affect the continuity of Pennsylvania TRS service and that it would be able to meet its regulatory obligations and commitments as TRS provider.  Yet, six months after the closing of its merger, AT&T proposes to reduce substantially the workforce of its only remaining Pennsylvania-based TRS call center. 

In February 2006, it was reported AT&T intended to reduce its workforce by more than 200 employees in Western Pennsylvania.  It was also reported that AT&T would eliminate approximately 50 out of 200 positions at another call center in New Castle, Lawrence County, which serves TRS customers in Pennsylvania. 

“This reduction of workforce in Pennsylvania is of particular concern because AT&T is the sole provider of TRS in Pennsylvania,” Chairman Holland said.  “As the sole provider of TRS in Pennsylvania, AT&T provides services to thousands of hard of hearing and deaf Pennsylvania citizens.”            

In an informal investigation such as this, PUC staff will examine the issue related to service quality; use internal resources, specifically the PUC Bureau of Audits; meet with the company and seek information; and take action depending upon its findings.  If no adverse effect on service quality is apparent, no further action is taken.  If service quality is adversely affected, staff would file a formal complaint, which only then would initiate a formal trial-type proceeding before a PUC Administrative Law Judge.

TRS has been a priority of the PUC, which is partnering with AT&T, the PA Relay Service Advisory Board and the PUC’s Consumer Advisory Council to educate the hearing public about communicating by phone with people who are deaf, hard of hearing or speech disabled. 

Commissioner Terrance J. Fitzpatrick voted no on this matter and issued a statement.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.

For recent news releases, or more information about the PUC, visit our Internet homepage at www.puc.state.pa.us.

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Docket No.: I-00060111   

Contact:

• Tom Charles
  Director of Communications
  717-787-9504
  thcharles@pa.gov