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Sprint, CWA Reach Deal Over Embarq Spinoff
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 on strike.

"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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