AGREEMENT

BETWEEN

FRONTIER, A CITIZENS COMMUNICATIONS COMPANY

OF OREGON

AND

INTERNATIONAL BROTHERHOOD

OF

ELECTRICAL WORKERS, AFL-CIO

LOCAL 89

EFFECTIVE

NOVEMBER 1, 2005 THROUGH OCTOBER 31, 2008

TABLE OF CONTENTS

Article NumberSubjectPage Number

Article 1
Article 2
Article 3
Article 4
Article 5
Article 6
Article 7
Article 8
Article 9
Article 10
Article 11
Article 12
Article 13
Article 14
Article 15
Article 16
Article 17
Article 18
Article 19
Article 20
Article 21 / Terms of Agreement 1
Recognition-Purpose and Scope 1
Employer Rights 3
Union Rights 3
Grievance Procedure 4
Arbitration 5
Status of Employment 6
Force Reduction 7
Work Day - Work Week 10
Overtime, Premium Payments and Per Diem 10
Holidays 12
Vacations 13
Leave of Absence 14
Sickness/Accident Payment Plan 15
Paydays 16
Working Rules 16
Tools and Safety 17
Transfers/ Job Bidding 17
Group Insurance and Retirement Plans 18
Wage Schedules 19
Wage Incentive and Bonuses 20
Signature Page 21

i

AGREEMENT

This Agreement made and entered into this 1st day of November, 2005, between FRONTIER, A CITIZENS COMMUNICATIONS Company of Oregon (hereinafter called “Company”) and Local Union 89 of the International Brotherhood of Electrical Workers, AFL-CIO (hereinafter called “Union”), hereby mutually establishes and agrees upon the working conditions and wage schedules hereinafter set forth.

ARTICLE 1

Terms of Agreement

1.1This Agreement shall become effective as of November 1, 2005 and shall continue in full force and effect through October 31, 2008 and shall continue in full force and effect from year to year thereafter unless one of the parties shall notify the other at least sixty (60) days prior to the expiration of the then current term of its desire to terminate, modify, amend or change the same.

1.2This Agreement shall be subject to amendment at any time by mutual consent of the parties hereto. Such amendment shall be reduced to writing, state the effective date of the amendment and be executed in the same manner as in this Agreement.

1.3In the event that any provisions of this Agreement shall at any time be made invalid by applicable legislation or be declared invalid by any court of competent jurisdiction, such action shall not invalidate the entire Agreement, it being the express intention of the parties hereto that all other provisions not made invalid shall remain in full force and effect.

1.4It is agreed that no change in the Agreement resulting from the amendments made herein shall cause any reduction in wage rate or present employees in the classification affected.

1.5The parties hereto agree that they and their successors and assigns shall be bound by the terms and conditions of the Agreement.

1.6Notices permitted or required to service by one party upon the other under the provisions of this Agreement shall be sufficiently served for all purposes herein when mailed by certified mail postage prepaid, to the Business Manager, Local Union 89, IBEW, PO Box 2330, Everett, Washington 98203, for service upon the Union; and applicable Manager, Employee/Labor Relations, 3 High Ridge Park, Stamford, Connecticut 06905, for service upon the Company, and the date of receipt of such notices shall be the controlling date for the purposes there under. Each party shall promptly inform the other of any change in the address set forth in this Section.

ARTICLE 2

Recognition-Purpose and Scope

2.1For the purpose of collective bargaining with respect to rates of pay, wages, hour of employment and other conditions of employment, the Company recognizes the Union as the exclusive representative of the Company’s Myrtle Creek District bargaining unit employees for whom the National Labor Relations Board certified the Union in Case No. 36-RC-3468.

2.2The Union agrees to act fairly and impartially for all employees for whom it shall be the bargaining agency.

2.3The Company agrees to meet with the properly accredited officers, representatives and/or committees of the Union for all questions or grievances arising hereunder.

2.4All employees covered by the terms of this Agreement shall be required to become and remain members of the Union as a condition of employment from and after the thirty-first (31st) day following the date of their employment, or the effective date of this Agreement, whichever is later. The Company will allow the Union a reasonable amount of time for new employee orientation. The Company will notify the Union of new hires within (1) week.

2.4.1.The Company agrees to deduct Union dues during the second payroll period from the pay of its employees and pay to the Local Union specified such amount as is authorized in writing by the employee on a form acceptable to the Company. The Company agrees to make this deduction from the second payroll period of each month and to send a check for the total amount, together with a list of the individuals’ names for whom the deductions were made, to the Financial Secretary, as designated by the Union, within the current month. This authority shall be revocable by the employee by notice in writing delivered by mail to the Manager of the Company and the Financial Secretary of the Union involved.

2.5It is expressly understood and agreed that the services to be performed by the employees covered by this Agreement pertain to and are essential to the operation of a public utility and to the welfare of the public dependent thereon. Therefore, and in consideration thereof and of the agreements and condition herein, for the duration of this Agreement. The Union agrees that the employees covered by the Agreement, or any of them, will not be called upon or permitted to cease or abstain from the continuous performance of the duties pertaining to the positions held by them under the Company, in accord with the terms of the Agreement, and the Company agrees on its part to do nothing to provoke interruption of, or prevent such continuity of performance of said employees, insofar as such performance is required in the normal and usual operation of the Company’s business.

2.6The Union agrees for its members who are covered by this Agreement that they will individually and collectively perform loyal and efficient work and services, that they will use their influence and best efforts to protect property of the Company’s services to the public at all times.

2.7The Company and the Union agree that they will cooperate with each other to promote harmony and efficiency in labor relations.

2.8All maintenance, additions, alterations, and changes of physical properties of the Company shall normally be done by employees covered by this Agreement. However, nothing in this Agreement shall be construed to limit the Company in the contracting of such work provided that contracting such work shall not cause the lay off or part-timing of current regular employees who perform the same work as contracted with the exception that the sale of plant in place may include removal by purchaser. Work performed by the following job classifications shall be considered “core” positions and shall not be outsourced:

Network TechnicianSplicer

Complex Line AssignerCommunication Technician

Service Representative

2.9The wage rates contained in the Agreement shall not be construed as prohibiting the Company from paying higher wage rates than those shown, but no adjustment in either individual or group wage rates in the classifications covered by this Agreement shall be made without first notifying the Union.

2.10Neither the Company nor the Union will unlawfully discriminate against any employee because of race, sex, color, creed, religion, age, national origin, membership or non-membership in the Union, non-disqualifying physical or mental disability, status as a disabled and/or Vietnam Era Veteran or marital status.

2.11No employee covered hereunder shall be required as a condition of employment to pass through any picket line recognized by the IBEW.

ARTICLE 3

Employer Rights

3.1The Company has and will retain the exclusive right and power to manage its business and direct the working forces, including the right to hire, classify, evaluate, grade, suspend, reassign, lay off, discharge, promote, demote or transfer its employees, provided it does not conflict with the provisions of this Agreement. Nothing in this Agreement is intended to or is to be construed in any way to interfere with the recognized prerogative of the Company to manage and control the business, but each such employee covered by this Agreement shall possess the right of appeal through the grievance and arbitration procedures as provided by the terms of this Agreement.

ARTICLE 4

Union Rights

4.1An employee who requests time off for Union activities in addition to regular time off shall be granted such request if such time off will not inconvenience the operations of the Company or increase its operating expenses, provided further that such employees shall receive no compensation from the Company for such time.

4.2Any employee appointed or elected to office in the Union which requires part of or all of this time shall not lose his established seniority with the Company and shall be granted a leave of absence, upon application therefore, not to exceed three (3) years. Such leave may be extended from time to time by mutual consent.

4.3The Union may designate Shop Stewards as it deems necessary for the proper administration of its affairs and for the proper execution of the provisions of this Agreement. The Union Shop Steward shall on request to and permission from the State Manager or his designate, be allowed reasonable time during working hours without loss of pay to attend to Union matters which relate to employees covered under this Agreement.

4.4The Company agrees to permit the Union to use reasonable space for the purpose of posting official bulletins on bulletin boards furnished by the Company.

4.5Any Supervisor disciplining an employee shall make a report in writing giving the reasons for discipline. A copy of the report shall be forwarded to the Company Personnel Department, and a copy will go to the employee. A copy will go to the respective Union Business Representative. The provisions of this Article shall also apply in cases of termination for cause.

ARTICLE 5

Grievance Procedure

5.1The Company and the Union will promptly meet and deal with each other, through their respective representative, with respect to any dispute involving interpretation, application or alleged violation of any provision of this Agreement. All such matters shall be adjusted in accordance with the grievance procedure hereinafter defined.

5.2(a)Before a written grievance is submitted a discussion shall be held between the grievant and/or Shop Steward and the involved Supervisor. Said discussion shall be for the purpose of attempting to resolve the grievance issue before being committed to writing.

5.2(b)STEP ONE: Any employee or group of employees having a grievance shall present such in writing to the Union Steward. The Steward shall thereupon prepare and present to the aggrieved employee's Supervisor a written "Notice of Grievance" within twenty (20) calendar days of the date that the circumstance first occurred giving rise to the grievance, with copies to the Company's designated Representative, the Steward, and the Union's Area Business Representative setting forth, so far as may be applicable (a) the names of the employee(s) claiming to be aggrieved (b) the nature of the grievance and the circumstances out of which it arose; (c) the remedy of correction the Company is requested to make, and (d) the section or sections of the agreement if any, relied upon or claimed to have been violated.

5.3The Company and the Union will endeavor whenever practicable to settle any grievance at this point, such settlement to be signed by both parties and copies thereof to be furnished to the Company’s designated Representative, the Steward and the Union’s Area Business Representative.

5.4The Supervisor shall furnish a written answer to Step One to the Union Steward with a copy to Union Area Business Representative postmarked within ten (10) calendar days after its representation by the Steward. If settlement is not reached Step Two may be initiated.

5.5STEP TWO: If a grievance is not settled under Step One, the Union’s Area Business Representative or other authorized representative shall request in writing a hearing at Step Two with the Company’s State Manager or his designated representative within ten (10) calendar days of the Company’s answer to Step One. If settlement is reached, a written settlement agreement will be signed by both parties.

5.6If no settlement is reached the Company’s Representative will furnish written answer to the Union’s Area Business Representative within ten (10) calendar days after the meeting.

5.7STEP THREE: PRE-ARBITRATION: If the grievance is not settled at Step Two the Union’s Area Business Representative or other authorized representative may within ten (10) calendar days after receipt of the written answer to Step Two, request, in writing, a pre-arbitration meeting. The request for a pre-arbitration meeting will be forwarded to the Manager of Human Resources. The Manager of Human Resources or his designated representative shall, within ten (10) calendar days after receipt of this notice, discuss the Grievance with the employee, Shop Steward and/or the Union’s Area Business Representative. The Company and the Union may call and present witnesses to testify during the discussion. If settlement is reached, a written settlement agreement will be signed by both parties. If no settlement is reached, the Manager of Human Resources will furnish a written answer to the employee and the Union’s Area Business Representative within ten (10) calendar days after the discussion.

5.8All steps of the grievance procedure must be used. Failure of either party to meet the time limits provided above will result in a default, unless the time limits are extended by mutual agreement. If a default occurs, the grievance will be escalated to the next step.

5.9In the event that any dispute (as defined in Section 5.1, above) arising under this Agreement shall not be settled; as provided in the foregoing sections, such dispute may be submitted to arbitration at the request of the Union upon written notice to the Company within fifteen (15) calendar days after receipt of the final action under the grievance procedure.

ARTICLE 6

Arbitration

6.1The Company and the Union agree to use every means to facilitate the arbitration in every way possible, and to this end the parties agree that they will use their best efforts to effect a final decision on any matter submitted to arbitration.

6.2Either party may call any employee as a witness in any proceeding before the Arbitrator, and if the employee is on duty, the Company agrees to release him from duty so he may appear as a witness. If any employee is called by either party to appear before the Arbitration for any purpose, the party calling him will reimburse him for all expenses, including time lost. To this end the following rules shall apply.

6.3Only those disputes between the Company and the Union concerning provision of this agreement that have been submitted and are not settled in accordance with the foregoing grievance procedure shall be disposed of by arbitration in the matter and form hereinafter provided.

6.4Upon request for arbitration, the Union shall submit a written request to the American Arbitration Association to submit a list of seven (7) names eligible to serve as Arbitrator, one of whom must be selected by the following procedure.

6.5Within ten (10) days after receipt of the names the Company Representative and the Union Business Representative, or their designee, shall contact each other to alternately strike names from the list until but one remains. The Union shall first strike from the list. The one remaining person shall be the Arbitrator.

6.6The arbitration hearing shall then be scheduled during the thirty (30) days following the selection of the Arbitrator unless a later date is found agreeable to the parties or necessary for the convenience of the Arbitrator.

6.7The decision of the Arbitrator shall be final and binding upon both parties.

6.8Each party shall bear the expense of preparing and presenting its own case. The compensation of the Arbitrator for time and expenses shall be borne equally by the parties hereto.

6.9The cost of transcript of the arbitration hearing will be shared equally by the parties unless it is mutually agreed no transcript is necessary.

ARTICLE 7

Status of Employment

7.1(a)COMPANY ACCREDITED SERVICE - The total countable time of employment in the service of the Company, its subsidiaries or predecessor companies and subsidiary telephone companies of Frontier/Citizens Communications. Uses: Calculation of amount of sick leave, vacations, service awards and eligibility for retirement benefits, etc. Previous regular employees who are rehired after a voluntary or non-voluntary termination will have their employment record bridged after five (5) years of continuous service. Laid off employees shall have their Company Accredited Service bridged immediately if rehired within twenty-four (24) months of a layoff.

7.1 (b)BARGAINING UNIT SENIORITY - The total countable time of continuous employment within the District Bargaining Unit Uses: work relocation, reduction forces, transfer, promotion, rehiring, and selection of vacation and preference in the selection of shifts and days off. Bargaining Unit Seniority shall not be bridged or prorated except laid off employees shall have Bargaining Unit Seniority bridged immediately if rehired within twenty-four (24) months of layoff.