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AnonymousInactivehttp://www.stamfordadvocate.com/news/article/Xerox-purchase-of-ACS-comes-with-strings-353460.php
XEROX PURCHASE OF A.C.S. COMES WITH
STRINGS
Xerox Corp. shareholders
approved its $6.2 billion acquisition of Dallas-based Affiliated
Computer Services Inc. Friday as union demonstrators picketed outside
the company’s Norwalk headquarters in support of a new labor contract
for some ACS workers.”We want Xerox to know what they’re buying. They
(ACS) are rogue employers,” said Tim Dubnau, district organizing
coordinator for the Communications Workers of America, who attended the
meeting. “The AFL-CIO has shares in Xerox. We have our certificate of
stock. As a shareholder, I’m voting for the merger.”We’re hoping Xerox
is the grown-up here and bargains with the union. It’s up to Xerox to
put a stop to this and call ACS and tell them to negotiate.”The
simmering labor strife involves an E-ZPass call center on Staten Island,
N.Y., staffed by 300 ACS employees.The employees voted last year to
join Local 1102 of the CWA, an AFL-CIO union, and are hoping that when
ACS becomes a unit of Norwalk-based Xerox it will change its approach
toward to new labor unit and decide to negotiate a contract.About
a dozen CWA members picketed in front of Xerox on Glover Avenue,
reminding shareholders as they entered the property that ACS and the
union were at odds. More than 96 percent of Xerox common shares that
voted supported the deal, while more than 86 percent of the outstanding
Class “A” and “B” ACS stocks were cast in favor of the acquisition.ACS,
which has 74,000 global employees supporting multi-national
corporations and government agencies in more than 100 countries, offers
business process outsourcing support in finance, human resources,
information technology, transaction processing and customer care.Joining
Dubnau on the picket line was Dorothy McLeod, an 11-year employee of
the E-Z Pass call center.”I’m hoping they (Xerox) will treat us more
fairly. I understand they are a union company,” she said.ACS has
appealed the National Labor Relations Board’s certification of the
local, contending that the CWA did not offer other CWA employees at
other E-Z Pass facilities in New York state an opportunity to vote on
formation of the bargaining unit.“We’re concerned that the CWA
may have violated the rights of some employees during the union
recognition campaign,” said ACS spokesman Kevin Lightfoot, commenting
that ACS employees will retain their jobs.It’s not unusual for a company
to delay contract talks with a new union after it is certified by the
NLRB, said attorney Robert Brody of Brody & Associates in
Stamford.”Three out of four companies that unionize don’t negotiate a
contract in the first year,” he said.Xerox is aware of the
impasse faced by ACS and the union, said Xerox spokesman Bill Mckee,
though he declined to comment on the company’s viewpoint. “At this
point, this is between ACS and CWA, and it would be inappropriate to
comment,” he said.McKee added he expects the deal to close next
week. CWA stockholders approved the purchase Friday afternoon.”Our
shareholders’ vote of confidence reflects the strategic and financial
benefits of this acquisition,” said Ursula Burns, Xerox chief executive
officer, in prepared comments. “Through the acquisition of ACS, Xerox
gains a growth catalyst that secures a strong, competitive future for
our company and increasing value for our customers and shareholders.”Traded
on the New York Stock Exchange under the ticker symbol “ACS,”
Affiliated Computer Services is a $6.5 billion company with revenue
growth of 6 percent and new business signings of $1 billion in annual
recurring revenue during its fiscal 2009.Under the terms of the
agreement, ACS shareholders receive $18.60 per share in cash and 4.935
Xerox shares for each ACS share they own. Xerox assumes ACS’s $2 billion
debt.Xerox shares lost 18 cents and closed at $8.47 Friday, while ACS
lost $1.39 and closed at $59.64.Last month, Xerox reported fourth
quarter revenue of $4.2 billion, a 3 percent drop from the same period a
year ago. Revenue for 2009 was $15.2 billion, compared with $17.6
billion in 2008. -
AuthorFebruary 8, 2010 at 10:38 AM
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