A Coalition Beats Goliath: FUSE & CWA vs. AT&T
FUSE Media, one of the Nation’s few remaining Latino-owned and managed independent television programming networks, had just completed its Latino management-team buyout when AT&T (including DIRECTV, U-Verse, and streaming platforms) refused to renew FUSE’s distribution agreement at financial terms that would allow the network to continue successful operations. What had been a victory celebration of Latino media ownership looked like it might become a funeral... bankruptcy at the hands of the largest Pay-TV/MVPD provider in the U.S.
We went to work.
We helped FUSE to retain regulatory counsel and worked with that firm on a program carriage complaint at the FCC. But with only days left until FUSE’s agreement with AT&T would lapse, we needed to take decisive action that would have a near-term impact. We needed a heavy hitter.
Another of our clients, the Communications Workers of America, also was fighting with AT&T, its largest employer of CWA members, over AT&T’s broken promises to workers, including promises made to keep jobs after the AT&T/Warner merger and to use windfall tax cuts to keep AT&T workers employed. We saw a parallel in FUSE’s and CWA’s struggles: a multi-billion dollar, publicly traded conglomerate reaping rewards from the government, yet squeezing the “little guy” --small, minority-owned programmers and wage/hour workers. We recommended to our two clients that they work together, through the Goodfriend Group, to secure a fair deal for all.
They agreed.
CWA publicly proclaimed its support for FUSE and minority programmers, audiences, and communities in general:
“If you believe that workers should be allowed to organize, minorities should be represented in our media, and minority ownership of video platforms should be encouraged, then we ask you to stand with us, the Communications Workers of America (CWA) and FUSE MEDIA (FUSE), in our effort to achieve greater fairness and inclusion from one of the largest corporations in the U.S. Despite its promises and rhetoric to the contrary, AT&T’s treatment of workers and minority networks deteriorated dramatically after it acquired Time Warner.”
Next, FUSE took the unusual step of publicly supporting workers’ right to organize, including at its own company. CEO Miguel Roggero issued a statement:
“We thank CWA for supporting our effort to maintain distribution on AT&T. Given that our audience is comprised of young, multicultural, often front-line workers such as nurses, emergency responders, teachers, and retail workers, we respect the efforts of workers who are members of CWA and other labor unions to protect themselves and improve their conditions through collective bargaining. To that end, we would remain neutral as an employer should our own workers ever decide to explore forming a union here at FUSE; and in the event that a clear majority supported unionization, we would recognize and bargain in good faith with the workers chosen representative.”
Finally, CWA and FUSE contacted Members of Congress, governors, mayors, and opinion leaders to draw attention to AT&T’s behavior. The combined firepower of CWA’s extensive grassroots network and relationships with elected officials, together with FUSE’s brand, audience, reputation among lawmakers, and historic status as a minority-owned media company changed the trajectory of the battle.
Key Members of the Congressional Hispanic Caucus, such as CHC Chairman Joaquin Castro and Small Business Committee Chairwoman Nydia Velázquez, voiced their support for FUSE. Governors and local officials contacted AT&T and urged the company to come to terms with FUSE and keep the network alive.
It worked.
Today, FUSE remains distributed on AT&T platforms. CWA has shown that working with a union is good for business - not only because treating workers with respect can help the bottom line, but because labor will be a fearless, effective ally in crucial fights.
The Goodfriend Group is proud of the role we played in bringing two of our clients together to achieve a fair outcome forged through shared values and a vision for how the American economy can be inclusive and expansive at the same time.