Study suggests T-Mobile-Sprint merger would cut employee pay from all remaining major U.S. carriers

Study suggests T-Mobile-Sprint merger would cut employee pay from all remaining major U.S. carriers
A new study of the proposed T-Mobile-Sprint merger shows that if the deal is closed, employees working in the company owned stores would face wage cuts. In addition, the report from the Economic Policy Institute and the Roosevelt Institute (via The Kansas City Star) adds that wages for those working for Verizon, AT&T, and T-Mobile authorized resellers will also be lowered following the merger, if it gets approved.

The merger could reduce demand for representatives to sell phone, accessories and services at these stores. While T-Mobile and Sprint say that the merger would create new jobs immediately, the Communications Workers of America union says that 28,000 jobs will be lost if the merger goes through. Duplication of jobs would be a major reason to expect layoffs from the deal, and certain overlapping stores could be consolidated or closed.

The report says that the weekly pay packet for affected workers could be as much as 7% lighter each week. But that is the worst case scenario cited by the study. In most markets, the weekly decline will be between 1% and 3%. Among the hardest hit 50 markets, employee wages could decline by as much as $65 a week or $3,380 over the course of a year. On the other hand, some employees in those markets could end up losing $10 a week or $520 over a year. Employees in Kansas City, Kansas and in St. Louis, Missouri would feel the brunt of these pay cuts according to the study.

The report adds that employee wages could be cut even if there were no layoffs. The study's authors base this on a concept called monopsony, which allows employers to pay employees less than what they are worth due to the lack of competition for that labor.

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8 Comments

1. Jguard

Posts: 4; Member since: Aug 24, 2011

This sounds like a bunch of propaganda

7. DarthJarJar

Posts: 55; Member since: Feb 01, 2018

It’s not. Sprint specifically used to pay reps based off percentage to goal. So even if you were in a small store busting your ass, you’d make the same as a busy store rep doing the same. Unfortunately, they’ve been cutting costs and they’re doing this by paying reps based off what they sell, so unless you’re in a busy store... you’re making close to minimum and making a minimum in commission. Those reps in busy stores are making less than they did 5 years ago as well. I have been in the industry for nearly a decade now and each carrier changes their commission structure in a way that guarantees less money for their reps. They use verbatim like “You just gotta sell one more ____ a day and you can make the same amount” or “Now you’ll make a lot more of you sell this____”. In the end... reps will make less though.

2. Venom

Posts: 3410; Member since: Dec 14, 2017

I don't think it matters in the end. Even if the merger doesn't happen, Sprint won't be around much longer because they're losing subscribers and bleeding money left and right. It will be just 3 carriers soon enough either way it goes.

3. drazwy

Posts: 354; Member since: Jan 15, 2014

After just switching over to Google Fi, i have my first experience with Sprint when it switches to use them. Wow. How is this carrier still relevant. How did they last this long?

4. Dr.Phil

Posts: 2340; Member since: Feb 14, 2011

In reality it's a damned if you do, damned if you don't scenario. Sprint has shown no desire to build out their network to compete. It's much too costly.

5. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

"Ohhhhhh... The Pro-pa-gandists are frightful... "But the Smiles are sooooo delightful. "For no-thing will cause the merge to sloooow.... "Saaaay, 'Hello' to the new T-Moooooo!"

6. AngelicusMaximus

Posts: 671; Member since: Dec 20, 2017

I'm not even mad. That's pretty good.

8. ShadowHammer

Posts: 201; Member since: Mar 13, 2015

The merger seems like a good way for Sprint & T-Mo to compete with the big two. But there is likely to be some fallout from that. Entry-level positions in large companies tend to be the most volatile and expendable.

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