Verizon reaches pact with most union groups
Sunday August 20, 10:36 pm Eastern Time
(UPDATE: Adds details on agreements, remaining negotiations, background)
By Jessica Hall
NEW YORK, Aug 20 (Reuters) - A 15-day strike by 87,000 workers at U.S. local
telephone company Verizon Communications (NYSE:VZ - news) appeared to be
nearing an end on Sunday as the company struck a labour contract agreement with
two-thirds of its unions.
Company officials said they were working to complete talks with the last labour group. Union officials said those
negotiations could be completed shortly, which should allow unionised workers to return to their jobs on Monday.
Under Verizon's agreement with two of the three union bargaining units, unionised workers would get a 12 percent wage
increase over three years, improved pensions and other benefits, and continued job security protections.
The unions had already won the right to organise workers in Verizon's wireless telephone unit and union workers' access
to jobs installing high-speed Internet digital subscriber lines.
Their victory in winning access to jobs in Verizon's fast-growing units could have broad implications on other telephone
companies, especially those in the mostly non-union wireless industry, analysts said.
Unions could push for similar rights at other companies, which add to labour costs and eat into the sector's profits,
analysts said.
STRIKE COULD END ON MONDAY
Verizon has now reached agreement with the International Brotherhood of Electrical Workers, which represents about
15,000 of the striking workers, and has completed negotiations with the northern unit of the Communications Workers of
America (CWA).
But the company was still discussing the final language of its contract proposal with the southern CWA unit, which
represents 36,000 workers in the mid-Atlantic states.
Technically, there is no contract agreement with the CWA until deals were finalised with both the northern and southern
units, CWA spokeswoman Candice Johnson said.
The southern unit was expected to complete its negotiations shortly, the CWA said.
``The proposed agreement gives Verizon the flexibility we need to thrive in a highly-competitive, national marketplace,''
said Verizon vice chairman Lawrence Babbio.
``We will be able to raise our standards and productivity so that we can meet the increasingly sophisticated demands of
our customers and provide them with the most technologically-advanced products and services.''
The contract talks pitted New York-based Verizon, which is trying to expand beyond its traditional telephone business,
against unions representing the workers who keep the bulk of the company's operations running.
The company and unions resolved their major conflicts, such as the unions' rights regarding the wireless unit, more than a
week ago.
But talks have crawled since then over debates on transfers of work, mandatory overtime and working conditions.
Details about how these issues were resolved were not immediately available.
The unions wanted to reduce the stress and overtime imposed on service representatives who handle billing questions
and new service orders in Verizon's call centres.
The unions also wanted to prevent relocation of work and protect workers' jobs as Verizon digested the recent merger
of Bell Atlantic Corp and GTE Corp.
Verizon said it needed flexibility to adjust employees' schedules and work-loads to handle customer demand and
improve customer service.
WORKERS FACE BACKLOG, BALANCE SHEET SEEN UNHARMED
Despite the strike, most of Verizon's 27 million customers from Maine to Virginia had basic telephone service and
Internet access. About 30,000 managers monitored the phone network and repaired urgent problems, getting to about
25,000 orders a day.
If unionised employees return to work on Monday, they will have to clear a backlog of about 90,000 customer orders or
telephone line problems. New line installations, which were essentially put on hold during the strike, should now resume.
The walkout was the second strike in two years at the companies that merged to create Verizon. The company's longest
strike was a 17-week walkout in 1989 at the Verizon operations formerly known as NYNEX.
Analysts said the strike was likely to cause more damage to Verizon's public image than to its balance sheet. The union
workers walked out just as Verizon launched its new brand name to combat the summer merger of Bell Atlantic Corp
and GTE Corp.
The strike publicised the traditional, old-economy segments of Verizon's business just as the company was attempting to
craft an image as a technology-driven, Internet-era communications firm, said Donaldson Lufkin & Jenrette analyst
Richard Klugman. |
