Citing Lack of Progress, Verizon Workers Threaten Strike
By STEVEN GREENHOUSE
The main union representing workers at Verizon Communications warned Saturday night that 35,000 of its members could go on strike Sunday morning because of a lack of progress in contract negotiations.
Officials with the union, the Communications Workers of America, said Verizon was demanding so many concessions — on health coverage, pensions and other matters — that it would set workers back 50 years.
Verizon executives say far-reaching concessions are needed because of a long-term drop in revenue and profit in its land line telephone business and because of intense competition in television and Internet services.
The Communications Workers and the International Brotherhood of Electrical Workers, which represents another 10,000 workers at Verizon, have both threatened to strike at 12:01 a. m. Sunday, when their contracts expire, unless a settlement is reached by then. The strike would involve telephone repair technicians, customer service representatives and cable installers from Massachusetts to Virginia.
In a statement issued at 6:30 p.m. Saturday, Candice Johnson, a spokeswoman for the Communications Workers, said negotiations “are not moving forward.”
“Over months of negotiations, there has been no real bargaining by Verizon management,” Ms. Johnson said. “In fact, every major concession demand — more than 100 in all — remains on the table. Even at the 11th hour, with contracts set to expire, Verizon continues to seek to strip away 50 years of contract gains.”
A Verizon spokesman, Peter Thonis, said Saturday evening that the company executives “continue to negotiate in good faith.”
In the talks being held in New York and Philadelphia, Verizon has asked its unionized workers to start contributing to their health care premiums, proposing that workers pay $1,300 to $3,000 for family coverage, depending on the plan. Verizon executives say the contributions would be similar to those already made by its 135,000 nonunion employees.
Verizon has also called for freezing pensions for current employees and eliminating traditional pensions for future workers, while making its 401(k) plans somewhat more generous for both. It would also like to limit sick days to five a year, as opposed to the current policy, which company executives say sets no limit.
In addition, Verizon wants to make it easier to lay off workers without having to buy them out and wants to tie raises more closely to job performance, denying annual raises to subpar performers.
Union officials say these proposals are the most aggressive Verizon has ever made.
Verizon said many field technicians earn more than $100,000 a year, including overtime, with an additional $50,000 in benefits. But union officials say the field technicians and call center workers generally earn $60,000 to $77,000 before overtime, saying that benefits come to well under $50,000 a year.
The crux of the clash is Verizon’s financial health. The company says its traditional wire line division is struggling, while the union says Verizon’s overall business, including Verizon Wireless, a joint venture in which Verizon is the majority owner, is thriving.
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The strike, involving 45,000 workers, is the first walk-out that Verizon, one of the two big U.S. telephone network operators, has faced since 2000, when about 80,000 workers went on strike for about three weeks.
Verizon and two unions -- The Communications Workers of America and the International Brotherhood of Electrical Workers -- had been in talks since late June but were still far apart when their contract expired Saturday night.
The workers who went on strike on Sunday are technicians and customer support employees in the wireline unit, which provides traditional phone services to homes and businesses in the Northeast as well as high-speed Internet and FiOS television service.
The two sides were unable to agree on issues related to healthcare contributions, pension plans and work rules, according to Verizon and the CWA.
Verizon is looking to keep costs in check at its wireline business, which has been declining for a decade as customers have disconnected their home phones in favor of cellphone and Internet services.
A representative for the CWA, which represents about 35,000 of the workers, said that bargaining talks were expected to resume on Sunday while employees were told to start picketing as early as 6:00 a.m. EDT outside their work locations.
"As of now, talks are not taking place today. We're always willing to talk. We're willing to return to the bargaining table at any time," Verizon spokesman Richard Young said in an email on Sunday afternoon.
"We're in the process of implementing our emergency action plans," Young added.
Verizon said late Saturday night that it had trained tens of thousands of employees, from retirees to management, to fill the role of the workers who are now on strike.
"We are confident that we have the talent and resources in place to meet the needs and demands of our customers," Marc C. Reed, Verizon's executive vice-president of human resources, said in a statement.
Workers represented by the CWA will get $200 a week in strike benefits starting on day fifteen of the strike, if it lasts that long, according to the union. This rises to $300 a week if it lasts 30 days. The IBEW did not immediately respond to a call related to its strike benefit pay.
The CWA says the contributions to healthcare that Verizon wants the union members to make were unacceptable, and that increases in deductibles would make the proposed healthcare plan unaffordable.
The unions warned of a potential strike and began to mobilize support among their members in early July. Verizon did not budge from the set of changes it asked for, which the unions were demanding the company take off the table.
With only hours left under their contract late on Saturday night, both unions issued statements accusing Verizon of not "getting serious" in negotiations. The CWA, which represents 35,000 workers under contract, said all the major concessions Verizon was asking for were yet to be agreed upon.
But the CWA said the profitable company is asking for far too many concessions from affected workers, who include technical and customer service employees in Verizon's wireline business.
Among the changes it is seeking, Verizon said it wants to freeze employee pension plans and replace them with an "enhanced 401(k) plan." It also wants workers to contribute to healthcare insurance premiums.
CWA members in July authorized union leaders to call a strike if negotiations stalled, with 91 percent of votes in favor of the strike.
Verizon has 93,000 workers in its wireline business, of whom 58,000 are unionized. Including its Verizon Wireless venture with Vodafone Group Plc, the company's total workforce is 196,000 employees.
(Reporting by Sinead Carew, Roy Strom and Dhanya Skariachan; Editing by Vicki Allen and Marguerita Choy)
Officials with the union, the Communications Workers of America, said Verizon was demanding so many concessions — on health coverage, pensions and other matters — that it would set workers back 50 years.
Verizon executives say far-reaching concessions are needed because of a long-term drop in revenue and profit in its land line telephone business and because of intense competition in television and Internet services.
The Communications Workers and the International Brotherhood of Electrical Workers, which represents another 10,000 workers at Verizon, have both threatened to strike at 12:01 a. m. Sunday, when their contracts expire, unless a settlement is reached by then. The strike would involve telephone repair technicians, customer service representatives and cable installers from Massachusetts to Virginia.
In a statement issued at 6:30 p.m. Saturday, Candice Johnson, a spokeswoman for the Communications Workers, said negotiations “are not moving forward.”
“Over months of negotiations, there has been no real bargaining by Verizon management,” Ms. Johnson said. “In fact, every major concession demand — more than 100 in all — remains on the table. Even at the 11th hour, with contracts set to expire, Verizon continues to seek to strip away 50 years of contract gains.”
A Verizon spokesman, Peter Thonis, said Saturday evening that the company executives “continue to negotiate in good faith.”
In the talks being held in New York and Philadelphia, Verizon has asked its unionized workers to start contributing to their health care premiums, proposing that workers pay $1,300 to $3,000 for family coverage, depending on the plan. Verizon executives say the contributions would be similar to those already made by its 135,000 nonunion employees.
Verizon has also called for freezing pensions for current employees and eliminating traditional pensions for future workers, while making its 401(k) plans somewhat more generous for both. It would also like to limit sick days to five a year, as opposed to the current policy, which company executives say sets no limit.
In addition, Verizon wants to make it easier to lay off workers without having to buy them out and wants to tie raises more closely to job performance, denying annual raises to subpar performers.
Union officials say these proposals are the most aggressive Verizon has ever made.
Verizon said many field technicians earn more than $100,000 a year, including overtime, with an additional $50,000 in benefits. But union officials say the field technicians and call center workers generally earn $60,000 to $77,000 before overtime, saying that benefits come to well under $50,000 a year.
The crux of the clash is Verizon’s financial health. The company says its traditional wire line division is struggling, while the union says Verizon’s overall business, including Verizon Wireless, a joint venture in which Verizon is the majority owner, is thriving.
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Verizon unions strike after contract talks fail
NEW YORK |
(Reuters) - Almost half the workers in Verizon Communications wireline telecommunications business went on strike on Sunday as negotiations for a new labor contract failed.The strike, involving 45,000 workers, is the first walk-out that Verizon, one of the two big U.S. telephone network operators, has faced since 2000, when about 80,000 workers went on strike for about three weeks.
Verizon and two unions -- The Communications Workers of America and the International Brotherhood of Electrical Workers -- had been in talks since late June but were still far apart when their contract expired Saturday night.
The workers who went on strike on Sunday are technicians and customer support employees in the wireline unit, which provides traditional phone services to homes and businesses in the Northeast as well as high-speed Internet and FiOS television service.
The two sides were unable to agree on issues related to healthcare contributions, pension plans and work rules, according to Verizon and the CWA.
Verizon is looking to keep costs in check at its wireline business, which has been declining for a decade as customers have disconnected their home phones in favor of cellphone and Internet services.
A representative for the CWA, which represents about 35,000 of the workers, said that bargaining talks were expected to resume on Sunday while employees were told to start picketing as early as 6:00 a.m. EDT outside their work locations.
"As of now, talks are not taking place today. We're always willing to talk. We're willing to return to the bargaining table at any time," Verizon spokesman Richard Young said in an email on Sunday afternoon.
"We're in the process of implementing our emergency action plans," Young added.
Verizon said late Saturday night that it had trained tens of thousands of employees, from retirees to management, to fill the role of the workers who are now on strike.
"We are confident that we have the talent and resources in place to meet the needs and demands of our customers," Marc C. Reed, Verizon's executive vice-president of human resources, said in a statement.
Workers represented by the CWA will get $200 a week in strike benefits starting on day fifteen of the strike, if it lasts that long, according to the union. This rises to $300 a week if it lasts 30 days. The IBEW did not immediately respond to a call related to its strike benefit pay.
The CWA says the contributions to healthcare that Verizon wants the union members to make were unacceptable, and that increases in deductibles would make the proposed healthcare plan unaffordable.
The unions warned of a potential strike and began to mobilize support among their members in early July. Verizon did not budge from the set of changes it asked for, which the unions were demanding the company take off the table.
With only hours left under their contract late on Saturday night, both unions issued statements accusing Verizon of not "getting serious" in negotiations. The CWA, which represents 35,000 workers under contract, said all the major concessions Verizon was asking for were yet to be agreed upon.
But the CWA said the profitable company is asking for far too many concessions from affected workers, who include technical and customer service employees in Verizon's wireline business.
Among the changes it is seeking, Verizon said it wants to freeze employee pension plans and replace them with an "enhanced 401(k) plan." It also wants workers to contribute to healthcare insurance premiums.
CWA members in July authorized union leaders to call a strike if negotiations stalled, with 91 percent of votes in favor of the strike.
Verizon has 93,000 workers in its wireline business, of whom 58,000 are unionized. Including its Verizon Wireless venture with Vodafone Group Plc, the company's total workforce is 196,000 employees.
(Reporting by Sinead Carew, Roy Strom and Dhanya Skariachan; Editing by Vicki Allen and Marguerita Choy)
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