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NEW YORK (AP) — Thousands of striking Verizon workers will return
to work starting Monday night, though their contract dispute isn’t
over yet.
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Both the company and the union say they have agreed to narrow the
issues in dispute and have set up a process to negotiate a new
contract. But the talks are likely to be contentious. The two sides
still disagree on touchy subjects such as health care benefits,
pensions, and work rules.
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About 45,000 employees went on strike on Aug. 7, after their
previous contract expired. They work in the company’s landline
division in nine states from Massachusetts to Virginia.
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Verizon says that it needs to cut costs in the traditional landline
phone business, which is in decline as more Americans switch to
mobile phones. The company has proposed freezing its pension and
switching union workers to its non-union health plan, which has
higher costs for employees.
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The unions counter that the landline business supports the growing
wireless business and that Verizon, which earned about $3 billion
in the first half of the year, can afford to maintain the benefits
in the contract that expired on Aug. 6. They also say Verizon put
too many proposals on the table.
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Of the 45,000 striking workers, 35,000 are covered by the
Communications Workers of America, while 10,000 are covered by the
International Brotherhood of Electrical Workers.
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Jim Spellane, a spokesman for the IBEW, said the strike occurred
because Verizon “came in with an extreme set of proposals and never
really moved off of them.”
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But after the 14-day strike, “I think they realized the unions are
serious,” he said. “It’s in everybody’s best interest to get back
to work.”
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Verizon spokesman Richard Young said that many of the benefits and
work rules were put in place when Verizon faced much less
competition in its landline business. “The contracts are not
reflective of today’s marketplace,” he said.
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Spellane said that much of the traditional phone network helps
support the faster-growing wireless business. And many of the
technicians that went on strike install and maintain the company’s
new fiber optic network, FiOS, which provides Internet, video and
phone services.
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Verizon has 196,000 workers, with 135,000 of those non-union. The
wireless division, which wasn’t affected by the strike, is mostly
non-union.
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Nearly 30 percent of U.S. homes have dropped landline phone service
and rely on mobile phones only, according to the National Center
for Health Statistics.
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Verizon Wireless added 1.3 million wireless customers in the
April-June quarter, for a total of 89.7 million. That growth has
been helped by the addition of Apple Inc.’s iPhone in February. The
company owns 55 percent of Verizon Wireless, with Britain’s
Vodafone owning the rest.
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Meanwhile, total voice connections, which measures FiOS digital
voice connections in addition to traditional landlines, declined
7.9 percent to 25 million. But the company has seen increases of
more than 20 percent in customers subscribing to both FiOS Internet
and TV services over the past 12 months.
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Candice Johnson, spokeswoman for the CWA, said Verizon is asking
$20,000 per worker in annual concessions. The company has disputed
that but hasn’t offered its own figure.
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Johnson said earlier this month that the union’s best-paid Verizon
workers get about $77,000 a year in New York. The company puts the
figure at $91,000 and said benefits average $50,000.
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“These are very important issues” being negotiated, she said. “They
are issues that help families ensure a middle-class
life.”
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While union workers walked the picket lines, managers and non-union
employees performed their duties.
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Verizon’s Young said the company began training managers and
non-union workers at the beginning of the year to prepare for the
strike. Thousands of employees were brought in from as far away as
Texas, California, and Colorado, he said. They have worked 12 hours
a day, six days a week, he said.
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The company also used newer technologies to resolve 50,000 problems
a day remotely, Young said, such as resetting set-top boxes and
routers and testing lines.
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Peter Thonis, Verizon’s chief communications officer, acknowledged
there was “a little bit of a slowdown” in installing new services
like FiOS, but said replacement workers largely kept up on repair
work.
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The company said in its statement that it will “quickly address any
backlog in repairs and unfulfilled requests for
service.”
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While customers who will now get their FiOS services installed on
time may be winners, Verizon’s Thonis said neither the company nor
the workers could claim a victory.
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“We still have a lot of hard and difficult bargaining to do. None
of the major issues that were on the table before the strike, are
off the table,” he said.
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AP radio correspondent Julie Walker contributed to this
report.
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