April 26, 2024

Verizon Workers Plan to End Strike, Agreeing to Revive Talks Toward a Contract

Beginning with the evening shift on Monday, the 45,000 striking workers will return to their jobs, posts that they left on Aug. 7 in the nation’s largest strike since 2007, when workers at General Motors held a two-day strike.

Union leaders are ending the walkout, they said, because Verizon management had finally agreed to engage in serious bargaining on the contentious issues after the company had originally insisted on negotiating more than 100 proposals for concessions.

Officials from the two unions that called the strike — the Communications Workers of America and the International Brotherhood of Electrical Workers — made the announcement on Saturday.

The strike was a painful one, forcing thousands of workers and their families to live without paychecks for two weeks and hurting Verizon’s image, as many customers complained of major delays for repairs and installations. The walkout involved workers from Massachusetts to Virginia in Verizon’s traditional landline operations and in its new FiOS Internet and cable operations, but not workers at Verizon Wireless, which is largely nonunion.

Union officials said they had originally called the strike because they felt they were not being taken seriously and because Verizon was insisting on so many and such sweeping concessions. Verizon was hardly budging from its original position, the unions said, another point of contention. Verizon is pushing for, among other things, a pension freeze for current workers, fewer sick days, an end to all job security provisions, far larger employee contributions toward health coverage, and freedom to do as much outsourcing as it wants.

Larry Cohen, the communications workers’ president, said in an interview Saturday that under an agreement reached Friday, the bargaining was being restructured to focus on major issues, with top Verizon officials indicating that there would be real progress in bargaining. Mr. Cohen said another factor that helped persuade the unions to return to work was that Verizon had agreed to keep the expired contract in force until a settlement is reached.

“Everybody knew we faced a long list of management demands and that’s why there was a strike, and we would go back into bargaining when the talks could be meaningful,” Mr. Cohen said. “We don’t consider this a victory in any way. We consider it progress toward a good process at Verizon.”

In a statement issued on Saturday, Verizon said the parties had agreed on a process “for moving forward to negotiate the major issues regarding benefits, cost structure, work flexibility and job security.”

Marc C. Reed, Verizon’s executive vice president for human resources, said Verizon believed that ending the strike “is in the best interest of our customers and our employees.”

“The company hasn’t conceded any of its proposals,” Mr. Reed said in an interview. “At the end of the day we still have health care on the table. We still have proposals on job security and moving work on the table.”

Mr. Reed said the unions had ended the strike because of “the pressure of having people not working in this tough economy.” He added, “This is a situation where the purpose of the strike may not have any need.”

Mr. Cohen acknowledged that the bargaining ahead might still be lengthy. He said Verizon initially seemed so dismissive of the two unions’ position and so unwilling to budge from its original stance that union negotiators felt the company was seeking in effect to wipe out the unions’ bargaining rights.

“The unions have been working with Verizon to restructure bargaining in a way that represents progress for everyone,” he said. “We believe that Verizon management shares the goal of meaningful bargaining.”

Jim Spellane, chief spokesman for the electrical workers’ union, said the unions went on strike to get management’s attention and to show that the workers could not be pushed around.

“The workers felt very strongly that their whole standard of living was under attack, that everything we’ve worked for for decades was under threat and wasn’t being taken seriously,” Mr. Spellane said. “They felt backed into a corner and so the strike was called.”

Verizon officials have repeatedly said they needed major concessions from the landline division employees to keep that business competitive and to increase its lagging profitability. The company said its traditional landline business had declines in profits and in its customer base, even though that division was slowly rebounding thanks to growth of Verizon’s FiOS fiber-optic business.

The two unions condemned Verizon’s push for large-scale concessions, saying the demands were inappropriate because the company’s overall profitability had been strong, totaling $22 billion over the last four years.

While many C.W.A. members voiced relief that they were returning to work, others posted complaints that their union had knuckled under by ending the walkout without a settlement and with Verizon’s concession demands remaining on the table.

Throughout the strike, a big question that union leaders faced was whether Verizon had proposed scores of concessions in the hope of narrowing them down to win just two or three major ones, or whether it was intent on winning dozens of concessions and seriously weakening the two unions.

More than any other union leader in the country, Mr. Cohen has sought to promote and preserve bargaining rights, and he often said that Verizon’s truculent approach to negotiations resembled those of state governors who wanted to abolish collective bargaining.

Article source: http://feeds.nytimes.com/click.phdo?i=b88c703a8d594069b6b9fa846e32fa95

Customers Feel Some Ripples From the Verizon Strike

Verizon acknowledges “minor” disruptions since the strike began on Aug. 7. But some customers of its landline telephone, Internet and cable television service are reporting significant delays getting current lines repaired and new ones installed.

Craig Schiffer, chief executive of a boutique investment bank in Midtown Manhattan, said his firm’s telephone service had been down for nine days, and he could not get an estimate from Verizon for when the phones would be working again — a big problem for a business that relies heavily on phone calls with clients.

Joey Kreger, a recent college graduate moving from Illinois to Morristown, N.J., said he was stunned when he ordered Verizon’s FiOS television and Internet service for his new apartment — and the company wrote back that it could install the service on Dec. 30, more than four months from now.

Competitors like Time Warner Cable and Cablevision have mobilized to take advantage of Verizon’s problems.

Time Warner, which operates in some of the East Coast markets affected by the Verizon strike, is running ads promising speedy service, and it has increased the number of field technicians so that it can do cable installations within 48 hours.

“When folks are in a time when they might not be able to get service, we are emphasizing not just the price but our high level of service,” said Todd Townsend, chief marketing officer for Time Warner’s eastern region.

Officials at the two unions on strike — the Communications Workers of America and the International Brotherhood of Electrical Workers — say they are certain that the walkout is causing delays in repairs and installations, but they acknowledge they do not know by how much.

“Historically we know that you can’t pull out of any system 45,000 people who are the hands and minds of the company’s product and expect to provide the same level of service as before,” said George Kohl, special assistant to the president of the C.W.A. “The managers who are replacing them don’t perform these functions nearly as efficiently.”

Verizon said that problems for existing customers had been minimal.

“We’re seeing some minor delays on a few repairs and installations,” said Christopher M. Creager, Verizon’s senior vice president for consumer and mass business markets. “The vast majority of our customers are not seeing any impact.”

Verizon officials acknowledge, however, that they decided not to take any new orders for the first two weeks of the strike so they could focus on serving their current customers.

“We are seeing some delays on the installation side if it’s a brand-new installation that requires technicians to come out,” Mr. Creager said. He explained that it was a mistake to tell Mr. Kreger that his installation date would be Dec. 30, saying the date would be well before that.

That has upset potential customers like Dylan Marsh, who are complaining about delays in obtaining FiOS service, which offers Internet, cable TV and phone service over high-speed fiber optic lines and competes with the services sold by cable companies like Time Warner and Comcast.

Mr. Marsh, who just graduated from Buffalo State College with a degree in urban planning, wanted to order Verizon’s FiOS Internet and television services for his new apartment on West 49th Street in Manhattan.

“They let me go through the whole signup and then at the end they said, ‘There are no installation dates available. Someone will contact you,’ ” Mr. Marsh said. “That was probably a week ago. They were trying to make it seem like everything is O.K., like the service is there but it’s not. I thought it would be a couple of weeks, but it might end up being a couple of months. I decided to go with Time Warner instead.”

Verizon said the company’s efforts to keep up had also been set back by numerous incidents of sabotage and by the huge rainstorm that struck the East Coast last weekend.

Verizon is pushing the unions to accept far-reaching concessions, including a pension freeze and fewer sick days, and asking that workers contribute far more toward their health coverage.

Negotiations between the two sides are continuing, but at the same time, both are preparing for a protracted strike.

In a recent move, Verizon has sought to step up pressure on the strikers by informing them that the company will cut off their medical, dental and optical benefits on Aug. 31.

Since the strike began, union officials have been eager to make the case that the company’s operations were being badly hurt. Meanwhile, the company has sought to bolster its position by asserting that the strike is having little impact on service.

“We have been preparing for this for months, and when the strike took place, we deployed thousands of managers from across the country to be able to handle customer service requests,” Mr. Creager said. “We made a commitment to take care of the customers we have.”

Mr. Schiffer, the boutique bank’s chief executive, said most phones at his nine-person firm, Sevara Capital Markets, had not been working since Aug. 9.

“This is really affecting our business,” he said. “Clients have been telling us they can’t get through.”

Asked about the repair delays faced by Sevara, Mr. Creager of Verizon said, “That is not typical of the vast majority of our customers.”

Richard Young, a Verizon spokesman, said the company had received hundreds of supportive e-mails from customers.

In one e-mail shared by the company, John Ness, a councilman in Townsend, Del., wrote last Sunday to thank two field technicians who repaired his phone, Internet and cable service several days before a scheduled appointment.

Article source: http://feeds.nytimes.com/click.phdo?i=83cd6342a2f32bfd613c5ebfa5255419