Thomson ReutersA “Now Hiring” sign is posted on a Verizon store in Manhattan in New York (Reuters) – Verizon Communications Inc has agreed to add 1,300 new jobs on the U.S. East Coast and provide 10.9 percent in pay raises over four years under a tentative deal between the company and unions, the Communications Workers of America said on Monday.
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The International Brotherhood of Electrical Workers union, which represents about 10,000 of the striking workers, did not immediately respond to a request for comment. They’d reached an agreement in principle Friday but hadn’t released details or a date for the workers’ return from one of the largest strikes in the United States in recent years.
Facing years of declines in the landline unit as more people opt for only wireless service, Verizon pushed to have union workers agree to temporary job relocations. Since the strike started the workers picketed outside Verizon stores and a handful of conferences attended by company executives. The unions, which had been working without a contract since August 1, wanted to limit those transfers of workers to other regions, protect jobs from being moved offshore and preserve pension increases.
The 44-day strike, which began April 13, affected 39,000 workers nationwide.
The new labor deal is the first since Verizon took full control of Verizon Wireless and agreed to buy AOL, two deals worth nearly $135 billion that point toward a wireless-centric future. Verizon said it had trained managers and thousands of non-union employees over the past year to ensure that service would not be disrupted. The deal also includes the addition of 1,300 new call-center jobs.
Proposed company cuts in accident and disability benefits were withdrawn, but both parties have agreed to changes to active and retiree healthcare, the CWA said.
Verizon and the two striking unions were in contract discussions with the help of the U.S. Department of Labor.
The labor standoff pushed the number of striking USA workers to the highest in more than four years and could depress the May job numbers slated for release next week, data from the Labor Department showed.
Verizon has shifted its focus in recent years to mobile video and advertising, while scaling back its Fios TV and Internet service. To tap new revenue, it is boosting its advertising-supported internet business and acquired AOL for $4.4 billion.
The execs can also breathe a sigh of relief now as the labor dispute that has taken a toll on their business is about to come to an end.
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Verizon Chief Executive Officer Lowell McAdam said last week the strike could hurt second-quarter results.
