A tentative deal between telecommunications giant Verizon and leaders of striking unions includes 1,400 new jobs and pay raises topping 10 percent, the company and unions representing almost 40,000 workers said on Monday.
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“The addition of new, middle-class jobs at Verizon is a huge win not just for striking workers, but for our communities and our country as a whole”, said CWA President Chris Shelton in a statement.
A previous labor contract offer from Verizon to the unions called for closure of the Glens Falls operation, along with three other smaller call centers.
Verizon will add 1,300 new East Coast jobs, withdraw outsourcing plans, provide a 10.9 percent raise over four years, and make pensions and health-care concessions, among other things.
Local Verizon employees are expected to return to work Wednesday after a tentative contract agreement was reached. Last time they went on a strike it was in April 2011 when they walked off their jobs for two straight weeks.
Industry analysts expect this negligence to have a negative impact on Verizon’s wireless segment business. By extending contracts to Verizon Wireless staff, the unions are increasing their relevance to the company’s future, surely to the chagrin of Verizon executives.
This video was licensed from Grab Networks. Verizon said it had high health care costs for its unionized workers, a group that has shrunk as Verizon sold off large chunks of its wireline unit and focused on its mobile business, which was not unionized. Verizon brought in thousands of temporary workers. Once the contract is ratified, Verizon plans to hire another 1,400 union workers. Verizon sought to significantly lower those numbers. Union members will vote on the tentative contract by 17 June.
According to CNBC, the International Brotherhood of Electrical Workers (IBEW) did not comment immediately on the tentative agreements.
A call center in Philadelphia, Pennsylvania, 2003. The newly negotiated contract is due in four years and details on it were disclosed Monday. The company also agreed to reduce the number of call center closings.
Some workers said the contract talks marked a successful effort, especially in reversing a trend of the increased use of contract workers and potential pension cuts. Now, the representative in New Jersey can answer the call directly more often.
Under the tentative new contracts, a similar percentage of calls must be answered by a unionised worker somewhere in Verizon’s wireline footprint, which runs from Virginia to MA, rather than the particular state from which the call originates.
Some labor experts argued that these victories could reverberate through the broader economy.
“Because we fought together as a union, my kids will be able to see me at night”. About 1,400 new jobs are also included in the deal.
Verizon employees had been working for almost 10 months without a contract when they went on strike April 13 over outsourcing and the hiring of more nonunion contractors and employees.
“CWA appreciates the persistence and dedication of Secretary Perez, Federal Mediation and Conciliation Service Director Allison Beck and their entire teams”.
CWA says it faced intimidation by the company throughout the strike. But, he said, Verizon may have been vulnerable because so few of its replacement workers, typically managers, had experience with installations.
Following the strike’s announcement, customers suffered, as many incidences of delays in getting services of the wireline products including Fios Internet, television, and telephone were reported. Instead, the unions and company are going to work with an outside consultant.
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