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Verizon Reaches an Agreement with Unions to End Strike

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As per the U.S. Labor Department, Verizon and its two unions extended an agreement on a new labor contract, flagging about 39,000 landline employees to resume work after a long strike of 44 days.
As per a statement passed by Labor Secretary Thomas Perez, the four-year deal is going to be put into writing and the union members will start working next week. It will be the first time that the agreement will be expanded to 165 Verizon wireless employees.
Union leaders are thankful to Perez who brought Verizon Chief Executive Officer Lowell McAdam and two union executives to Washington for discussion of alternatives to resolve the issue.
“This proves that when we stand together we can raise up working families, improve our communities and protect the American middle class,” said CWA President Chris Shelton.
IBEW President Lonnie Stephenson shared that the provisional contract is a significant advancement in bringing the six-week strike to an end and keep “good Verizon jobs in America.”
Chief Administrative Officer Marc Reed said in a statement “Verizon is very pleased with this ‘agreement in principle.” “We look forward to having all of our employees soon back at work in their regular positions and doing what they do best — serving our customers.”
The shares of Verizon grew less than 1 percent to $50.62 at the close Friday in New York.
Roger Entner, an analyst with Recon Analytics LLC said “In the end, it looks like everyone wins.”
“The employees will get an increase over four years, which is a year longer than originally proposed. And Verizon can get all its employees back to work, including those that had been filling in on the landline side.”
To fulfil business requirements during the strike, Verizon had dispatched non-union workers and managers to call centers and field-service assignments. As per Chief Financial Officer Fran Shammo, the strike has affected the company’s landline business. After-effects of the strike might result in non-inclusion of FiOS TV or broadband customers in the quarter.
In addition to FiOS business, the company has been casting off union-heavy operations in three states since last month.
“This might be the last big strike for Verizon because wireline will have less and less leverage in an increasingly wireless business,” said Entner.

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Hold Hearings on Verizon Landline Service Problems, Lawmaker tells BPU

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verizonIn response to Verizon’s landline service problems, Senator Jeff Van Drew has requested the Board of Public Utilities to hold a hearing in South Jersey to hear directly from customers who are disturbed with the poor service.

“These problems are not only an inconvenience, they are causing public safety and quality of life issues and require action,” Van Drew wrote in a letter sent to BPU President Richard Mroz. The senator also is drafting legislation that would permit the Legislature to participate in legal action taken by Cumberland County and filed with the BPU regarding problems with Verizon’s service.

“Municipalities in Cumberland and Atlantic counties have reported serious problems with landline telephone service that has proven unreliable and created major telecommunications issues for residents, business owners and emergency personnel. The failure of Verizon to properly maintain its copper lines in this region of the state has led to telephone interference and, at times, completely inoperable landline and Internet service,” wrote Senator Van Drew.

He further added, “The inability of a resident to reach emergency personnel by phone or for emergency officials to communicate effectively could literally mean the difference between left and death. For students, in adequate telephone and Internet service could mean the inability to access educational materials and, for a business owner, it could result in lost production and revenue.”

While Sen. Jeff Van Drew, D-1st Dist., the main focus is on Cumberland and Atlantic countries — the areas he represents — the problems with Verizon service extend into Salem and Gloucester counties, officials there say. “I respectfully request that BPU hold a public hearing in the First Legislative District to hear directly from residents, emergency personnel and public officials about the communications problems they are experiencing. I would also request that Verizon participate,” Van Drew wrote to Mroz.