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CWA Announces Path-Blazing Settlement Ending Verizon Strike by 37,000 Workers: 'This Agreement Secur

WASHINGTON, D.C. -- The Communications Workers of America today announced a settlement with Verizon Communications at the mid-Atlantic bargaining table, halting the strike by 37,000 workers in New Jersey, Pennsylvania, Delaware, Maryland, West Virginia, Virginia and Washington, D.C. The deal brings to a final conclusion a strike that began August 6 by 87,000 telephone workers from Maine to Virginia.

The pace-setting contract package substantially curbs forced overtime for customer service employees and technicians -- a key issue in the walkout -- and achieves the union's major job security goals, including sharp limits on the transfer of work as a result of the GTE-Bell Atlantic merger that created Verizon.

Another breakthrough provision opens the door to unionization for thousands of Verizon Wireless workers in the old Bell Atlantic portion of Verizon by extending cardcheck recognition and neutrality rights for gaining representation.

"This settlement secures the future for our members at this company and it also helps sharpen Verizon's competitive edge," said CWA President Morton Bahr. "The men and women we represent are the human face of Verizon, the people who deal directly with the customers every day. This agreement assures Verizon the advantage of a stable workforce of the most highly skilled and experienced people, and in many ways it gives our members the ability to do their jobs even better."

The agreement cuts the number of hours that customer service employees can be forced to work overtime from 15 hours per week at present to only 7- « hours effective immediately. And, addressing worker complaints of last-minute overtime assignments, a particular burden for parents, it provides at least 2- « hours' notice if overtime work is required.

For technicians, operators and others who currently can be forced to work up to 15 overtime hours a week, mandatory overtime will be capped at 10 hours a week immediately, dropping to 8 hours in January 2001.

Needlessly stressful conditions for customer service reps and operators were among other major CWA issues. The settlement calls for customer service employees to receive 30 minutes of off-line time per shift in which workers can be off the phones to process customer orders and requests. And it includes provisions to relieve the intensity of monitoring for both operators and service reps.

The compensation package provides general wage hikes of 12 percent over the three years: 4 percent immediately, with an additional 4 percent for customer service representatives; 3 percent in August of 2001, and 5 percent in August of 2002. With compounding, base wages will increase a total of 12.5 percent.

A bilingual differential of 3 « percent is extended to all workers required to use a second language.

A cost-of-living escalator provision was agreed to, protecting wages in the event that future inflation levels top 9 percent over a two-year period.

Other economic gains include a corporate profit sharing plan with maximum payout of $1,000 a year, a grant of 100 Verizon stock options to each full time employee and 50 options for part-timers, and a team-based incentive pay plan of up to 10 percent of wages. Also, the employer match in the 401 (k) plan was increased from 80 to 82 percent.

Pensions will be increased by 14 percent over the contract term: 5 percent immediately, 5 percent the second year and 4 percent the third. In addition, operators in New Jersey, Delaware and Washington, D.C. will move to a higher pension band for accruing benefits.

The agreement on restricting the movement of work limits such movement to no more than seven-tenths of one percent per year in defined bargaining units. In addition, Verizon agreed to guarantee no layoffs, no downgrades, and no forced transfer of workers.

Among other job security gains, the pact reduces the amount of work that is being subcontracted and assures that union members will perform all installation and maintenance work involving high-speed digital access lines (DSL) to the Internet. The agreement also restores substantial amounts of DSL and other customer service work that had been contracted out.

Also, maintenance work that had been performed by a lower wage subsidiary company (BACCSI) was returned to the bargaining units.

At Verizon Wireless, the company agreed to allow employees to conduct union organizing drives in a neutral atmosphere, free of anti-union coercion by managers, and to recognize the union when at least 55 percent of employees in a work location have signed cards showing they want representation. The agreement covers non-management employees including those in the Wireless stores.

The settlement also provides significant improvements in family, health and dental care, including:

Coverage for reproductive and fertility treatment, up to a lifetime benefit of $20,000.



Adoption reimbursement increased to $10,000 from $5,000.



Extended health coverage for spouses of active and retired workers.



Coverage for obesity treatments.



Hearing aid reimbursement up to $1,000 every 24 months.



Discounted laser eye surgery.



Increased reimbursements for dental care and orthodontia.



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