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CWA Members Vote Verizon Strike Authorization if Contract Talks Falter

WASHINGTON – Members of the Communications Workers of America working at Verizon Communications voted overwhelmingly to give CWA leaders authorization to call a strike if they deem it necessary.

Negotiations currently are underway on behalf of 60,000 CWA members at Verizon whose collective bargaining agreement expires at midnight on August 2.

The negotiations cover Verizon's East Coast operations in 13 states stretching from Maine to Virginia, including the District of Columbia. Also in negotiations with Verizon on behalf of another 20,000 employees is the International Brotherhood of Electrical Workers. The two unions coordinate closely in the talks.

CWA reported that 92 percent of its Verizon members voted in favor of strike authorization in balloting conducted by 56 CWA local unions. For a strike to take place, the next step would be for CWA's 20-member executive board to authorize President Morton Bahr to set a strike date.

In announcing the results, Bahr stated: "Our goal is always to reach a peaceful settlement and to have a new agreement in hand by the contract expiration. Our negotiators will continue to work very hard to bargain a settlement that is fair and meets the needs both of our members and the company as well as the best interest of the customers we serve. If Verizon management approaches these talks in the same spirit, there is no reason that we can't meet that goal."

Background on the Talks

Bargaining Issues

Among CWA's key bargaining goals are strengthening employment security and gaining job opportunities and transfer rights at areas of the company where union members currently are excluded. These include several subsidiaries as well as new growth areas of Verizon, such as thousands of technical support jobs for high-speed Internet services, currently subcontracted.

The union also is seeking improvements in benefits and job conditions and a wage increase that reflects the employees' high rate of productivity. Revenues per employee at Verizon grew by nearly 15 percent in 2000-2002.

At the onset of bargaining, Verizon presented an enormous list of contract takeback demands that CWA charged are completely unjustified and unreasonable in light of the company's profitability and the workers' high productivity and contribution to the bottom line. Among these are demands that would drastically increase employees' health care costs, erase long-standing employment security protections and destroy thousands of jobs in our communities, and wipe out contract provisions negotiated in 2000 to relieve intense job stress among service reps and operators, such as requirements for advance notice of and limits on abusive levels of mandatory overtime.

A Profitable Industry Leader

As a backdrop to the talks, CWA points out that Verizon is leading and succeeding in the telecom sector despite a bad economy and the problems that have plagued other companies such as WorldCom, Global Crossing, Qwest, Lucent and its major director competitor, AT&T.

• Verizon by contrast is the biggest in market capitalization of the U.S. telecoms – and 3rd largest in the world -- also boasting the greatest revenues ($67 billion) and largest profits (over $8 billion in 2002 before one-time charges for accounting reforms and bad investments, leaving over $4 billion in net profits).

• In the competitive businesses that Verizon aggressively lobbied to compete in, it has emerged as the biggest wireless provider, 3rd largest long distance carrier in just a few years and the first Baby Bell to offer nationwide long distance, and is rapidly moving into DSL (high-speed Internet) and business data markets. It has announced plans to invest in deploying fiber optics to the home to take on cable Internet competition and exploit the market for a bundled package of communications services.

• The company rewards its executives as befits an industrial giant, not a beleaguered company in turmoil, as it has tried to paint itself for these talks. The top execs made $427 million in salaries, bonuses and stock options over the past six years. Last year, Verizon spent over $500 million for special stock deals for its management team.

CWA well understands changing conditions in the telecom industry, and points out that changing technologies and competitive markets are nothing new in this dynamic industry – CWA has worked with Verizon and the other telecoms for years to adapt to change and be successful. And we hold that just as Verizon speaks of the need business "flexibility," our members – who generate profits for the new ventures – also deserve flexibility to move into the growth job areas, rather than see their jobs slashed while the new jobs are fenced off from them.


Declining Service – Poor Long-term Strategy for Short-term Bump

Verizon customers and shareholders are silent partners with CWA at our bargaining table. Verizon's cuts in jobs and network investment – a 40 percent decline the last two years – are way out of proportion to the drop-off of just 4 percent in local phone lines. The resulting poor service caused legislators and regulators in New York to sharply crack down on Verizon, and the FCC and regulators in other states also have voiced alarm.

Good news for customers came recently with an arbitrator's decision forcing Verizon to rehire 2,300 workers it laid off last year in violation of CWA's job security protections bargained 9 years ago.

CWA contends that to compete in an increasingly competitive telecom field, Verizon needs to focus on quality service, which means retaining skilled workers – not cutting costs short-term for a quick profits bump at the expense of the future. Verizon needs to retain its customer base to market the bundle of wireless, Internet, long distance and, eventually, cable video offerings.

CWA members are stakeholders in Verizon for the long-term, committed to the company's success. The union's and employees' vision for Verizon is one based on success by growing the business and generating revenues through innovation and investment in quality customer service – not just propping up profits by hunkering down and cutting costs.

We are eager to partner with Verizon in achieving that vision if the company will acknowledge the value of its skilled and dedicated front-line workforce in a genuine, 2-way partnership.


CWA represents 700,000 workers in telecommunications, IT, news media, cable, electronics manufacturing, airline customer service, education, health care and the public sector.





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