Verizon Strike: Epic Labor Standoff Ends, But What About The Future?

Catch up on the full history of the Verizon worker strike of 2016 here.

For Verizon workers who waged one of the larger strikes in recent memory, the message it sent was as important as the concessions it gained from the company: Some things are worth fighting for, and fair treatment on the job is one of them.

The assessment comes about a week after 36,500 members of the Communications Workers of America (CWA) and the International Brotherhood of Electrical Engineers (IBEW) overwhelmingly approved four-year work agreements with Verizon, which brought an end to a nearly two-month labor standoff.

The new contracts went into effect immediately after ratification, Verizon reported on its website.

On Tuesday, CWA representative Robert Master told Patch that although everyone doesn't always get everything they want in collective bargaining, union members felt that the strike succeeded in its main mission: to prove that workers don't have to just "roll over" when it comes to their livelihoods.

"I think that what our strike demonstrated is that when working people stick together and stand up against a big corporation, they have a lot better chance at winning a future that’s good for them and their families," Master said.

"We're not strike happy... We felt our backs were against the wall," Master emphasized. "But at the end of the day I think that our members did something important for themselves and for the country. They stood up for themselves. And I think that they hope other working people will learn from their experience."

When the new contracts expire in four years, the unions are likely primed to fight for the same set of issues again, Master told Patch.

"At the end of the day we're trying to preserve good jobs in this country and for our members, and I don’t see that changing substantially," the union leader asserted. "We will continue to fight for job security and for the company to offer Fios to every customer that wants it. But hopefully, Verizon will see the wisdom of trying to work with us instead of against us, and we can have a future in which both sides benefit from the success of the company."

NEW CONTRACTS: FEDS, VERIZON AND UNIONS REACT

“Because of your sacrifice, there are now 13 million more Americans who can punch their ticket to the middle class,” U.S. Department of Labor Secretary Thomas Perez told CWA workers during a recent union meeting. “Collective bargaining is the most important pillar of working families.”

“We’re pleased that our employees ratified these new agreements,” said Marc Reed, Verizon’s chief administrative officer. “The terms are good for our employees, good for our customers and good for our business. The company’s key objectives for this round of bargaining were in the areas of healthcare, post-retirement costs and workforce flexibility. These agreements achieve all of those objectives. The company will realize cost savings and cost avoidance through healthcare plan design changes, increased healthcare contributions, Medicare Advantage plans for our retirees, maintaining limits on post-retirement healthcare costs and freezing the mortality table for lump sum pensions using the GATT rate.”

“In addition, the agreements allow for greater flexibility in call sharing to better serve customers, and give us the ability to offer special buyout incentives to associates,” Reed added. “Under these contracts, our union-represented employees continue to receive competitive wages and excellent healthcare and retirement benefits.”

“The ratification of these hard-won contracts cements an incredible victory for the nearly 40,000 courageous workers who put everything on the line to protect the good jobs for their families and for all American families,” said Dennis Trainor, Vice President, CWA District 1.

“It was a tough strike, but this contract, which secures good jobs in our communities and preserve workers’ standard of living shows what can happen when we stand together," said Ed Mooney, vice president, CWA District 2-13.

“Because of the sacrifices we made and our unity on the picket line, we came out stronger than we went in,” union leaders declared on Facebook. “We sent a clear message that working people coming together to fight for what is right will not be defeated.”

TERMS OF AGREEMENT

According to union leaders, highlights from the contract include:

• A 10.9 percent raise over the next 4 years with compounded interest, including 3 percent upon ratification and 2.5 percent on each anniversary of the contract
• A $1,250 signing bonus in the Mid-Atlantic and a $1,000 signing bonus plus $250 healthcare reimbursement account in the Northeast, and a minimum of $700 in corporate profit sharing payments in each of the next four years
• The first contract for nearly 70 Verizon Wireless retail store workers in Brooklyn, NY, and Everett, MA
• A “guarantee” that an increased percentage of customer service work will be handled by unionized workers (Verizon will add 1,300 call center jobs, 850 in the Mid-Atlantic region and 450 in the Northeast)
• Existing job security language will be preserved, as will existing language on transfer and seniority protections for retirement incentives
• All of the company’s proposals on forced interstate transfers of technicians were withdrawn
• All proposed reductions of pensions were withdrawn by the company, and there will be three, 1 percent increases in the defined benefit pensions over the life of the agreement
• Proposed cuts in accident and disability benefits were withdrawn, and the parties have agreed to changes to active and retiree healthcare that generate savings to the company while protecting excellent plan designs for medical care

Read more about the contract terms here.

WIRELESS WORKERS

Most of the striking workers were involved in Verizon's wireline and landline operations. However, the CWA made several important footholds in the company's largely nonunion wireless division, representatives said.

For example, striking Verizon Wireless technicians ratified a separate agreement that covers about 100 VZW technicians in New York, union leaders said.

That contract includes gains such as a 10.9 percent wage increase over the four-year term, a $1,250 signing bonus, new paid parent leave benefits and improvements in stand-by pay, union leaders stated.

Striking Verizon Wireless retail store workers in Brooklyn, New York, and Everett, Massachusetts, also approved a separate agreement that marks their “first-ever contract,” union leaders stated.

That contract makes major improvements in job security, provides a first-ever grievance and arbitration procedure, gives protections against arbitrary discipline and firing, and places restrictions on the company’s ability to subcontract work.

In addition, $2,000 of performance-based pay now will be guaranteed as part of the workers’ base pay, and workers will have the right to swap schedules, union leaders said.

Workers at Verizon Connected Solutions also ratified a separate four-year agreement that provides for the same benefit improvements as the core wireline agreement, union leaders reported.

This “big gain for workers” maintains a key job title that ensures that these employees will receive wage raises according to the negotiated pay scale, union leaders said.

However, the fight to unionize the company's wireless employees may just be beginning.

"We will continue to be concerned about whether or not more workers at Verizon Wireless are able to get any representation," Master told Patch on Tuesday.

Photo via Stand Up To Verizon, Facebook