NEW YORK, June 22, 2015 /PRNewswire/ -- Proposing a
solid wage increase up front, Verizon held its first negotiating
session today with representatives of the Communications Workers of
America and the International Brotherhood of Electrical Workers on
contracts covering approximately 38,000 Verizon East Wireline
Employees. The proposed wage increase is part of a competitive and
comprehensive three-year offer submitted by Verizon to address
issues that would help propel the company's Wireline unit in the
digital age.
"Our goal this contract cycle is simple: To work from day one
with union leaders on ways that will help our Wireline business
succeed, in an ever-changing communications arena, in the years to
come," said Robert Mudge, Verizon's
executive vice president for wireline operations. "We've put a
comprehensive offer on the table to encourage a substantive and
productive dialogue on the issues as early in the process as
possible. We are committed to negotiating meaningful changes."
The company's comprehensive offer includes several key
proposals:
- Wages -- Provided there is a signed agreement by
Aug. 1, upon ratification of a new
contract there would be a 2 percent wage increase effective
Aug. 2, 2015; a 2 percent increase
one year later; and a $1,000 lump sum
payment in the third year. The average annual salary and benefit
package for a Verizon associate in the East is $130,000. Verizon technicians in the
New York City/Long Island region currently have an average
total wage-and-benefit package worth in excess of $160,000 a year.
- Pensions -- Pension-eligible associates would be given a choice
of continuing to earn pension benefits under the defined benefit
plan with some limitations and forgoing the existing 401(k) company
match, or opting for the enhanced 401(k) plan currently offered to
management employees (which includes a bigger company match and a
profit-sharing contribution) with a frozen pension benefit. With
the exception of union-represented employees hired since
Oct. 28, 2012, employees under these
collective bargaining agreements currently have both a defined
benefit pension plan AND a 401(k) savings plan with a generous
company match, a benefit structure that's from another era.
- Healthcare -- Negotiating cost controls for the company's
healthcare plans is essential. The cost of medical coverage for an
East associate and one or more family members currently averages
nearly $20,000 a year. In one of the
company's East plans, the annual cost for this coverage is over
$23,000 annually. By contrast, the
national average for family healthcare coverage is about
$16,800. The company is proposing an
increase of $8.10 per week next year
for individual healthcare premiums. Other reasonable cost controls
are also important to help keep this Wireline business unit
competitive.
- Workforce management -- The company is seeking more
flexibility in terms of managing the workforce consistent with
customer demands.
"More than ever, we need contractual changes that position us to
compete with new and emerging technologies," said Tami Erwin, president of Verizon's Consumer and
Mass Business unit. "American consumers are communicating in new
and innovative ways. The way we work and respond to our customers
demands flexibility. Our contract rules and provisions need to be
updated to reflect those changes."
Mudge added: "No company anywhere has invested more in providing
fiber-optic networking all the way to customers' homes.
Transforming this part of the business will position us for future
growth. The reality, however, is that our cost structure has not
changed nearly fast enough to align with today's market realities
and customer needs."
Verizon's union-represented employees in the East work under 27
collective bargaining agreements in nine Eastern states and
Washington, D.C. The current
contracts expire Aug. 1, 2015.
Negotiations can be lengthy. The process lasted 15 months in
2011-12.
Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in
New York, is a global leader in
delivering broadband and other wireless and wireline communications
services to consumer, business, government and wholesale customers.
Verizon Wireless operates America's most reliable wireless network,
with 108.6 million retail connections nationwide. Verizon also
provides converged communications, information and entertainment
services over America's most advanced fiber-optic network, and
delivers integrated business solutions to customers worldwide. A
Dow 30 company with more than $127
billion in 2014 revenues, Verizon employs a diverse
workforce of 176,200. For more information, visit
www.verizon.com/news/.
VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive
speeches and biographies, media contacts and other information are
available at Verizon's online News Center at
www.verizon.com/news/. The news releases are
available through an RSS feed. To subscribe, visit
www.verizon.com/about/rss-feeds/.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/verizon-offers-raises-to-38000-employees-300102940.html
SOURCE Verizon Communications Inc.