VZ Verizon Communications Inc

By Ryan Knutson 

Verizon Communications Inc. and its labor unions have reached an agreement in principle that would end a weekslong labor strike, the U.S. Labor Secretary Thomas Perez said.

Recent discussions between the two sides have resulted in a four-year contract that would resolve the dispute, Mr. Perez announced in a news release. The two sides are working to put the agreement in writing, and then it will be submitted to union members for ratification.

"I expect that workers will be back on the job next week," Mr. Perez said.

The strike, which began April 13, involves nearly 40,000 employees, primarily in Verizon's landline division.

Terms of the new labor accord weren't disclosed. Verizon officials and union representatives had no immediate comment.

The striking employees, who work mostly along the East Coast, had been working without a contract since August. Represented by the Communications Workers of America and the International Brotherhood of Electrical Workers, they went on a two-week strike the last time they negotiated a contract, in 2011.

A sticky part of the negotiations revolved around work rules. Verizon wanted more flexibility to relocate workers and redirect call-center traffic, while the unions were pushing for job-security provisions. The carrier was also looking to trim retirement and health-care costs.

Verizon has been using nonunionized workers to fill in over the course of the strike, allowing the carrier to keep up on maintenance requests. Verizon Chief Executive Lowell McAdam, however, warned earlier this week that it was falling behind on new Internet and TV installations and hinted that the strike may weigh on its second quarter results.

Write to Ryan Knutson at ryan.knutson@wsj.com

(END) Dow Jones Newswires

May 27, 2016 14:15 ET (18:15 GMT)

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