Verizon, Unions Reach 'Agreement in Principle' -- 2nd Update
May 27 2016 - 5:12PM
Dow Jones News
By Ryan Knutson
Verizon Communications Inc. and its labor unions have reached an
agreement in principle that would end a weekslong labor strike.
The two sides agreed to terms for a new four-year contract
through a mediation led by U.S. Labor Secretary Thomas Perez. The
two sides will now put an agreement in writing that will then 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. The striking
employees, who work mostly along the East Coast, had been working
without a contract since August. Terms of the new accord weren't
disclosed.
Verizon Chief Administrative Officer Mark Reed said it also
reached an agreement on contracts for about 165 wireless employees,
who had been working without a contract for several years.
"We look forward to having all of our employees soon back at
work in their regular positions," Mr. Reed said in a statement.
The Communications Workers of America said they would take down
its pickets following Verizon's agreement to add new union jobs on
the East Coast. And the International Brotherhood of Electrical
Workers President Lonnie R. Stephenson said its members look
forward to returning to work.
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.
Shares of the company, up 9.5% this year, rose 0.9% in Friday
trading to $50.61.
Write to Ryan Knutson at ryan.knutson@wsj.com
(END) Dow Jones Newswires
May 27, 2016 16:57 ET (20:57 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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