NEW YORK, May 30, 2016 /PRNewswire/ -- After nearly a
year of intensive negotiations, Verizon Communications Inc.
announced today that it has reached tentative agreements with the
Communications Workers of America (CWA) and the International
Brotherhood of Electrical Workers (IBEW) on new contracts for about
36,000 employees who work primarily for the company's network
operations and consumer and mass business
units.
"The tentative agreements reached today are good for our
employees, good for our customers and will be good for our
business," said Marc Reed, Verizon's
chief administrative officer. "The new contracts will help
ensure that Verizon employees continue to receive solid wages and
excellent healthcare and retirement benefits. They also
include key changes sought by the company to better position our
wireline business for success in the digital world."
The company will achieve cost savings and cost avoidance through
healthcare plan design changes, adopting 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 the company the
ability to offer special buyout incentives to employees.
"This will allow our business to be more flexible and
competitive and will help achieve greater efficiencies as we
operate in the ever changing and dynamic digital marketplace," said
Reed.
Employees covered by these contracts will receive a wage
increase of 10.5% over the term of the contract, which would expire
on August 3, 2019. The first
increase would come after ratification.
In addition, as part of the company's goal to accelerate growth
in wireline broadband, Verizon announced that it will hire
additional associates over the term of the contract. Looking
forward, the company is focused on growth opportunities and serving
customers in areas that welcome and encourage new business.
"We're especially proud of our commitment to 1,400 new hires –
high quality and well-paying American jobs," said Reed.
During the nearly seven week strike, Verizon deployed thousands
of non-union employees and contractors to fill-in for those
employees out on strike. From the beginning, the company's
main focus was ensuring that millions of existing Verizon customers
were receiving the services that they pay for and rely
upon.
"We are incredibly proud of and grateful for the way our
employees on special assignment stepped up to the plate to ensure
that our customers were able to connect wherever and whenever they
needed," said Reed. "We know strikes are challenging for
employees on both sides of the picket line. I'm pleased that
all of our employees will be back at their regular jobs this week,
working hard to serve our customers."
The tentative agreements were achieved following negotiations
conducted under the auspices of U.S. Labor Secretary Thomas Perez and facilitated by the Director of
the Federal Mediation and Conciliation Service, Allison Beck.
The unions will submit the agreements to their members for a
ratification vote. If approved, the agreements will run
through August 3, 2019.
Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in
New York City, generated nearly
$132 billion in 2015 revenues.
Verizon operates America's most reliable wireless network, with
112.6 million retail connections nationwide. The company also
provides communications and entertainment services over America's
most advanced fiber-optic network, and delivers integrated business
solutions to customers worldwide.
VERIZON'S ONLINE NEWS CENTER: News releases, feature stories,
executive biographies and media contacts are available at Verizon's
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www.verizon.com/about/rss-feeds/.
Media contact:
Rich
Young
908-559-3477
richard.j.young@verizon.com
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SOURCE Verizon