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Verizon in Struggle with Striking Workers
Inter Press Service News Agency / News Analysis
Published: Friday 12 August 2011
For the workers, this strike is a matter of basic civil rights, and they do not appear to be backing down.
As unemployed young rioters rage across London and frustrated homeless people in Holon burn tires on the streets of Israel, the great capitalist democracy across the Atlantic is also feeling repercussions from its own floundering economy.
On Monday, 45,000 workers represented by the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) staged a coordinated walkout across a range of northeast and mid-Atlantic states, from Maine to Virginia.
The workers are disgruntled employees of Verizon Communications, which, according to its website, is "America's largest and most reliable wireless voice and 3G communication network".
However, the company's reliability was compromised at midnight on Saturday, Aug. 6, when CWA's contract with Verizon, covering 45,000 CWA and IBEW members, expired with no decision reached on the proposed one billion dollars in concessions.
Infuriated that the company is requesting 20,000 dollars in givebacks from every employee, Verizon workers are refusing to back down.
"We're fighting for our middle-class lives here," Michael Harris, president of CWA local 2336 in Washington, told IPS.
"If Verizon can afford to pay their executives a lot of money, they can maintain and treat us a little better. We work [extremely] hard for this company and we deserve [better] than this."
According to the records, Verizon's CEO Ivan Seidenberg took home 81 million dollars in total compensation over the last four years, including huge benefits for himself and his family, effectively pocketing a wage 300 times the pay of the average worker. Overall, Verizon's top five executives earned 258 million dollars in the last half decade.
Meanwhile, middle-income active and retired workers are being asked to give up thousands of dollars to help the company stay "afloat".
"They are trying to force active and retired workers to pay thousands of dollars for their medical care, eliminate benefits for injured workers, slash paid sick leave, eliminate all job security protections, and make it easier to send our work to overseas contractors in places like India and the Philippines," according to a CWA press release Tuesday.
Another demand on Verizon's negotiating table is replacing the current high-quality health care plan with a high-deductible plan requiring up to 6,800 dollars in additional costs borne by workers.
Verizon says that these cutbacks are necessary to keep the ailing company on its feet.
According to a letter penned by Verizon CEO Lowell McAdam on Sunday night and distributed to all U.S.-based wireline and corporate management, "It's no secret that the Wireline business has experienced a ten-year decline in our customer base and in profitability…we have arrived at the point where we must make additional hard decisions to address customer needs and the overall operating costs of the business."
"We're asking our union-represented employees to help us on a variety of issues that could streamline our processes and further reduce our Wireline cost structure while keeping their overall compensation and benefits among the best in corporate America," McAdam wrote, adding that unless a deal was struck soon the results would be "catastrophic".
However, Steve Early, author of "Civil Wars in U.S. Labor" reported this week, "Like General Electric, which just won givebacks from CWA and other unions, Verizon "isn't under any financial stress," according to The Wall Street Journal. The company reported 10.2 billion dollars in profits in 2010 and its net income for the first half of this year was 6.9 billion dollars."
The paper also noted that Verizon's wireline business, which includes home lines and business telephones, experienced revenue slumps of 2.9 percent in 2010 and 1.2 percent in the first six months of 2011 – losses which management is citing as the impetus to demand huge givebacks.
But the 70 striking workers from Verizon's wireless arm say this is simply an excuse. These employees, the only unionized workers at the wireless operation, insist that the company line of "plummeting profits" is merely a guise for an overall disregard for workers' collective bargaining power.
"Verizon can't tell us they're losing customers, they can't tell us they're not one of the most profitable companies in America," said Daniel Gutierrez, a CWA Local 1101 member helping to lead negotiations on the wireless agreement.
The Wall Street Journal reported that Verizon Wireless "boosted its subscriber rolls by 2.2 million in the second quarter, double that of rival AT&T Inc.".
"They want us to go to merit-based pay" rather than wage increases tied to seniority, said Gutierrez, 41, a technician and 16-year veteran of the company, saying that accepting the demand would effectively wipe out decades of hard-won gains by the unions.
"This Verizon work stoppage is the sixth strike in the last 28 years by some of the telephone workers involved," Early said. "They've been in the forefront of resisting healthcare cost shifting and other concession demands since private sector employers first went on the offensive after the air traffic controllers' strike was defeated in 1981."
This history includes strikes by the CWA and IBEW in 1983, 1986, 1989, 1998, 2000 and 2004. In the toughest of those struggles, 60,000 CWA and IBEW members struck for four full months to protest healthcare costs shifting at what was then NYNEX, the New York and New England company now known as Verizon.
Meanwhile, as the strike enters its fifth day, the company has hired thousands of non-unionised workers to break the picket lines. Strikers protesting outside Verizon outlets and headquarters across the country responded with chants of "Union busting – it's disgusting," while urging onlookers and allies to stand with the unions.
On Wednesday, Verizon filed for and was granted a court injunction after striking workers blocked the entrance to the company's Pittsburgh headquarters.
According to Verizon, "Some union picketers put up chains and locks across and exits of the parking lot of a Verizon facility…prohibiting the workers there from leaving in their cars. This act is a direct violation of a court injunction prohibiting illegal blocking of Verizon facilities and those responsible are subject to legal action on the part of law enforcement authorities."
For the workers, this strike is a matter of basic civil rights, and they do not appear to be backing down.
"We have the right to communicate with the public about Verizon's demands and we maintain that CWA members should be able to picket about this dispute," CWA representative Candice Johnson said in a statement Wednesday.
Several other veteran employees described this struggle – on which their health and the health of their families hinge – as a matter of "life and death".
20 comments on "Verizon in Struggle with Striking Workers"
August 16, 2011 12:11am
Mugwump,How thick are your knee pads??
August 13, 2011 4:27pm
I am one of the 70 Verizon Wireless employees on strike and for those positive commentators I just want to say Thank You. Thank you, for realizing this fight is about Verizon's greed and about saving the middle class. In the span of 14 years I've educated myself, I've obtained a college degree and attended any training recommended to optimize my performance at work. I thought hard work equated success. I am outraged as well as disgusted, that all of my hard work along with many others, are not fairly compensated. Wireline and wireless workers helped build the infrastructure of the reliable network we've all come to enjoy. It's time Verizon gives back and completes the bargaining process. All I want to do is work my best, get paid, and then go home to my family (non-union jobs have responsibilities that most of the time spill into their family time which disrupts homes). Until then, I will be on the picket line fighting hard for what I believe I deserve. Thank you again for your time and support. This struggle truly effects us all.
August 13, 2011 2:45pm
Thanks for the suggestions and Peter Thonis' email. I have written him and I have encouraged others to do so.
August 13, 2011 1:54pm
Shufflebutt CWA hacks apparently don't like their jobs and can be easily replaced with workers happy to have job and are and are willing to work without whining. This is great, CWA strikers create job opportunities for people currently unemployed. Hats off to Verizon for maximum profitability and busting the CWA! I have been a loyal Verizon user for years and am very proud of the company. Verizon is the best!
August 13, 2011 8:57am
My contract is up with Verison.Which of the cellphone suppliers are least evil?I will switch to them!
August 12, 2011 10:49pm
I support the unions!!! The only reason Verizon has a chance to sell their expensive phones and service is because of an affluent Middle Class in American who has the money to buy that junk. $7 to $10 an hour wages will kill America...and Verizon will lose its customer base. The flagging economy is not recovering precisely because the Middle Class was afflicted by the banker's caused recession, and their illness has not passed. IT is not tricked down economics, it is more like suck up economics....so, if there isn't any money in the streets...then there's no money for the wealthy to suck up.
August 12, 2011 7:48pm
We all need to support union workers, or we will see a return to the conditions of the nineteenth and early twentieth centuries when workers had few or no rights when it came to dealing with the owners of businesses. Because of the influence of mine owners on the US government, in West Virginia the US Army was prepared to drop bombs on the striking miners. Without unions businesses will again have complete freedom to do as they please, and believe me, this will not be pretty.
August 12, 2011 4:11pm
Spartan,Now that you've canceled your service with Verizon, which telco service provider will you be using that does not lobby politicians in Washington for favorable treatment while also not wanting to outsource jobs offshare to save money?Thanks in advance,Nate
August 12, 2011 4:10pm
Here's another way to show support: call Verizon's customer service line and inform the (non union) representative you're connected to that I am calling to voice my support for the striking workers, and that I would like to see all of Verizon's workers be unionized. It will tie up their already-overwhelmed phone lines, and it will send a message to the non-union workers filling in for their union counterparts that union workers have a base of support and respect.
August 12, 2011 2:29pm
The problem that I've always had with Credo (I've gotten their solicitations many times) is this: whose network are they riding? Verizon and AT&T, that's who. How does going with Credo do anything to support workers or unions, besides the small amount that they donate to progressive causes?
August 12, 2011 2:25pm
Top execs never consider cutting their own salaries to help the company bottom line, do they?The Autoworkers Unions workers took heat for their pay but how many autoworkers could be employed for a million dollars if the execs' pay had been cut back that amount (or more)!
August 12, 2011 1:48pm
Hello, I am a union member, you can support us by telling all of your friends and family to let Verizon know how you feel about how they are treating their union employees. We have many verizon wireless employees who want to join the union for better benefits, and pay for their family, but are forced to do as told or lose their jobs(this is a threat from management.) Verizon is a very profitable company and should not be riding on the coat tails of this political propaganda we are seeing to erode the middle class workers. We are only seeking a fair contract, and despite the ads and radio commercials Verizon puts out we only want to maintain what we have. We are willing and prepared to pay a portion of healthcare, we want to keep our pension so we have something to live on when we grow old and can no longer work. We would also like to maintain our salary so we can continue to support our family. If Verizon was not profitable we could see the concessions they are asking of us. Not only are they asking us to take a $20k paycut, but they are unwilling to try to negotiate a fair solution to their demands. This is union busting and it is not fair to not honor their commitments to their employees. We are all sacraficing alot to try to let the world know that in America, this just is not right to discard the American worker like yesterday's rotting trash. Please go to our facebook page communication workers of america, or to our website. You can also send an email like the other posters did above. We welcome the public to help us in this fight for middle america and to preserve jobs in America. Please email Peter.W.Thonis@verizon.com your opinion on the matter. Thank you for reading.
August 12, 2011 1:07pm
I just wrote the following to Peter Thonis, Verizon's chief communication officer : peter.w.thonis@verizon.com:Dear Mr. Thonis,It is true that many of us are watching the Verizon/Union negotiations closely. I have been a customer of Verizon Wireless since it bought out GTE, thus making me a customer since 1998. I brought my husband, a friend, and two brothers to you as customers. If I feel that union members have not been treated fairly, I will be canceling my and my husband's Verizon accounts and will make every effort to bring the others with me. I am very tired of companies (and governments) crying poor and reducing employee pay and benefits. Verizon has millions to donate to Republican causes and to pay executives millions also. The day in and day out work staff should not suffer if profits are off. Period. I receive EXCELLENT service from your phone staff. I will leave if they have one dollar cut from their pay and benefits, and I will go to Credo. Thank you for considering my opinion and sharing it with those of influence. Most sincerely,Suzanne Ashley
August 12, 2011 1:05pm
Copy of email I sent to a VERIZON official. The name and addres may be of use to others.
From: xxxxxxxxx
Date: Thu, Aug 11, 2011 at 7:55 PM
Subject: Re: Bargain with CWA and IBEW NOW
To: peter.w.thonis@verizon.com
Dear Mr. Thonis:
I was glad to receive your email and thus have the name and address of
someone at Verizon to whom I can say DIRECTLY that many of us are watching
the Verizon/Union negotiations closely.
If at their conclusion we feel that union members have not been treated
fairly, we will be cancelling our Verizon accounts.
Dr. xxxxxx (and others)
> Thank you for your email to the COO's office.
>
> Verizon remains committed to working with the unions to negotiate a fair
and reasonable contract. Our intent is to secure a new contract that
ensures Verizon employees will continue to receive competitive pay and
benefit programs, while also providing a fair return to our
shareholders.
> Our wireline business has declined significantly in the last few years
and
> we need a new contract that reflects today’s economic and business
realities, as well as the needs of all of our stakeholders.
>
> Our goal is to keep Verizon strong now and in the future for our
employees, shareholders and customers.
>
>
> Peter Thonis
> Chief Communications Officer
> Verizon
August 12, 2011 1:04pm
Copy of email I sent to a VERIZON official. The name and addres may be of use to others.From: xxxxxxxxxDate: Thu, Aug 11, 2011 at 7:55 PMSubject: Re: Bargain with CWA and IBEW NOWTo: peter.w.thonis@verizon.comDear Mr. Thonis:I was glad to receive your email and thus have the name and address ofsomeone at Verizon to whom I can say DIRECTLY that many of us are watchingthe Verizon/Union negotiations closely.If at their conclusion we feel that union members have not been treatedfairly, we will be cancelling our Verizon accounts.Dr. xxxxxx (and others)> Thank you for your email to the COO's office.>> Verizon remains committed to working with the unions to negotiate a fairand reasonable contract. Our intent is to secure a new contract thatensures Verizon employees will continue to receive competitive pay andbenefit programs, while also providing a fair return to ourshareholders.> Our wireline business has declined significantly in the last few yearsand> we need a new contract that reflects today’s economic and businessrealities, as well as the needs of all of our stakeholders.>> Our goal is to keep Verizon strong now and in the future for ouremployees, shareholders and customers.>>> Peter Thonis> Chief Communications Officer> Verizon
August 12, 2011 11:46am
Following is a copy of an email I sent to a VERIZON representative, stating that if the union is not dealt with fairly we will cancel our service. The name an email address may be of use to others.From: xxxxxxxxxxxxxxxxxxxxDate: Thu, Aug 11, 2011 at 7:55 PMSubject: Re: Bargain with CWA and IBEW NOWTo: peter.w.thonis@verizon.comDear Mr. Thonis:I was glad to receive your email and thus have the name and address ofsomeone at Verizon to whom I can say DIRECTLY that many of us are watchingthe Verizon/Union negotiations closely.If at their conclusion we feel that union members have not been treatedfairly, we will be cancelling our Verizon accounts.Dr. xxxxxxxx (and others)> Thank you for your email to the COO's office.>> Verizon remains committed to working with the unions to negotiate a fairand reasonable contract. Our intent is to secure a new contract thatensures Verizon employees will continue to receive competitive pay andbenefit programs, while also providing a fair return to ourshareholders.> Our wireline business has declined significantly in the last few yearsand> we need a new contract that reflects today’s economic and businessrealities, as well as the needs of all of our stakeholders.>> Our goal is to keep Verizon strong now and in the future for ouremployees, shareholders and customers.>>> Peter Thonis> Chief Communications Officer> Verizon
Austin, TX
August 12, 2011 11:36am
Here's a link to the CWA info: http://www.cwa-union.org/issues/entry/c/verizon
August 12, 2011 11:31am
Here's how I am going to support them: I am going to cancel my service. Besides this crap, verizon supports political positions diametrically opposed to the middle class. It wants everyone to work for $7/hr or have his job sent to Mumbai.
August 12, 2011 11:19am
I'm a Verizon customer. Tell me how to support the Union Workers as they try to get a fair contract.
Austin, TX
August 12, 2011 11:38am
Also, check out: www.protestintheusa.org for broader information...