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Talk of Partners, Rumblings of Battle at Verizon
By STEVEN GREENHOUSE

July 31 -- NY Times -- Even though Verizon faces the threat of a strike this Sunday, the company is insisting in its high-wire labor talks that it wants to create an ambitious new partnership with its unions to survive and thrive in today's fiercely competitive telecommunications industry.

In urging its unions to agree to hold down costs and give management the flexibility to cut jobs, Verizon, the nation's largest telecommunications company, is sounding like Detroit's Big Three automakers two decades ago when they sought — and established — a trailblazing partnership with the United Automobile Workers.

Indeed, in a recent speech to the Economic Club of Detroit, Verizon's chief executive, Ivan G. Seidenberg, said that for his company to remain competitive, the unions needed to accept many of the steps that the U.A.W. had accepted. Like the automakers, Verizon has powerful unions that hamper its ability to reduce the work force and squeeze wages and benefits, a limitation that does not apply to many Verizon competitors.

In pivotal negotiations from 1979 to 1983, the auto union agreed to painful measures that held down costs and let management reduce the work forces. In response, Big Three management extended its hand in partnership in many ways: Chrysler gave the U.A.W. a seat on its board and General Motors made job-security pledges not to close certain plants.

"There was a big quid pro quo," said Douglas Fraser, who was the U.A.W. president from 1977 to 1983 and was given the seat on Chrysler's board. "It was because the industry was in trouble, and if the industry's in trouble, we're in trouble. There was a mutual desperation society that became a partnership."

In comparing the issues in his industry with those the automakers faced, Mr. Seidenberg said in his Detroit speech: "Just as the auto industry came to a crossroads in the 1980's, communications is at a similar turning point today. As Detroit learned the hard way, it couldn't manage successfully in the 1980's with an industry structure based in the 1950's. That's the situation we face in our core business today. We need to come up with a new model based on 21st century realities."

With the two sides making little progress on the major issues in their continuing negotiations in Washington, it is unclear if Verizon will achieve a broad new partnership with its main unions, the Communications Workers of America and the International Brotherhood of Electrical Workers. The contract covering 78,000 workers expires on Saturday night.

Verizon executives say that for the company to compete against lower-cost, nonunion rivals, the workers must pay more for health coverage. They also argue that to cope with the decline in traditional phone service and with fierce competition in the wireless phone and high-speed Internet access businesses, Verizon needs more freedom to reduce the size of the work force and to transfer employees.

But Morton Bahr, the president of the communications workers, derided Mr. Seidenberg's appeals for a partnership, saying that if he were serious about joining hands with the union, Verizon would not be aggressively fighting efforts to unionize nearly 20,000 workers at Verizon Wireless. Organizing Verizon Wireless, which is 55 percent owned by Verizon and 45 percent by the Vodafone Group, is crucial to the communications workers because employment there has grown steadily while employment in Verizon's traditional phone business has shrunk.

"Partnership is a two-way street," Mr. Bahr said last month when the negotiations began.

Even as Verizon executives say they want a Detroit-style partnership with the unions, they are also quick to acknowledge that their company, with $4 billion in profits on $67 billion in revenue last year, is not suffering nearly as much as the automakers were two decades ago when they were rapidly losing business to Japanese producers.

Nonetheless, Verizon is being squeezed on many fronts — deregulation, the decline of conventional phone service, competition in wireless and attacks from cable companies and others in the Internet access business.

"The union leadership is standing at a crossroads," Mr. Seidenberg said in his recent speech. "They can hold on to the old industry, and accelerate the flow of jobs and investment away from traditional telecom companies to the newer companies. Or they can join the fight for our mutual survival and help us find a new model that will help us preserve jobs and compete in the marketplace."

At times, Verizon and its unions have had a strong partnership. The company and the workers received considerable praise for their cooperative efforts in rewiring Lower Manhattan after the September 2001 terrorist attacks. And they won high marks for working together to develop a training program for telecommunications technicians.

But those warm feelings have evaporated in the current negotiations as Verizon called for weakening job security provisions and obtaining more leeway to transfer workers. Verizon executives say they need such flexibility in light of an arbitrator's ruling two weeks ago ordering that 2,300 workers be reinstated because they had been laid off in violation of the union contract's job security language.

Under the current contract, Verizon can transfer just 0.7 percent of the work force in a given state each year, but Verizon, union officials say, wants to increase that to 8 percent a year. With such proposals, union officials say, Verizon's talk of a partnership rings hollow.

"At this point, I've seen no indication that they're laying out plans to forge a mutually beneficial partnership that recognizes that this union and its workers are here to stay and deserve to be able to grow with this company long term," said Jeffrey Miller, spokesman for the communications workers. "Verizon wants much more freedom to move people around or fire them, and that's not acceptable to our members and it's not going to be the foundation for a settlement or a partnership."

The history of labor relations with the communications workers in New York also poses a hurdle. "It's true that the union in New York is more militant than the union elsewhere," said Harry Katz, a professor of labor relations at Cornell. "But the management here is tougher and rougher. They have a long legacy of distrust."

To satisfy the union's demand for job security, and management's demand for more flexibility to reduce the work force, may prove as difficult as squaring the circle.

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Nashua, N.H., Verizon Union Members Prepare for Likely Strike

Jul. 31-- The Telegraph -- Geared up for a bitter strike, Verizon union members have already started picketing top executives' homes.

"We'll die on the street if we have to," said David Reardon, union business agent in charge of the protest effort for the International Brotherhood of Electrical Workers Local 2222 in Boston, the largest Massachusetts technicians unit.

Reardon is one of about 80,000 unionized Verizon Communications Inc. East Coast workers ready to walk off the job if contract talks with the telecommunications giant don't reach an agreement by midnight Saturday.

That's when the company's contracts with its two major unions, Communications Workers of America and IBEW expire. The two unions make up about one-third of Verizon's workforce.

Verizon says it's facing pressure to cut costs because of competition and a decline in landline services.

In fact, on Tuesday, Verizon reported net income of $338 million for its recently ended second quarter, on revenue that was basically flat at $16.83 billion.

Company officials said a lot of the improvement came from its wireless and long-distance businesses, while traditional access lines went down by 3.7 percent in the quarter. Verizon also cited cost-cutting, including the elimination of 15,000 jobs compared to the same quarter last year, as a boost to profits. The company also reported $338 million in profit.

While CWA said it hopes to avoid a strike, IBEW said its members are already ready to pick up picket signs.

Though Verizon officials say they're hoping to avoid a work stoppage, the company has already trained teams of company managers from all over the country as well as former managers from the former Bell Atlantic region. If there is a strike, all of them will be called in Aug. 3 to replace the call service workers and technicians -- even if it means putting on hard hats and climbing ladders.

In New Hampshire, there are 1,249 union employees and 600 managers.

"The managers will do what they need to do," said J. Michael Hickey, Verizon's president for New Hampshire. "You will see a very strong commitment on the part of the management team. There is no option." But Reardon says the management positions won't be able to keep up with the work.

"I think the company will regret it if they put us on the street," Reardon said. "We'll damage them." At issue between the New York-based company and the unions are job shifting, job security and employee health benefits.

Verizon, the largest union employer in the telecom industry, said increasing competition has devoured its local-telephone business in recent years, and it needs more flexibility to transfer workers to sites across the country to shift work from overworked offices to those with lighter loads.

The company also wants workers to pay a higher share of health care costs, which have risen 12 percent over the past year.

Union representatives from both sides have talked for a month, but negotiations are at a standstill, IBEW's Reardon said Tuesday.

Verizon's Hickey said the company "feels we ought to be able to come to an agreement.

"No one wants a work stoppage," Hickey said. "There's a good amount of angst over this and that's natural." The question isn't whether there will be a strike, but how long it will last, according to Reardon.

"It's a game to see who blinks," he said. "Hopefully, they do."

The movement of work issue is a "drop dead" issue for both unions.

Verizon needs the flexibility to shift more jobs to other locations as necessary, Hickey said.

That flexibility means workers could be moved at any particular time, said Lisa Thorne, Verizon's public affairs director.

The unions are dead-set against such transfers, which they believe could even be overseas.

Moving workers even to states in the mid-west or southern part of the country where wages are lower is unfair, Reardon said.

"It could really be devastating for people who have their roots here to pick up and move," he said.

But union reps say the company is very successful, signified by its move into the wireless business.

"We have helped make that happen, and now all of a sudden, the company wants to get rid of our members' jobs," Reardon said. "It wants to transfer thousands and thousands of jobs and our members say 'no' to that." According to Reardon, job shifting could mean a loss of 3,000 to 4,000 in New England.

"That's a major impact. It goes to the community," he said. "They should have some kind of commitment to the community to keep those jobs here. These are good paying jobs and a good company to work for, but we can't take that chance to allow those jobs to be gone."

With escalating health care costs, Verizon officials say they can no longer afford to pay 100 percent of premiums any longer.

Union members are worried that the company may start making both active employees and retirees contribute to their health plans, according to Reardon. Employees and retirees right now pay nothing for health coverage.

"We're not going to sell out the retirees, either," Reardon said. "We shouldn't have to take diminishments from a company that made $4.3 billion in net profit last year."

The company reported earnings of $338 million Tuesday compared with a loss of $2.12 billion in the corresponding quarter of 2002.

Verizon stresses that its workers are some of the best-paid in the industry, and benefits include a full pension and 100 percent up-front tuition paid for courses. The company also has the second-best 401(k) plan, Hickey said.

Workers also get 15 vacation days, 12 paid holiday, four personal days and "incidental" absences per year.

Those benefits may not have been enough to keep workers coming to work.

Verizon claims that union workers have the highest absenteeism rate in the industry -- 6 percent.

"That's twice the industry average, and three times the average of the management team," said Thorne.

Candace Johnson, a spokesperson for CWA, said that Verizon's own data shows that a high percentage of absences result from call-center workers who experience ergonomic injuries such as carpel tunnel syndrome and muscular/skeletal disorders.

"That's something Verizon needs to address," she said.

Thorne said those claims can't be substantiated.

"Both GTE and Bell Atlantic had very strong ergonomic programs," she said. "When we merged and became Verizon, we took the best programs and rolled them out across the country. We partnered with the union to do that."

Reardon attributed the absenteeism to stress.

"They're whining about their financials, but the fact that they've laid off 3,000 people, and are putting a lot of emphasis on trying to increase production, that's caused a lot of stress in the workplace," he said.

Another issue is overtime. In the bargaining agreement reached three years ago, CWA won limits on forced overtime, which was exceeding 15 hours per week.

The agreement stated that forced overtime could not go beyond 7.5 hours per week and employees had to be given four hours advance notice that they would be working extra hours.

"The company has come to the bargaining table saying, 'that doesn't work .?.?. we want to take them out," Johnson said. "Our members are saying, 'We' re not going to go back.' " "The inflexibility of the company when it comes to family issues is just incredible." Reardon agreed.

"I mean, it's pretty outrageous that they want to move these jobs and want us to pick up more of our medical costs. We're not going to allow that without a fight and I think the company knows that.

"I think that they'll be a strike and I think we'll be successful."
 
 

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Verizon, Unions at Odds over Job Security Issues

Jul. 31-- Bangor Daily News -- Almost 1,300 Verizon Communications union workers in Maine could walk off the job at midnight Saturday if a contract is not reached by then.

Verizon is vowing that customer service-related activities, from directory assistance calls to line installations and repairs, will not be affected if the two unions follow through with their already approved strike, according to Peter Reilly, a Verizon Maine spokesman.

"We believe we're going to get a contract before the strike because no one benefits from a strike," Reilly said. "But we are doing whatever is necessary to continue good customer service."

The Communications Workers of America and the International Brotherhood of Electrical Workers, both representing nearly 80,000 Verizon union employees throughout the Northeast and the District of Columbia, are in tense contract negotiations over job security issues that some say at this point just cannot be resolved by Saturday night. A federal mediator has sat in on the talks for the last two days.

The job security issues are similar to those that held up contract negotiations in 2000 and forced an 18-day strike that did hold up customer repair requests. By the fourth day of the strike in August 2000, 82,000 customers throughout New England had pending repair orders, 50,000 more than the same time the previous month. Reilly at the time said repair requests were backing up in Maine but not to the level as that in other states.

Verizon currently is planning how it will handle its customer service functions if a strike occurs again, and that is enflaming already deep-seated resentment among union workers toward its employer.

Verizon has contracted with a Texas company to recruit temporary employees to fill in for striking workers. Verizon also has notified managers and retirees to "get their steel-toed boots ready" because they will be leaving their homes and offices and manning call centers and construction sites.

The managers and retirees replaced union workers during the 2000 strike, too.

Meg Collins, an executive vice president for CWA Local No. 1400, based in Portsmouth, said the union disagrees with Verizon's choice to hire temporary workers. She said she believes the issues holding up the talks can be easily resolved prior to Saturday night.

"They're ripe and ready looking for new workers," Collins said. "Yeah, they're going to be popping up all over the place. We're not happy about it. We're not asking for much. The company is profitable and the executives are profitable." Network Recruitment Corp. of Texas does not have an office in Maine, but has contracted with WorkSource Staffing Services of Bangor to find 40 to 50 people for "long term temporary assignment." Joanne Dichard, a WorkSource recruiter in Bangor, said WorkSource was not directly hired by Verizon and doesn't know anything about the contract negotiations. She said her agency is sending the names of interested applicants to Network Recruitment, and that they are being advised that they could be called upon to fill positions of workers who are on strike.

"We tell them there is a strike situation, there may be a picket line and they may have to cross it and they should be prepared for that," Dichard said.

WorkSource's name appears on a CWA e-mail alert under the header, "Scabs R Us," and Dichard said that's unfair.

"It's not like we go out and solicit striking companies to hire scabs," she said. "We're a staffing agency that provides permanent and temporary workers." In Bangor, Verizon employs 80 unionized workers to handle customer service calls and another 50 to answer directory assistance questions.

According to one Bangor union worker, who asked not to be identified, those jobs could be lost if a "job-shift clause" in the current contract is changed in the next one.

Currently the "job-shift clause" allows Verizon to move 4 percent of its workload to another location, whether that is in the United States or countries such as Canada or Ireland, where Verizon already has customer assistance centers set up. Verizon has told the unions it wants to have the flexibility to move 15 percent of its jobs to other locations, according to the unions.

"That could essentially eliminate most of the jobs around here," the Bangor union worker said. "We don't want to lose our jobs. These are good paying jobs." Reilly said Verizon is adapting to changes in the telecommunications marketplace. He said a recent study showed that 40 percent of all Americans are decreasing the amount of time they spend on their home telephone, and instead using e-mail and instant messaging on their computer, or their cellular phone.

"The company must have the flexibility to deal with competition and many other issues so that it remains successful and the leader in the telecom industry," according to a Verizon press statement. "The challenge is being able to factor these realities into the contracts to the benefit of both the company and our employees." On Tuesday, Verizon reported that it earned $338 million in the second quarter as revenues edged higher, led by strong growth in new long-distance and mobile phone customers, and spurred in part by company stream lining efforts that included layoffs of 15,000 workers since June of last year. However, the company continued to lag rivals in attracting customers for high-speed DSL Internet service despite aggressive price cuts.

It also announced in a conference call with analysts that it would have to cut another 5,000 jobs this year because of further declines in its traditional wireline phone business.

But about 2,300 union workers, including a few dozen in Maine, who thought they had lost their jobs at Verizon have been rehired effective July 30. Earlier this month, a federal arbitrator ruled that the company violated the terms of its labor agreement when it laid off the workers last December to cut costs.
 
 

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Verizon Declares Emergency, Faces Strike, Quits Installations on Long Island

Jul. 31--With as many as 6,000 phone lines out of service, Verizon has declared a state of emergency on Long Island and stopped installing new phone lines as a strike looms for this weekend.

The company, already in hot water with the state Public Service Commission for service shortfalls during the past year, told the commission in the past few days that a high number of weather-related maintenance orders were behind the measure, said PSC spokesman Dave Flanagan.

The move allows Verizon to order the workers to put in extra overtime, but union officials suspected it was part of the company's effort to catch up on repairs before a strike.

On Friday, Verizon had 11,000 outstanding repair orders compared to an average 2,500, according to the PSC. Yesterday, the number was still off the charts at 6,000.

Verizon spokesman Jim Smith blamed the problems on a "very wet spring and summer" that "exposed a lot of equipment to the weather."

Asked when the backlog would be resolved, he said, "It's a function of how much we can get done. I can't tell you whether we'll catch up in three days, two weeks or more."

Local customers are feeling the impact.

Joe Barbuto, owner of Next Wave Solutions, in East Meadow, said he made plans to move to a new office today and expected new lines to be installed by Tuesday, but was left in the lurch when technicians never showed.

Yesterday, a Verizon worker called to say the new state of emergency meant "no installations are being done until this is lifted."

Kelly Campbell and her family have been waiting for a new phone line to her home since the company originally scheduled an installation on June 18, she said. After weeks of excuses, the company yesterday blamed the state of emergency, saying she shouldn't expect service until repairs are caught up.

"My husband and I have three small children at home and if there is an emergency we will resort to running in the street and screaming, Help!" she wrote in an e-mail sent to Newsday.

Verizon on Sunday faces a walkout by 78,000 workers from Maine to Virginia as it negotiates for the ability to transfer unionized employees, among other conditions.

Bob Morrow, vice president of Local 1108 of the Communications Workers of America, said he suspects Verizon is declaring an emergency to ease the backlog before a possible strike. Morrow questioned the extreme weather but said the repair backlog is real. "The plant is totally failing right now," he said.
 
 

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Verizon Reinstates 2,300 Laid-Off Workers

Jul. 31-- Newsday -- More than 2,300 Verizon Communications Inc. workers laid off statewide in December returned to their former jobs yesterday morning, two weeks after an arbitrator ruled the company went outside its contract with employee unions in declaring the workers "surplus."

Sporting red T-shirts with the slogan "We won!" the workers gathered in half-hour rallies outside Verizon repair garages to celebrate their return, while preparing for the uncertainties of a strike that could put them back on the street by Sunday.

"While it's a great day for you and everybody here, it's just the beginning of what's going to be a long and difficult fight," Jim LaCarrubba, business agent for Local 1108 of the Communications Workers of America, hollered to a group of around 100 workers outside a Verizon garage in Commack. Around 50 of the workers were among those reinstated.

LaCarrubba told workers a strike "looks like a definite," and said, "We will stay out as long as it takes to protect every job here."

While Verizon and the unions met Tuesday with a federal mediator as a strike deadline looms Saturday night, Verizon officials made clear the belief that any final contract must free the company to transfer and cut workers -- a demand the union is dead set against. Verizon also wants workers to be more productive and pay more of their medical benefits.

"The flexibility to manage the force and assign work so that we can move the work force to the future business requirements that we see," are key parts of contract talks, said chairman and chief executive Ivan Seidenberg on a conference call Tuesday. "The contracts are very difficult insofar as we can reduce force and redesign work over the long term."

LaCarrubba countered, "We didn't fight for seven months to get these jobs back just to give them up."

The reinstatement of the workers, at a cost to Verizon of some $30 million, was considered a further blow to Verizon's efforts at greater work force flexibility. Workers' unions and an arbitrator said the company went outside contract language when it cited increased competition and a tight economy to declare an "external event" that would have permitted a layoff. Verizon must pay the workers' seven months of back wages, minus severance and unemployment benefits.

"It's finally been rectified," Christopher Hahn, a candidate for Brookhaven town council and Long Island director for U.S. Sen. Charles Schumer, told workers in Commack. He added, "Senator Schumer and I will stand with you through this strike, if it comes to that."

Commack field technician Jim Finnigan, labeled "surplus" before his termination on Dec. 19, said he hasn't heard from the company about the back payments. He said he's ready to walk off the job Sunday if the union orders it and "the company is not willing to negotiate for a fair contract."

Strike pay for union members is $200 a week after 15 days, and $300 a week thereafter, LaCarrubba said.

Verizon spokesman John Bonomo said of the returning workers, "Today should be basically a normal workday for them. Let's face it, they know the job. Let's return to providing good customer service."
 
 

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Saturday Deadline Set for Verizon Negotiations with Lynchburg, Va., Employees

Jul. 31--LYNCHBURG, Va.-- Knight-Ridder Tribune -- Local Verizon employees will be working picket lines instead of phone lines if the telecommunications company doesn't reach an agreement with its unions by Saturday at midnight.

Managers from as far away as California could be filling in for close to 75,000 protesting employees for an indefinite period of time.

Contract negotiations continue along the East Coast, but so far the two sides have been unable to reach an agreement.

"They've pretty much been butting heads to this point," said Rea Patton, president of the Communications Workers of America Local 2203 headquartered on Leesville Road. CWA Local 2203 represents more than 200 Verizon employees in Central Virginia.

Verizon spokesman Paul Miller said that a strike is not inevitable and that the company is working hard to reach an agreement.

"A strike would not be in anyone's best interest -- the company's, the employees' or the customers'," Miller said.

Union workers are fighting to keep the same health care coverage that they had in their last contract and want better job security, while the company is arguing that increased market competition is cutting into the company's ability to stay on top.

Dwayne Campbell, executive vice president of CWA's local chapter, said that union workers want freedom to organize within Verizon's subsidiaries such that employees who lose their jobs with Verizon local might be able to find a job with Verizon Wireless and remain in the union.

CWA also wants to keep language in its contract that prevents Verizon from laying off employees at will.

A New York arbitrator ruled earlier this month that Verizon violated a labor agreement between itself and CWA when it laid off more than 3,500 employees late last year. Rather than face more cases in other states, Verizon chose to hire back all 3,500 employees in the Northeast and to pay out more than $80 million in lost wages.

Patton said that the company wants to eliminate the language in the union contracts that led to the arbitration, and if it succeeds it will have the freedom to lay off any employees who have been with the company for fewer than 10 years.

In Central Virginia, Patton said, that would eliminate job security for about 90 percent of Verizon's employees.

The union is also seeking changes to the benefits package.

Campbell said the contract that Verizon has suggested would shift the increased costs of health care to employees instead of the company and that in some cases employees would have to pay hundreds of dollars more for prescription drugs than they have paid up to now.

"We understand that the costs of health care are high," Campbell said. "... They should be working on getting better legislation, not profiting off of our backs."

Verizon's revenues last year topped $60 billion and the company took home more than $4 billion in profits.

Miller said that the union will have to share the burden of increased health care.

"Union members' health care plan is paid for completely by the company right now," Miller said. "My health care plan, as management, is not totally paid for.

We're asking the same of the union and we need their help with skyrocketing health care costs."

In general, Miller said Verizon is facing more competition than it ever has before, and it needs to make changes to the way it operates.

Verizon is the largest local telecommunications provider in the United States, but Miller said it is losing access lines in Virginia and other states as a result of increased competition from local phone service providers.

"The union needs to wake up to the fact that this is not the monopoly of the '60s and we need to stay competitive," Miller said. "If we can be competitive and survive then the union can survive."

Miller said that Verizon employees are among the best compensated employees in Central Virginia and that, on top of their income, their benefits packages are worth up to $20,000 per year.

"Verizon has been a very secure company to work for and it will continue to be," Miller said.

CWA's last major talking point has involved executive salaries.

"Verizon's CEO (Ivan Seidenberg) has made $66 million since 1997 and $9 million in 2002 alone," Campbell said. "And they want to cut jobs."

Miller said that the unions have no reason to single Verizon out for executive compensation, because it pays its leaders as much as any other major corporation.

"It's an absurd accusation," Miller said. "Sure, the chairman of our board makes a very comfortable salary but he's also responsible for a huge corporation and 127,000 employees."

Given the slow nature of negotiations so far, Patton said that a strike is looking likely.

"No one has a crystal ball, though, and things could change at any time."

Patton said that 92 percent of the local union membership has voted to strike this year, and that there will be informational pickets today on Leesville Road and Church Street.

Union workers will carry signs with slogans such as "United we bargain, divided we beg."

If there is a strike, Miller said that company managers and retirees are trained and ready to step in and work abandoned shifts.

The managers will come from across the country and will repair phone lines, set up new service and perform the same duties that unionized employees normally do.

"These people may be working many hours, 12-hour days in some cases," Miller said.

The company is also prepared to outsource some jobs, possibly including 411 service, in order to keep operations running smoothly.

Despite the imported workers, service could be affected; the 18-day strike in 2000 resulted in a backlog of more than 200,000 new service requests.

Miller said that there is no way to predict how long a strike would last this time around.
 
 

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Verizon Workers in New York Get Call to Return to Work

Jul. 31 -- Times-Herald Record -- The week Alice Rivera got laid off from her job, her son was diagnosed with Hodgkin's lymphoma.

Rivera, a Verizon pay phone coin collector, left the $21-an-hour job she had for more than 20 years to work at an oxygen company for $10 an hour.

Her son had to go on Medicaid.

"That, in itself, is a very humbling process," Rivera said.

Seven months after being laid off, Rivera and 2,312 other Verizon workers in New York got to go back to work yesterday.

Verizon said the workers were laid off for a number of reasons.

"It's been basically pressures on our business from the economy, competition, technology substitution, where people are substituting new technologies for traditional telephone lines, and regulatory policies," said Cliff Lee, a Verizon spokesman.

Unions representing the workers, Communication Workers of American and International Brotherhood of Electrical Workers, challenged the lay-offs.

Earlier this month, an arbitrator ruled that the workers had to be re-hired.

For most of those laid off by Verizon, it made more sense to stay home and collect unemployment because if they were lucky to get job offers, they didn't pay much.

Rick Santos applied for 40 jobs. He was called for only two interviews but didn't get a job.

To add to the stress, Santos, with Verizon for three years, found out his wife was pregnant shortly after he lost his job. She's due next month.

He needs his job as a field technician even though, he says, "It's the most dysfunctional company I've ever worked for in my life." Santos stays at Verizon for the benefits and the good pay. That's what the union, CWA Local 1120, got him.

"I've never seen a union and a group of guys that was so supportive and encouraging," Santos said. "It's great to be back. Man, I'm thrilled. I couldn't even sleep last night. I was all excited to come back."

Yesterday was bittersweet for the workers. In a few days, they could go on strike if the union doesn't reach an agreement with the company. Their contract expires Saturday night.

Russ Urban was also glad to be back. He walked into the Verizon building on Route 32 with dozens of his smiling co-workers, but knowing his time might be limited.

"It looks like we'll be walking the line," Urban said.

Urban has heard rumors that it could be a long strike, but he's optimistic.

"We have a strong union. I have faith in them," Urban said. "I mean, they got us our jobs back."

Job security is the core issue in Verizon's contract negotiations, said Michael Jordan, executive vice president of CWA Local 1120. CWA Local 1120 represents 600 Verizon workers in the mid-Hudson area, 91 of whom had been laid off.

Chris Pidustwa is sure he'll only be back at work for a few days, because of the strike.

"It's better to expect the worst and be pleasantly surprised," Pidustwa said. "I still don't feel secure. I still don't feel completely safe. It's kind of like walking around with a bull's-eye on my head."
 
 
 

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As Possible Strike Looms, Federal Mediator Joins Verizon Contract Talks

Jul. 31 -- Patriot-News -- A strike by 80,000 Verizon Communications workers in the midstate and across the Northeast and mid-Atlantic states could be as little as three days away.

Negotiators for Verizon, the nation's largest telephone company, and two unions, the Communications Workers of America and International Brotherhood of Electrical Workers, were joined by a federal mediator on Tuesday in an effort to avert what many fear will be a long and costly strike beginning at midnight Saturday.

About 11,000 Verizon employees in Pennsylvania -- between 3,500 and 4,000 living in the midstate -- could end up on the picket lines. The most likely places for picketing in Harrisburg are outside Strawberry Square, where the company has a large suite of offices, and at its switching facility at Second and Pine streets.

Verizon employees went on strike for 18 days at the expiration of the last contract in the summer of 2000. Regular telephone service continued without problem, but service calls and installations were delayed, sometimes for long periods.

This time around, Verizon is asking employees and retirees to give up free health insurance, and that employees use as many as four vacation days before getting sick leave. Employees with less than three years of service would get no sick days, an effort by the company to reduce what it has called "excessive absenteeism."

"The company's retiree health-care demand is one of its more outrageous demands," read a statement posted Tuesday on the CWA Web site. "At this late date, the company keeps placing more concessionary demands on the table. It is more and more unlikely that this many issues can be resolved in the few days left before contract expiration."

Vince Maisano, the top CWA official in Pennsylvania and Delaware, was involved in contract negotiations Wednesday and could not be reached for comment.

Verizon spokesman Eric Rabe said in a statement that the company negotiating team is led by Larry Babbio, vice chairman and president of domestic telecommunications.

"The company's goal throughout the negotiations has been to reach a fair and equitable agreement on time that works for Verizon and its employees," Rabe said. "This is another step we have agreed to take in order to reach that goal."

Verizon says on its Web site that 16,500 Verizon retirees live in Pennsylvania, although it does not say how many of those had been management employees. Among them is Barbara Wargo of Dillsburg, a recent retiree who says she supports union efforts to protect both her benefits and those of active and future workers.

"I don't want the people who are 16 now and will be looking for work in five years to not have these benefits," she said.

Both sides have started running advertisements to argue their cases to the public. Verizon paints the negotiations as an effort to lower company costs at a time of increasing competition from land-line and wireless competitors (although Verizon Wireless is the nation's largest cellular company). The union points to Verizon's strong financial performance and calls it corporate greed.

According to Verizon, service technicians in Pennsylvania earned an average of $57,000 in 2002, 19 percent more than the market average. It says union benefits are "well above average" compared to other companies.
 

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Verizon Launches Preemptive Ad Campaign as Workers Threaten Strike

Jul. 31 -- Boston Globe -- Verizon Communications Inc. has been blanketing airwaves and newspaper columns with an unusual preemptive advertising campaign to sway public opinion against its Northeastern workers who are threatening to strike on Saturday. But the advertisements, which tout the workers' rich pay and benefit packages, don't tell the whole story -- just the best version for Verizon's purposes.

The television spot features a "Pete" talking to diner owner "Joe" about his friend "Charlie" who just underwent major medical treatment. But because Charlie works for Verizon, "His job covered almost all of it," says Pete, adding that "He's got it good: Great medical, lots of vacation, good pay."

TV, newspaper, and radio versions of the ad all highlight Verizon's assertion that its technicians in Massachusetts "earn an annual average of $79,000 in salary and benefits" with "100 percent healthcare premiums and pension benefits paid."

Union officials say the $79,000 figure may be technically true. But they call it misleading because it includes every last fringe benefit Verizon could find to tack on to the actual $60,000 average pay for technicians, from pension, medical, and dental contributions down to free local phone service offered to employees valued at $200 a year.

Moreover, Verizon's figure covers only the most highly paid technicians represented by the International Brotherhood of Electrical Workers, typically workers who climb poles, install and repair phone lines, and program and fix switching computers. It leaves out numerous IBEW job classifications such as operators, clerks, and payphone coin collectors who make top pay closer to $40,000, as well as all of the call-center agents represented by the Communications Workers of America, whose pay in New England averages $45,000.

"It's a lot of smoke and mirrors," said Paul R. Feeney, a switching-office technician in downtown Boston who also serves as communications director for IBEW Local 2222. "It's also ludicrous to me that they're putting out all these benefits as something that they're so proud of. They never gave us that stuff. We had to strike them for 17 weeks in 1989 to get a lot of those benefits. It's not like Verizon is being this great gift-giver."

Preservation of one of the key benefits cited in the ad -- healthcare coverage with no weekly premium contribution required from union members -- was a key labor goal of the long, bitter 1989 strike at Verizon predecessor Nynex. Because workers are still required to cover copayments and deductibles, Verizon estimates union workers pay about 5 percent of their total healthcare costs, compared to 15 to 20 percent for Verizon management employees.

As contract talks drag on with little reported progress, and a growing sense among union workers that Verizon wants to provoke a long strike to break their unions, labor leaders are clearly annoyed by the ad. Although low-key in pacing and style, its goal is clearly to undercut efforts to rally public support if they go on strike by portraying Verizon's rank-and-file as supremely well paid workers with one of the sweetest healthcare deals anywhere in America.

Verizon spokesman Jack Hoey said company human-relations analysts "bent over backward" to make sure the ad campaign was exactly accurate, adding that the company could have included the value of overtime and time off to make the $79,000 figure even higher. Verizon has tailored the ad to each Northeastern market, inserting local numbers for total pay and benefits ranging from $76,000 in Pennsylvania and Washington, D.C., to $84,000 in New York.

Hoey said Verizon launched its ads 10 days ago only after the Communications Workers of America came out with an ad campaign blasting Verizon for lavish executive pay packages, including $58 million in compensation for chief executive Ivan G. Seidenberg -- a number based on an unrealistic assumption that Verizon's stock price increases 10 percent a year for each of the next 10 years to maximize the value of Seidenberg's stock options.

"Our ads do not attack the union," Hoey said. "Our ads talk about what a good company this is to work for. The bottom line is our union employees today are among the best compensated in the industry, and when we get a new agreement -- which we hope we will be able to do without a strike -- they will continue to be among the best compensated. We think that well-paid employees deliver the best service."

Tobe Berkovitz, an associate professor of communication at Boston University specializing in advertising, called the diner ad "a very smart strategy, and it's much more out of the political playbook than the consumer advertising playbook."

"The execution is exceedingly pedestrian. It's matter-of-fact, even workmanlike, but I think it probably works for what they want it to do.

All that they're trying to say to the public is that Verizon telecom workers are well compensated and have excellent benefits."

Berkovitz said Verizon is clearly trying to "inoculate itself" against a public backlash if current contract talks fail to stave off a work stoppage starting at midnight Saturday.

But Candice Johnson, a spokeswoman for the Communications Workers of America, said: "The message is misleading and disingenuous at best." In particular, Johnson said, it is "kind of hypocritical" for Verizon to tout its full healthcare coverage when "at the bargaining table they want to get rid of it" and impose new or higher premiums on workers.

The CWA has responded with its own 60-second radio ad set in a diner, where a waitress tells a patron "Verizon's demanding to cut those same [health] benefits" and "wants to be able to lay off more workers."

Hoey said Verizon does want to control its mushrooming $2.7 billion annual healthcare bill for current and retired employees, but in contract talks has proposed keeping a no-premium health plan with larger deductibles as well as a plan charging a weekly premium that has lower deductibles.
 
 
 

TO: OUR FELLOW CWA 1101 MEMBERS
FROM: ANGEL FELICIANO, EXEC. V.P., CWA LOCAL 1101
DATE: Wednesday, July 30, 2003 11 PM

"We welcome our brothers and sisters home, the injustice has been reversed.

In the meantime after four weeks of what was supposed to be intensive bargaining there is not one single agreement of substance. The only real agreement of the two party's is that we agree we're miles apart.

All members should be prepared for a long bitter fight for survival.

If you have less then ten years, this is a fight for your survival.

If you're retired or thinking of retiring, this is a fight for your survival.

If you're planning a career, this is a fight for your survival.

Survival means preparing to ask your friends, relatives and neighbors to switch from Verizon, Verizon wireless and Verizon long distance to a company that cares about employees.

Survival means being active and being prepared to explain to the public why we must fight this fight to stop the criminals running this company from raping and plundering.

Survival is making sure the leadership understands they may be the unsinkable Titanic but we're that big white thing in front of them.

Thank you for calling and please stay in touch with these tapes."

VERIZON PROFITS UP, BUT WORKERS DOWN AND OUT
By PAUL THARP
July 30, 2003

Verizon celebrated a profits boost from selling more wireless accounts by announcing plans to dump another 5,000 workers.

The telephone company yesterday said it earned $338 million in the second quarter, largely from its 14 percent surge in the high-margin wireless accounts.

A year ago, Verizon posted a loss of $2.12 billion, or 78 cents a share. Second-quarter sales rose to $16.83 billion from $16.75 billion.

Its announcement of the layoffs came as tensions mounted in labor talks between Verizon and its unionized workers, whose contracts expire in coming days.

Analysts say Verizon's shares were pulled down by the prospects of a lengthy labor strike next week if the company cannot reach a contract deal with its unionized workers, who represent about 35 percent of its work force.

"We're scared off right now by all the labor talk, which will weigh on the stock," said Tim Ghriskey of Ghriskey Capital Partners LLC, which sold its Verizon shares earlier this year.

Last week, an arbitrator ordered Verizon to rehire 2,300 workers after ruling that the employees were improperly fired.

Verizon and the Communications Workers of America have been in a public war of words, with the union blasting the company's brass for taking $395 million in bonuses while shareholder value skidded $80 billion in the past five years.

Earlier this year, Verizon shareholders voted in a surprise revolt to slash golden parachutes for executives. CEO Ivan Seidenberg's $51 million golden parachute was reduced to about $4.5 million.

Verizon fell 58 cents to $35.40 in heavy trading of about 9.4 million shares.

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Verizon Northeast Bargaining & Mobilization

As Clock Ticks, Company Sticks to Demands for Concessions
Seeking Health Care, Job Security Givebacks
 

On Monday, July 28th, union and company negotiators spent the entire afternoon discussing the status of Verizon's VEBA account-Voluntary Employee Benefits Account.

This account was initiated in 1991, with the sole purpose of funding retiree health benefits. There is about $700 million in the account, but the company now refuses to use any of it to pay for the increased costs in retiree health benefits. Instead they count the $700 million as an asset that inflates their bottom line profit figure.

Union negotiators closely questioned the company on the status of the VEBA account, and why they are refusing to use the funds for the correct purpose.

Changes in New Company Proposal Incomprehensible

Verizon negotiators put forward a new comprehensive contract proposal on Friday, July 25th. However, it was impossible for union negotiators to understand the differences between the company's original proposal, and its so-called new proposal.

The company was scheduled to make a "side-by-side" comparison of the two proposals on Monday in order to explain how the second proposal represented progress from the first, but the VEBA discussion took precedence. The company was supposed to present its explanation on Tuesday, July 29th. Thus far, however, company negotiators have had a great deal of trouble explaining any of their contract proposals. The proposals seem to have been drafted by company officials in Dallas, and the New York negotiators are unfamiliar with them.
 

Laid Off Workers Return Wednesday, But Company Demands Elimination of Article 55 Job Security Protections

Wednesday, July 30th will be a great day in CWA history as we celebrate the return to work of 2300 laid-off workers illegally laid off last Christmas. Many locals will be holding rallies and other events to welcome back our laid off brothers and sisters. But the battle continues because Verizon continues to insist that we must give back the "external event" language-and your bargaining committee has told Verizon: "NO WAY! NEVER!"
 

CWA/IBEW REGIONAL BARGAINING UPDATE

July 29, 2003
3:30 PM

A meeting was called for by the head of the Federal Mediation Services today and it is being attended by CWA President Morty Bahr along with the Vice Presidents of District 1, 2 and 13. Also in attendance are leaders from the International Brotherhood of Electrical workers.

From the Company in attendance are Larry Babbio and Jack Navarro. As this is being written the meeting is continuing. We will update this report as events warrant.

 In Unity

 The Regional Bargaining Team

Verizon, Unions Talk With Mediators

Jully 29, 2003 -- WASHINGTON (AP) - Government mediators have opened talks with officials from Verizon Communications and two unions representing nearly 80,000 East Coast workers to try to avert a walkout Saturday.

The Federal Mediation and Conciliation Service asked company and union leaders to meet after negotiations under way since June 16 failed to produce an agreement.

Verizon workers in 13 Eastern and mid-Atlantic states and the District of Columbia are represented by the Communications Workers of America and the International Brotherhood of Electrical Workers.

They have voted to strike if new deals aren't reached with the company by midnight Saturday, when the current contracts expire. Those contracts were reached after an 18-day strike by workers in 2000.

Sticking points in negotiations include wages, job security, rising health care costs and future unionization of other Verizon operations, including its wireless division.

The company announced higher second-quarter earnings Tuesday, led by strong growth in new long-distance and mobile phone customers. It is lagging behind rivals in attracting customers for high-speed DSL Internet service despite aggressive price cuts.

Verizon, the nation's largest phone company, reported earnings of $338 million compared with a loss of $2.12 billion in the corresponding quarter of 2002.
 
 

Workers at Verizon's Roanoke, Va., Call Center Complain about Stress

Jul. 28 -- Roanoke Times -- The salaries are exceptional.  The benefits can't be beat.

But for some employees at Verizon's Roanoke call center, that's not enough. Despite making about $24 an hour, some of the company's 158 call center workers describe unreasonable management expectations. "Your brain is numb at the end of the day," one employee said. That worker dissatisfaction remains a sticking point in contract negotiations between a union and Verizon.

Employees interviewed for this story asked not to be identified for fear of losing their jobs.

The national contract between Verizon and the Communications Workers of America -- which represents about 80,000 Verizon workers nationally -- expires at midnight Saturday, and a strike appears likely. Verizon has about 900 employees in Southwest Virginia and 12,400 across Virginia.

Disputes between the company and the union about retiree benefits, wages and working conditions led to a three-week strike in 2000. The strike strained Verizon's ability to install new lines and make timely repairs as management filled in for striking workers. The company said it's ready to fill in and minimize customer effects this time.

Many of the same issues linger during this year's contract negotiations. Verizon officials said the company's call centers are anything but oppressive. And they add that Verizon must set high expectations for employees and closely manage performance to help the company keep pace with its telecommunications rivals.

"We operate in a fiercely competitive environment," said Paul Miller, a company spokesman. "We want to continue to provide our workers with the best wages and benefits in the business, but we need to remain competitive to do so."

Barry Meador, area vice president for CWA Local 2204, said, "We understand the economy. We're not unreasonable. We're going for a 2 to 3 percent cost-of-living increase."

Since contract talks began, this powerful union and this giant company, with more than $67 billion in revenue last year, appear to be talking past each other.

Service representatives told The Roanoke Times they get satisfaction from helping customers. But some resent having to try to sell a Verizon service or package to each customer, especially when callers are senior citizens who may be on fixed incomes.

When callers phone in with problems, service representatives must acknowledge and respond accordingly, but they also have to read a sales script verbatim.

Union officials said service representatives endure unnecessary stress because management strictly monitors their work. This often results in dismissals and suspensions, they said. One employee was suspended several times in the past four months for not meeting sales quotas. "If I get a comeback from a caller who says 'No, I don't want it,' I know how I feel when I get calls at home. I get irritated," a worker said. A retired employee, John Goodhart Sr., said "The whole game is to increase revenue." He said he was pushed into retirement and says he was suspended two or three times.

He recalled a call from a person who wanted to disconnect a deceased family member's phone.

"Yet, I was expected to sell a service to the deceased's relatives.

That's pretty extreme and incredibly difficult," Goodhart said. Verizon said no attempts are made to sell anything to the relatives of the deceased if the caller makes that situation apparent. At times, managers do go into a room and together randomly monitor individual calls so they can score each representative's performance. "Periodically listening to our consultants' conversations with customers helps us ensure that our customers are well served," Miller said. However, some employees say managers use this to target representatives who have taken medical leave or who have had personality conflicts with team leaders.

The number of employees at the Airport Road center has dropped from about 250 to about 160 in recent years, Meador said. Workers there each field 50 to 70 calls a day from residents in Virginia, West Virginia, Washington, D.C., and Maryland, which means workers must stay abreast of many rules and changes.

Employees cannot stay on the phone with one person for more than six or seven minutes. One employee was given a stopwatch for being on the phone too long with one caller. Management lowers the time limits so employees can take more calls, union officials said.

Pat Rieley, the center's manager, said employees undergo training for 12 to 16 weeks before they take calls, and management works hard to reduce stress. She uses promotions and sales contests to encourage competition among workers. Top salespeople can get rewarded with day- to week long trips.

Some workers also said they resent how the company monitors their bathroom use, sometimes asking "Are you OK?" after a certain period has passed.

"It felt like you were in kindergarten," a worker said. "It takes one minute to get to the bathroom, one minute to do your business and one minute to return to your seat."

Verizon acknowledged it monitors bathroom visits. "If we didn't do this," Miller said, "some of our employees, unfortunately, would abuse the privilege and disappear for 30 minutes at a time, leaving fewer people to answer incoming calls from customers." He said the consultants get two 15-minute breaks a day and a half-hour of "closed time," in which they're not taking incoming calls. They can use this time to return phone calls or go to the bathroom. That's not totally true, Goodhart said. The representatives cannot go to the bathroom during the closed time.

"The call center is a gold-plated sweatshop," Goodhart said.

Miller disputes that charge.

"Our employees at Airport Road are among the best-compensated workers in the Roanoke Valley. These service consultants earn close to $47,000 a year, excluding overtime pay. What's more, their benefits are among the best in the industry," Miller said. "For this, they work less than 40 hours a week - 37.5. They get two 15-minute breaks and a lunch break of up to one hour, depending on their specific schedule. Their surroundings are impeccably clean and comfortable."

Another complaint, according to union officials, is that about four employees are suspended each week at the Roanoke call center. Verizon disputed that number. Rieley said less than 5 percent are suspended or terminated because of job performance over a year or more. The company said it loses $600 million a year to absenteeism nationally, noting 6 percent of unionized workers are out each day. The average absenteeism rate in Roanoke is between 12 and 15 percent a month, Rieley said.

Employees counter that the stressful work environment leads to absenteeism and health problems.

Bill Sonnik, health care benefits coordinator, said absenteeism is a result of Verizon wanting to do more with fewer people. Stressed employees will take sick time under the Family Medical Leave Act.

Less than 2 percent of employees abuse the FMLA system, said Sonnik, a union appointee who is on Verizon's payroll.

Rieley said that with some employees, abuse occurs on a daily basis. Some workers said they legitimately took sick leave but were punished by management.

Corey Mabry said he believes he was terminated in May for taking medical leave after his surgery in July 2002 and following frequent hospitalization of his baby.

He filed a complaint with Virginia's labor board, arguing he had worked enough hours to qualify for a medical absence. "The money isn't worth it," Mabry said. "The job was causing marital problems. I went to rehab for being stressed out at Verizon. I went to marriage counseling to get through this."

At least five employees said they rely on antidepressants, anti-anxiety drugs and visits to counselors, psychologists and psychiatrists to deal with the stress at work.

Others, such as Christine Sander, quit.

She worked at Verizon's call center for 4 1/2 years before resigning May 1.

"I woke up that morning and said, 'This is it.'" She liked the pay, sales bonuses and benefits. But the fear of losing a job because sales may be down one day became too stressful. "Sometimes you end up sacrificing service for sales," she said. "Money isn't everything."
 
 
 

CWA TAPE TRANSCRIPT
TO: OUR FELLOW CWA 1101 MEMBERS
FROM: ANGEL FELICIANO, EXEC. V.P., CWA LOCAL 1101
DATE: Monday, July 28, 2003

"As a result of power work in our building our tape and phone system had to be
  shut down for this weekend, we apologize for any inconvenience.

  In the meantime negotiations continue with the company which apparently is in
  no hurry to reach agreement.

  Come midnight Saturday the company will reap what it is sowing. Let there be
  no mistake, this strike will be by your hands the SOB's, that's Seidenberg,
  Odum and Babbio by the way.

  All members are to continue operation brave heart.

  Thank you for calling and please stay in touch with these tapes."

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Verizon Mid-Atlantic Bargaining & Mobilization
CWA/IBEW Common issues bargaining report 7-26-03
 

The union and company met today in common issues bargaining. The union presented a counter proposal in response to the company's proposals presendted on Friday.

The table recessed while the company reviews the union's proposals. The union stands ready to bargain throughout the weekend.

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A Union Battle in Commercials
By STEVEN GREENHOUSE
 

July 25, 2003 -- NYTimes -- LABOR battles are often fought on the picket lines, but Verizon and its largest union are dueling to get the upper hand in an unusual battle of newspaper ads and spot broadcast messages.

Facing an Aug. 2 contract-negotiation deadline, Verizon and the union, the Communications Workers of America, have poured more than $1 million into advertising in a dozen Northeastern cities, straining to win public sympathy and throw each other on the defensive.

Verizon has run full-page ads featuring a large photo of a waiter and a customer in a diner. As the middle-aged waiter pours a pot of coffee for a customer at the counter, he asks: "Charlie had almost all his medical bills covered? Who does he work for?"

The customer replies, "Verizon."

In the text below, the advertisement seeks to convince the public — and perhaps union members — that Verizon's workers have a good deal. "Our union-represented employees currently have some of the best benefits in the industry," the ad says. The proof, it says, is that technicians in New York average $84,000 in annual salary and benefits, receive up to five weeks' vacation and rank No. 1 for pension benefits among workers at the nation's 10 largest companies.

Verizon makes the same point and uses much of the same language in 30-second television spots with the same characters. The campaign was created by one of its regular agencies, Draft Worldwide in New York, part of the Interpublic Group of Companies.

Noting the telecommunications slump, the company is demanding that the union, which represents 60,000 Verizon employees from Maine to Virginia, agree to loosen job security protections and that workers contribute more toward health coverage. The union is resisting the notion of their workers' paying more for health insurance and it wants management to agree to ways to make it easier to unionize nearly 20,000 workers at Verizon Wireless, a joint venture owned 55 percent by Verizon and 45 percent by the Vodafone Group of Britain.

Verizon is in ways using the ads to go over the heads of labor leaders and appeal directly to its unionized workers. Indeed, the ads show that the two sides recognize the importance of public support.

"Public opinion is going to matter in this battle," a spokesman for the Communications Workers, Robert Master, said.

The union has replied pointedly with a half-page ad that began running yesterday. The ad mocks Verizon for using models rather than real workers in its ads. Its headline says: "Real People. Real Jobs. In Real Jeopardy."

Then the ad, showing three real Verizon workers standing stiffly, says, "Have you seen Verizon's `diner' ads where actors go on and on about how good benefits are at Verizon? Well, think about what real people, in real diners, would say if they knew Verizon was trying to cut the very same employee health benefits it's bragging about."

A Verizon spokesman, Eric Rabe, defended the ads, saying it was common for companies to use models. "But the facts are what they are," he said, "and even if the union accepts what's on the table right now on health coverage, the workers' plan would be much better than what the vast majority of American workers have, and better than what all other telecommunications workers have."

In interviews, company officials said that the union's members pay only 5 percent of their annual health costs and that it was only fair for them to pay more when health costs are climbing more than 12 percent a year.
•

In its newspaper and broadcast ads, the union has sought to rebut this argument by noting that Verizon had $4 billion in profit last year and asserting that its chief executive, Ivan G. Seidenberg, received many thousands of stock options last year.

A newspaper ad the union ran last week showed a well-dressed executive sliding dozens of $100 bills into his pocket. (It's a model, not Mr. Seidenberg, Verizon officials point out.) The ad began: "$58.4 million for 1 guy or health care for 34,600 families? Verizon's making the wrong choice."

The ad then noted that Verizon wants 34,600 retirees, who now contribute little toward health coverage, to pay $60 million more for health benefits each year through higher premiums and co-payments.

Jeffrey Miller, the union's communications director, said, "This particular ad talks about the fact that this is a wealthy company that rewards its executives extremely well while it's demanding such things as cutbacks in health care for active and retired workers." The ad, like a high-polished commercial the union broadcast in December, was created by GMMB in Washington, part of the Omnicom Group.

The two sides have accused each other of distortions. The union said Mr. Seidenberg's stock options would rise by 10 percent in value annually over 10 years, but Verizon officials said that figure was optimistic bordering on unrealistic. Rather, they say, Mr. Seidenberg took a pay cut.

"They're using selective data," Mr. Rabe said. "Ivan took a decrease in compensation last year. They've mischaracterized it completely."

Similarly, labor leaders accuse Verizon of exaggerating workers' pay levels. Mr. Master, the union spokesman, said that the base salary for Verizon's union members in New York is $52,000. He said that the company has downsized so much that workers average $7,500 in overtime each year.

"Fifty-two thousand a year is not an outrageous amount of money," Mr. Master said. "What they're doing is a smoke screen for the fact that their top executives are making tens of millions in compensation and options, and they're asking us to make major sacrifices."

Cutting through all the arguments and charged language, some labor experts say that reaching a deal by Aug. 2 will be difficult unless management agrees to make it easier to unionize workers at Verizon Wireless and the union agrees to increase health contributions and to give management more flexibility to reduce the work force.

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Verizon labor fight heats up in advertising
By Michele Gershberg

NEW YORK, July 25 (Reuters) - A labor-relations-turned- public-relations battle at Verizon Communications <VZ.N> is heating up as a contract deadline approaches, but media experts warn both sides against cranking up the nastiness factor.

In the past week, the No. 1 U.S. telephone company and its largest union have thrown down the gauntlet in advertisements placed on television, radio and newspapers, bringing their dispute to a public that has no say in the outcome but which would be directly affected by any job action.

The ads appeared just as Verizon workers authorized union leaders last week to call a strike if negotiations on health care costs, job security and other issues are not resolved by the expiration of the current contract on Aug. 2.

The campaigns both try to evoke the familiar but elusive concept of "regular" Americans, with appeals to the public's heartstrings and sense of fairness as well as accusations that the other side is misleading the public.

A Verizon print ad shows two men sitting at a diner, where three eggs still cost close to $1, discussing medical coverage. The text below describes the wage and benefits package for the company's technicians.

The union shot back with a notice chiding Verizon for the stylized portrayal, raising the question of "what would real people, in real diners" would say about the phone company's efforts to cut the same health benefits being discussed.

'IMPORTANT FIGHT'

"We're certainly looking at more advertising as we get close to the August 2 contract expiration date. This is a very important fight for our union," said Candice Johnson, a spokeswoman for the Communications Workers of America union that represents some 60,000 Verizon employees.

Verizon spokesman John Bonomo said the company's advertisements are meant primarily as a message to employees "that they work for a company's that's ranked near the top of all (benefit) categories."

Verizon is working with ad agency Draft, a unit of Interpublic Group of Cos. <IPG.N>, while the CWA is working with GMMB of the Omnicom Group <OMC.N>.

Media experts noted that advertising had already become a key part of the public relations tool kit in previous disputes involving actors, teachers and telephone company workers.

But they said the past could offer some sobering lessons on such campaigns.

One advertising expert who has been privy to labor talks said a media battle between a communications giant and a union was not likely to win much sympathy from the wider public for either side.

"I don't see the point behind involving the public in a labor dispute... I can't believe it's directed at them. It must be directed at progressively active stockholders," the source said.

Mike McKenna, president and chief executive of advertising agency Marsteller, which has worked on similar disputes, said the campaigns must avoid straying from or coloring the facts.

"You need to make sure you're not only factually correct, but you are absolutely doing the right thing," he said. "It goes too far when it gets to the level of negative political advertising, which I think makes everybody look bad at the end."
 
 

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Verizon Mid-Atlantic Bargaining & Mobilization
CWA/IBEW VERIZON COMMON ISSUES BARGAINING JULY 25TH, 2003

The union and company met today, the company put a comprehensive package on the table. Verizon described the package as meeting the competitive needs of the business! The company was emphatic that "current employment security language must be eliminated". The company is willing to offer employment security to some employees but not all! Verizon continues to demand two-tiers and concessions for new hires, active and retired employees. The meeting adjourned so the union can review the new package and develop its response.

Even a quick review of the package shows that this is still the most retrogressive package we have ever seen at this late stage of bargaining! Our hope of avoiding a strike is dimming in light of this. The company is determined to leave our younger members unprotected and with fewer benefits. Our union continues to resist this wedge!

We are very impressed by the effort and support of the majority of our members, but we also know that some have not made the commitment to their jobs and their future that is needed. In most cases they are the very people who would be impacted the most by this package. If you are someone that has not done everything possible to support this effort, now is the time!

This round of bargaining is more about the future then it is today. We are fighting to protect the legacy gained and protected by generations! You are defending the best contract ever and your way of life. We will be looking back at this round of bargaining for many years to come. We need to do everything we can now so we can be proud later!

The union bargaining committee will be working throughout the weekend and stands available to meet with the company!

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Verizon Mid-Atlantic Bargaining & Mobilization
CWA/IBEW – Verizon Common Issues Bargaining
Thursday, July 24, 2003
 

Common Issues Bargaining resumed today and there was an in depth and often angry discussion of the RAMP (Regional Associate Mobility) Plan. The Union highlighted the unfair and discriminatory treatment of our members who aspire to be promoted, and argued for a fairer and more open system of promotions and transfers.

As we move towards August 2nd, we are further from an agreement than at any time in the past. There is no indication that the company is interested in an agreement before the contract expires and we must be completely prepared to strike if necessary.

We are really pleased at the reports of increasing MOBILIZATION. Not only are these activities putting pressure on the company, but they are solidifying our members. We will not only gain a good contract, but we will be stronger Unions as a result of these efforts. Remember – what we do together is protected, concerted activity. From now to August 2nd, we have put out our best effort.

Bargaining is scheduled to resume tomorrow and the Unions are available to bargain throughout the weekend.
 
 

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CWA TAPE TRANSCRIPT
 

TO: OUR FELLOW CWA 1101 MEMBERS
FROM: ANGEL FELICIANO, EXEC. V.P., CWA LOCAL 1101
DATE: Wednesday, July 23, 2003

"The Union's Regional Committee continues to meet with the Company.

The Company could not provide answers to the Union Committee on why they need the retrogressive demands they have proposed.

The Company apparently believes that they are strong enough to take away everything we have fought for over the years.

We cannot - WE WILL NOT - give in to these greedy, irresponsible people who run Verizon.

ALL MEMBERS, INCLUDING THE FORMERLY LAYED-OFF, ARE URGED TO FILL OUT THEIR MEMBER RELIEF FUNDS FORMS AS SOON AS POSSIBLE TO MAKE SURE THEY DON'T MISS OUT ON ANY BENEFITS.

All formerly layed off Members should remember to call the number on their reinstatement letter to let the Company know they are returning.

Thank you for calling and please stay in touch with these tapes."

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Verizons Negotiations with East Coast Unions Go Long Distance

Jul. 23 -- Knight-Ridder / Tribune Business News --Verizon Communications and the two unions that represent 75,000 of its workers on the East Coast still have many issues to resolve in contract negotiations as they approach the Aug. 2 expiration of their current agreements.

Formal talks have been taking place almost daily since mid-June, and one union negotiator said that major issues remain unresolved.

During the past five weeks, "we didn't make any progress at all," said William McGowan, business manager for International Brotherhood of Electrical Workers Local 2323, the union that represents about 1,050 of the 1,300 Verizon workers in Rhode Island. McGowan is one of the IBEW negotiators.

The forum for the talks moved on Monday from Marlboro, Mass. to Rye Town, N.Y. so that the IBEW could work more closely with the Communications Workers of America, the other union that is also negotiating with Verizon, McGowan said. The CWA represents a large contingent of Verizon workers in New York, and its contract expires at the same time.

IBEW-represented employees voted last week to give union leaders permission to call a strike without further membership action.

Verizon spokesman Jack Hoey declined to characterize the talks, except that say they are ongoing.

"We continue to believe we ought be to able to get an agreement without a strike," Hoey said.

Nonetheless, Verizon has contingency plans in place, including training managers to fill in for striking workers, he said. "It's only prudent should there be a strike," Hoey said. "We fully expect to perform installations and repairs, and expect to be open for business."

He said customers can use the Verizon Web site to contact the company, order services, pay bills or report problems.

Verizon is seeking significant changes in its labor contracts, such as relaxing restrictions that make it difficult for the company to lay off workers or to move work from one geographic region to another.

Hoey of Verizon explains that the telephone business has become much more competitive over the past three years, and the company needs more flexibility to better compete.

"Our proposals really reflect the complex and competitive nature of our business in 2003 and beyond," Hoey said.

Verizon's traditional telephone business has been losing customers to competitors. The company served 598,417 access lines in Rhode Island at the end of last year, down 8.6 percent from 654,872 in 2001, according to figures posted on Verizon's Web site. Business access lines fell by 10.6 percent, while residential lines fell by 7.6 percent.

Verizon won't say how much market share it holds now. About a year ago, when the company was seeking permission to offer long-distance service, it estimated that it served about 85 percent of the telephone lines in Rhode Island.

Verizon's revenues for in-state services last year fell to $234.2 million, a 13-percent decline from 2001 when they were about $270.3 million.

McGowan said the union is willing to work with the company to cut back on costs, but wants to protect job security.

The union strongly opposes a change sought by Verizon that would allow the company to lay off any worker hired after April 3, 1994, McGowan said.

He pointed out that about half of the 1,050 IBEW members in Rhode Island were hired after that date, which means the company could eliminate more than 500 jobs in the state under its current proposal.

"We know that the company is going to batten down the hatches on this next job-security agreement," McGowan said. "It's something they do not want to negotiate with the union. We know we've got a battle on our hands."

The current agreement allows the company to lay off employees only if the company is affected financially by an event beyond its control.

Last year, Verizon invoked that aspect of the agreement when it laid off several thousand workers, including about 35 in Rhode Island. The company said that pressures resulting from competition and declining telephone lines made the cutbacks necessary.

The union challenged that assertion, arguing that it was part of Verizon's own efforts that brought on competition. The company supported competition in the local phone business to help it gain federal approval to enter the long-distance business.

An arbitrator sided with the union, saying its current labor agreement didn't allow the company to lay off workers for financial reasons. The arbitrator ordered Verizon to offer jobs and back pay to the workers it laid off or transferred. Some 31 workers who lost their jobs in Rhode Island will be able to return to work on July