Verizon Takes another Swing at Employees on Strike

By Bizclik Editor


Verizon spokesman Richard Young said that the company will no longer provide benefits for striking workers.

“Verizon is spending many millions of dollars a day providing health care for workers who willingly decided to strike,” Young said. “If they’re not employed and not working for the company, we’re not going to fund their pensions.”

According to one of the unions representing Verizon’s striking employees, this is the worst threat Verizon has made since negotiations began.

“It’s a tactic they’re using to try to scare the people,” International Brotherhood of Electrical Workers Business Manager Bill Huber told Bloomberg after the union received Verizon’s statement.

The majority of the 45,000 Verizon employees on strike work for the company’s landline telephone segment, which has been declining significantly in the past five years. Verizon’s base of landline customers has dropped from 45 million to 25 million.

See top stories in the WDM network:

Top Law Firms

Reinventing Your Business with Social Media and Blogging

Exec Bio: Richard Berwick of Qualcomm

“The existing contract provisions, negotiated initially when Verizon was under far less competitive pressure, are not in line with the economic realities of business today,” Verizon’s Chief Executive Lowell McAdam told employees in a letter. “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.”

In the wake of its landline decline, Verizon wants union employees to take fewer sick days, accept a freeze on pension benefits and make larger contributions to their healthcare plans. Employees, represented by the Communications Workers of America and the International Brotherhood of Electrical Workers say that Verizon’s $10 billion net income is more than sufficient and that the company is “destroying middle-class lives.”

“It’s true that wireline is losing lines, but many of them are going to Verizon Wireless,” said Robert Master on behalf of the wireline workers on strike. “Regardless of how many lines they’ve lost, they’re obviously operating as an enormously profitable company. Considering these profit numbers and the huge amount that Verizon’s top executives are being paid, it’s not fair that our members are the ones to have to make sacrifices.”


Featured Articles

Top 10 cybersecurity specialists in the US

As cyber attacks grow in frequency and become increasingly sophisticated, Business Chief looks at the top 10 cybersecurity specialists in the US.

Silicon Valley Bank collapse: How did we get here?

US authorities have stepped in to protect all Silicon Valley Bank customers following the second-largest bank failure in the country's history

Top 10 best new leadership books by women to read in 2023

To mark IWD, here’s our pick of the best new leadership books – all penned by impressive women at the forefront of the ever-evolving world of work

Eight of the best business leadership podcasts

Leadership & Strategy

CEO John Pagano, leading Saudi Arabia's Red Sea Global

Leadership & Strategy

Top 10 female CEOs according to Fortune’s Global 500 list

Leadership & Strategy