Verizon Communications has been in deadlocked negotiations with union workers about pension and health care benefits since June 22. One deadline for a deal already came and went with no progress.
The Communications Workers of America and the International Brotherhood of Electrical Workers also are opposed to Verizon’s goal to move away from its fiber business as much of their work comes from fiber installation, which may be a key reason Verizon is not in a hurry to make a deal.
The unions struck back in 2011, but because Verizon was still very focused on its copper wireline business, the unions had a much more powerful bargaining chip. Verizon’s wireless workers are not unionized.
In February, the carrier agreed to sell landline assets in California, Florida and Texas to Frontier Communications for $10.5 billion in cash.
“They’ll disclaim this, but they’ve completely abandoned the copper network, and that’s where the work is,” CWA New York Office VP Bob Master said.
Recently, the Federal Communications Commission has been brought into the conversation about Verizon’s fiber goals. Ratepayer advocates in New Jersey filed papers with the FCC criticizing the way Verizon is making the move. They claim Verizon is failing to deliver on promises to deliver quality wireline services to its customers.
“Verizon’s actions have caused significant confusion and have alarmed its customers,” Stephanie Brand of the New Jersey Rate Counsel said in a letter to the FCC.
She said Verizon’s moves are “unilaterally imposed” and provide “insufficient deadlines and requirements.”
A Verizon representative denies the claims that it is abandoning fiber customers. “Companies like Verizon and AT&T and others have been investing in fiber over the last decade or so,” Verizon spokesman Lee Gierczynski said. “We are continuing to work with customers to make the transition a positive experience for them where we have the fiber network in place.”
The deadline for a strike was Aug. 1, but the unions decided not to strike even though they “remain far apart.” As of now, the talks are dead. Neither Verizon nor the unions have given a timetable for when they may resume.
