The ongoing Verizon union strike witnesses the telecom operator offer up an ultimatum that fails to impress union leaders
The ongoing labor strike at Verizon Communications has hit an inflection point as the telecom operator said it has made its “last, best, final offer to union leaders,” which appears to have landed with a thud.
Verizon said the offer was put in front of leaders of the Communications Workers of America and the International Brotherhood of Electrical Workers, which represent approximately 36,000 wireline employees, as well as those employees. The offer includes a number of details, including a 7.5% increase in wages over the contract term, increased health care expense contributions and the continuation of current 401(k) contributions.
One potential sticking point is a “special incentives” clause that varies depending on which of the five regions/unions represented by the employees.
For instance, the New England IBEW offer calls for Verizon to gain the ability to make a “special voluntary incentive offer to you up to once per year. The terms of the offer to leave the business would be similar to the special offers in 2010 and 2014. Plus, if you choose to accept one of these voluntary offers, you will also receive the next scheduled pension band increase on an accelerated basis.” Acceptance of this stipulation is tied to the Verizon “job security” offer, which states: “If the parties reach agreement on the company’s special incentive proposal, and you have job security today, you will continue to have job security for the term of the contract. To be clear: the company is offering to continue job security contingent only on agreement to the special incentive proposal.”
However, for the New York IBEW offer, the job security section states “if the parties reach agreement on three workforce flexibility proposals … and you have job security today, you will continue to have job security for the term of the contract.” The New York/New England CWA offer adds a fourth “workforce flexibility proposal.”
“Mid-Atlantic” employees represented by both unions are being offered the same job security provisions, though their “special incentives” state: “Verizon will gain the ability to make a special voluntary incentive offer to you up to once per year. The terms of the offer to leave the business would be similar to the special offers in 2010, 2013 and 2014. Plus, if you choose to accept one of these voluntary offers, you will also receive the next scheduled pension band increase on an accelerated basis.”
Verizon also posted a handful of video clips explaining its position.
“These items and the other terms of our last, best, final offer represent a fair deal that is good for employees and would provide the foundation for quality jobs into the future,” Verizon noted. “Please take a close look at the attachments. Read for yourself exactly what Verizon is proposing: great jobs with outstanding compensation and excellent benefits as we continue to work together in an exceptionally competitive environment.”
IBEW seemed unimpressed with the latest offer or the noted finality of the negotiations.
“Sadly, Verizon has refused to compromise on its most extreme demands, like its call to further outsource American jobs overseas, while rejecting our offer to save the company millions in health-care spending without gouging retirees,” said IBEW International President Lonnie Stephenson, in a statement. “The company’s final offer doesn’t address those concerns and will do nothing to keep good jobs here in America. Real bargaining involves both parties having a real discussion – not a one-sided presentation posted online. We believe collective bargaining should be done across the table, not on YouTube.”
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