Verizon admits to cutting an undisclosed number of jobs at retail locations connected with combining in-store duties
Verizon Communications has reportedly slashed jobs at retail locations, with a union representative claiming the number could be in the thousands.
According to ABC News, Verizon has confirmed that some retail locations “will have fewer employees,” though the carrier would not disclose the actual number of job cuts.
An organizing coordinator for the Communications Workers of America said the cuts could be in the thousands, though a Verizon Communications spokeswoman said that was an “exaggeration.” Jobs were said to be impacted by the combining of previously separate jobs of inventory stockers and customer service representatives.
Verizon earlier this year came to a new four-year agreement with the CWA and fellow labor union the International Brotherhood of Electrical Workers following a tense month-and-a half standoff. The agreement also included a first contract for wireless retail store workers.
The agreement, covering approximately 40,000 employees, called for workers to receive a 10.5% wage increase over the four-year term of the deal, with the company committed to hiring approximately 1,300 new workers. Verizon Communications, for its part, said it gained the ability to offer special buyout incentives to employees and health care cost savings for current and retired workers under its pension plan.
In reporting lower than expected second-quarter growth, the telecom giant noted the contract squabble resulted in a net loss of both Fios internet and video service connections during the quarter. The company noted the dispute “negatively impacted wireline operating income” and that it expected the financial impact to stay on the books for the remainder of the year.
Verizon Communications CFO Fran Shammo, speaking earlier this year at an investor conference, explained the costs came from overtime paid to management employees, hiring contract workers to cover for striking workers and a decrease in new business installations.
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