Verizon Wireless Unit Reaches Tentative Agreement With Union
Verizon Wireless, a unit of Verizon Communications, on Sept. 2 announced a tentative agreement with 51 members of the Communications Workers of America in the New York City area, a deal that could "set the stage for a broader contract settlement later this week involving 78,000 workers" for both Verizon Wireless and Verizon Communications, the New York Times reports (Greenhouse, New York Times, 9/3). Health care coverage has been a central issue in the talks between the company and about 78,000 workers in the mid-Atlantic and Northeast regions. While Verizon spends about $2.7 billion per year for health care costs, union officials have maintained that the company's profits are high enough that it should continue to pay increased health costs (Kaiser Daily Health Policy Report, 8/4). Under terms of the five-year Verizon Wireless agreement, top-level employees would receive 3% annual raises, lower-level employees would receive 2% annual raises, and for the first time, union members would receive seniority rights during layoffs or job recalls, according to union officials. In addition, seniority changes would provide 7% yearly raises for many workers, union officials said (New York Times, 9/3). However, the agreement does not address a neutrality clause that expires in August 2004 that would allow unionization without company interference, the Wall Street Journal reports. The Journal reports that people close to the negotiations say the deal removes a "substantial impediment" to larger negotiations between Verizon Communications and CWA and the International Brotherhood of Electrical Workers, another union (Tejada, Wall Street Journal, 9/3). Both union and company officials had said the negotiations with the 51 New York City technicians had been slowing agreement on a wider deal (New York Times, 9/3). Company and union negotiators have continued to meet with a federal mediator since their contract expired Aug. 2, the Washington Post reports (Noguchi, Washington Post, 9/3). According to the Times, a tentative agreement between the unions and Verizon Communications could come as early as Sept. 3 or Sept. 4 (New York Times, 9/3).
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