A court appointed arbitrator ruled that Verizon Communications must rehire 2,312 workers that it laid-off in December 2002 because the cutbacks were not permitted under the labor agreement between the company and its union, the Communications Workers of America. There are 1,129 employees who were laid off in other states, and those layoffs are pending arbitration in those states.
In response, Verizon said it would abide by the ruling but that the decision does not change the difficult business conditions facing the company — the same conditions it blames for the layoffs. Verizon also said that the unions will have to balance these job security issues with the changing conditions in the telecommunications industry during the contract negotiations that are currently underway.
The Communications Workers of America hailed the ruling as very welcome news for thousands of workers and their families. The union noted that the existing labor contract stipulates that Verizon can’t lay off workers for reasons of “process change” having to do with technology or various business changes, and that layoffs can only take place as a result of special conditions caused by “external events.”http://www.verizon.com
http://www.cwa-union.org
- In June 2003, the Communications Workers of America and Verizon began negotiations on a new labor contract. The CWA represents some 60,000 employees at Verizon Communications. In a press statement at the time, CWA President Morton Bahr pointed out that Verizon brought in revenues of $67.6 billion and reported profits of $4.1 billion in 2002, despite the telecom slump. While the U.S. productivity rate grew 5.9% between 2000-2002, in that same period, Verizon’s productivity, measured in revenue per employee, grew 14.9%. In addition to the preservation of quality jobs and access to jobs in the new growth areas of the company, the CWA is calling on Verizon for improvements in pensions and a wage increase that accounts for the workers’ increased productivity.
- At the end of Q1 2003, Verizon had 227,000 employees , down from 245,000 at the same point last year.