Verizon and NY CWA Fail to Agree to Special Enhanced Offer

After several weeks of discussions regarding a targeted Special Enhanced Voluntary Incentive Offer, the Company and the union were not successful in reaching a deal. The purpose in making this Special Offer was to address workforce staffing requirements, and the Company’s proposal would have mitigated the potential need to layoff associates, a process that will now proceed over the next few weeks. Although Verizon has been unable to reach an agreement with the NY CWA, Verizon has reached an agreement with the CWA and IBEW across the entire Mid-Atlantic region with the same enhancements which are set forth below. This includes an agreement with CWA District One relating to commercial employees in NJ.

The Special Offer that was rejected by the union would have provided the following enhancements to eligible NY CWA associates leaving under the offer:

A One Time Bonus of $50,000 – which is an increase over the existing $10,000 voluntary termination bonus provided for in the labor contracts.

A protected interest rate used for pension lump sum conversion – which could have been particularly valuable if interest rates increase

The elimination of age-based pension reductions for service pension eligible associates under age 55 with less than 30 years of service. This reduction equates to 6% per year, up to a maximum of 30%

The raising of caps on EIPP payments from thirty years of service to forty years – which would have increased the maximum payout from $66,000 up to $88,000.

In addition to the financial benefits of the Special Offer, the Company proposed the following:

For every Field Technician in Force Adjustment Areas 4, 5 and 6 who chose to accept the offer, one potential layoff next month would be avoided. The Company believes that it is very likely that the Special Offer would have substantially reduced or entirely eliminated the need for layoffs next month.

Depending on the number of upstate associates who accepted the Special Offer, the Company would have reduced through the end of 2014 the number of upstate associates who are temporarily transferred downstate.

Through the end of 2014 there would not have been any permanent involuntary transfers into or within the downstate area except in certain limited circumstances.

Bringing the installation of certain MDU microduct work in house.

An enhanced FiOS build at 2 wire centers to begin in 2014 with the potential for an enhanced build at a 3rd wire center in Suffolk in 2015 if a FiOS penetration target in Suffolk was achieved.

This targeted Special Offer would have been available to approximately 4,200 NY CWA represented associates in certain surplus titles and areas. The Company had informed the union that this Special Offer would only make financial sense if the volunteer period could be completed by the end of 2013. Accordingly, employees should not anticipate that the Company will re-offer these special enhancements anytime soon.

Source: Verizon Human Resources