Verizon’s Latest EIPP Offer

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CWA District 1, October 10, 2014

Memo from Dennis Trainor, Assistant to Chris Shelton, Vice President, District One.

We have received a proposal from Verizon regarding a surplus offer. One of the provisions of the Company’s proposal is to offer an option to make this offer on a local by local basis. The National Union has told the Company that we are not interested in dividing our Union in this way. We are in discussions with all of our locals regarding the remaining provisions of the proposal and what our response will be.

Earlier today we found out that the Company is planning to send an e mail to employees this afternoon regarding this situation.  As usual, when dealing with Verizon their communication will cause confusion in the ranks and is being sent to all employees, even ones not included in the Company’s proposal.

Please be assured that we will provide any updates regarding this matter as they develop.

Email to employees below.

VERIZON PROPOSES SPECIAL ENHANCED INCENTIVE OFFER

10-10-2014

The Company continues to have a significant associate surplus in certain titles and locations in New York and New England. To address this force problem in a way that is beneficial to those associates, the Company has made a proposal to CWA District 1 to extend a special offer to them. The proposal would provide the following enhancements to the contractual Enhanced Income Protection Plan (EIPP) program for eligible associates voluntarily leaving under the offer:

  • A one-time bonus of $50,000. This is a $40,000 increase over the existing $10,000 voluntary termination bonus provided for in the labor contracts.
  • 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. This would increase the maximum payout from $66,000 up to $88,000.
  • A protected interest rate used for pension lump sum conversion, which could be particularly valuable if interest rates increase.

The Company’s proposal contains two options. The first is a statewide offer by surplus title by FAA. The second option is an offer by union local and surplus title which would allow a particular local(s) to participate in the incentive offer even if other locals did not wish to participate. CWA District 1 may select either of these two options.

We look forward to continuing our discussion with the union regarding this offer.