Jul 25, 2015
New York – At a rally today with thousands of workers and supporters, the Communications Workers of America announced that 86% of Verizon workers voted over the last two weeks to authorize a strike if necessary. The contract expires at 12 midnight on Saturday August 1 and covers 39,000 CWA and IBEW represented telephone workers from Massachusetts to Virginia.
“Our members are clear and they are determined – they reject management’s harsh concessionary demands, including the elimination of job security, sharp increases in workers’ health care costs, and slashing retirement security. Verizon made $9.6 billion in profits in 2014, and reported $4.4 billion in profits just in the 2015 second quarter alone. Their demands are completely outrageous and unwarranted,” said Dennis Trainor, Vice President for CWA District One.
The union and its supporters also pointed to the company’s refusal to build out its state-of-the-art FiOS network and its lack of investment in maintaining the original copper network.
“On the one hand, Verizon refuses to build its high-speed FiOS network in lower-income areas. And on the other, they are systemically ignoring maintenance needs on their landline network,” said Ed Mooney, Vice President for CWA District 2-13, which covers Pennsylvania to Virginia. “This leaves customers at the mercy of a cable monopoly or stuck with deteriorating service while Verizon executives and shareholders rake in billions.”
A damning audit of Verizon’s FiOS rollout in New York City found that Verizon has failed to meet its promise to deliver high-speed fiber optic internet and television to everyone in the city who wanted it. During its negotiations for a city franchise, Verizon promised that the entire city would be wired with fiber optic cables by June 2014 and that after that date, everyone who wanted FiOS would get it within six months to a year. The audit found that despite claiming that it had wired the whole city by November 2014, Verizon systematically continues to refuse orders for service. The audit also found that Verizon stonewalled the audit process.
In addition, rates for basic telephone service have increased in recent years, even as Verizon has refused to expand their broadband services into many cities and rural communities, and service quality has greatly deteriorated. Verizon’s declining service quality especially impacts customers who cannot afford more advanced cable services, or who live in areas with few options for cable or wireless services.
In 2005, New York’s Public Service Commission (PSC) eliminated automatic fines for Verizon’s telephone service quality failures, reasoning that “competition” would improve services. Instead, service quality plunged. In the 3rd quarter of 2010, Verizon cleared only 1.2% of out of service complaints within 24 hours, almost 79 percentage points lower than the PSC’s 80% requirement. Rather than reverse course, the PSC changed its measurements, cutting out 92% of customers from service quality measurements and consolidating 28 repair service bureaus into 5 regions. On paper, terrible service quality was almost miraculously transformed. In reality, service quality continued to decline.
“The 2.5 million members of the New York State AFL-CIO will stand side by side and shoulder to shoulder with our brothers and sisters of CWA and IBEW in their fight for fairness,” said Mario Cilento, President of the New York State AFL-CIO. “It is through their hard work and dedication that Verizon continues to rake in huge profits. Yet bargaining proposals offered by Verizon punish workers by taking away job security, reducing pension benefits, and increasing health care costs. The dedicated men and women of CWA and IBEW deserve better. Our brothers and sisters will have the full resources of the NYS AFL-CIO at their disposal until a fair contract is reached.”
39,000 workers are currently negotiating new contracts at Verizon. Fortune Magazine ranked Verizon the 15th largest corporation in America in 2014, with revenues of $127 billion, profits of $9.6 billion, and market capitalization of $198.4 billion. Verizon had profits of $28 billion over the last five years, and paid its top five executives $249 million during that time.
On July 21st, Verizon reported profits of $4.4 billion in 2Q2015 on revenues of $32.2 billion. The company also reported that during the first six months of 2015 it has paid out over $9.3 billion to shareholders in dividends and stock buybacks, an increase of almost $5.8 billion over the first half of last year. In the Wireline division, Operating Cash Flow rose to 23.5%, and operating income doubled, from 2.6% to 5.3%. FiOS continues to expand and succeed, now constituting 79% of Verizon consumer revenues on the wireline side, and achieving penetration rates of 35.7% for video and 41.4% for internet in markets where it is competing.
But at the bargaining table, the story is different. Verizon is demanding:
Elimination of long-standing job security protections including protections against layoffs and forced transfers.
Slashing retirement security.
Sharply increasing health care cost contributions. Higher deductibles, co-pays and premium sharing. Remove the union’s right to negotiate over retiree health care.
Vastly increasing ability to contract out of work.
Off-shoring call center jobs.
Elimination of cost-of-living raises.
Eliminate Accident Disability Plan for workers injured on the job.
Eliminate 20-year old Family Care Leave policy.