Company Declares Surplus of 829 Positions from Across New York

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Overview of Surplus in New York
By Verizon

Verizon Wireline and Corporate Staff units on February 24, 2012, declared a surplus of 829 positions in various locations, organizations and job titles across New York.

The surplus was declared as a process change. For the surplus declaration made, there will be no layoffs. The company will extend the Enhanced Income Protection Plan (EIPP) offer to eligible employees.

The surplus is a result of changes in the telecom industry, which are creating increased competition and providing consumers with greater choices for voice, data and video services. Wireless substitution also continues to accelerate.

As these trends continue, Wireline will experience ongoing declines in traditional core services and growth in broadband connections. This will require us to adjust our force accordingly to meet marketplace requirements and competition, meaning we will need to reduce force in some parts of the business while increasing staff in others.

Business units have evaluated current staffing needs in New York and are taking appropriate steps to re-position the work force to meet the demands of the growing broadband marketplace now and in the future, using the EIPP offer as a way to achieve needed reductions voluntarily to position our force for the long term.

Reducing the Surplus

The company has advised the CWA and IBEW Local 2213 that it will follow the steps of the Force Adjustment Plan outlined in the labor contract for reducing a surplus.

The company is hopeful the surplus can be eliminated through the following  voluntary steps:

  • The company will extend the voluntary EIPP offer to all New York associates who are in the affected job titles and locations with a surplus.
  • Once the EIPP process is complete, the company will re-evaluate the status of the surplus, if any remains, and its staffing needs. At that time, if necessary, the company will develop plans for additional adjustments or rebalancing of the work force.

EIPP Offer Timeline

  • March 4 – The 15-day EIPP volunteer period opens.
  • March 18 – EIPP volunteer period closes.
  • April 1 – Off-payroll date for associates approved to leave.

Overview of the Voluntary EIPP Offer

Eligible employees should begin to receive at their homes an EIPP package during the week ending March 3. Eligible employees who wish to leave must officially accept the offer between March 4 and close of business on March 18, as outlined in the package. The off-payroll date will be April 1 for employees who are approved to leave under the EIPP offer.

Under the EIPP, eligible associates who accept the offer and are approved to leave will receive double the standard amount of separation pay they normally would receive for each completed year of net credited service up to and including 30 years. That means the maximum amount of separation pay for an employee in New York is raised to $66,058.00.

For volunteering to leave the company under a surplus declaration, eligible associates, who are approved to leave, will receive a one-time bonus of $10,000 in addition to their severance package. Also, associates, who are not eligible for retiree medical coverage, will receive six months continuation of medical coverage with no premium contributions.  These additional benefits were negotiated in order to encourage voluntary retirements for eliminating surpluses.

Employees will have the option to take their pension in a lump-sum payment.

  • Employees volunteering to leave under the offer will be accepted on a seniority basis. It is possible that some volunteers will not be approved to leave under the offer.