Verizon Business Techs in California and Florida Gain Benefits of New Contracts and Voice on the Job

Verizon Business and Video Hub technicians who work in California and Florida will soon be united by new labor agreements that go into effect in late December 2010. 

Many of the Verizon Business techs are former MCI technicians who came over to Verizon after it acquired MCI in January 2006.

As a result of CWA District Nine negotiations last May for a new agreement covering Verizon union members in California, about 152 Verizon Business techs and 4 Video Hub techs will become eligible for union membership there.  Similar negotiations in July for a new contract covering Verizon employees in Florida will allow IBEW Local 824 to gain 73 new Verizon Business techs and 12 Video Hub techs.

These two Verizon Business bargaining units are the first to gain union recognition since a breakthrough contract agreement was reached between Verizon management and the CWA and IBEW in 2008.  That contract covered about 600 Verizon Business technicians from Virginia to Maine. 

Winning collective bargaining rights and a voice at work for the Verizon Business techs represents a significant step forward in both unions' campaign to "tear down the wall" artificially constructed by management between union and non-union sectors at Verizon Communications.  

Telecom workers begin year-long campaign for good jobs and reliable services at Verizon

Hundreds of telephone workers united in the International Brotherhood of Electrical Workers (IBEW) and the Communications Workers of America (CWA) rallied for good jobs on Thursday, August 5 at Verizon's New England headquarters. The current labor agreement with Verizon expires on August 6, 2011.

Myles Calvey, Business Manager of IBEW Local 2222 and chair of the New England telephone workers' bargaining committee was the Master of Ceremonies. "A year before our contracts expire, we're sending a message to Verizon's top management that we'll fight for the preservation of good jobs, quality health care and secure pension benefits in negotiations next year," said Calvey.

"Some very profitable companies are using the recession as an excuse to demand givebacks and concessions from their employees," added Calvey. "We want to make it clear to management that union members aren't going to fall for that nonsense at Verizon."

Verizon's second quarter finances showed $9.8 billion in cash flow from operations, up nearly 30 percent from 2009. The $108 billion company had $5.5 billion in free cash flow, up nearly 77 percent from the second quarter in 2009.

Verizon had significant job cuts in 2010. There are now 24,500 fewer employees than one year ago -- and it spent $2.3 billion in the second quarter dealing with union negotiated buyouts to avoid layoffs. "We protected our members during unprecedented job cuts," said Calvey. "But I expect that job security will continue to be a major issue in next year's contract talks."

Lt. Gov. Tim Murray was the first rally speaker. "Deval Patrick and I have been working to promote economic development across the Commonwealth," said Murray. "With that priority, we want to make sure that all our employers respect workers' rights and provide the good jobs our communities need. Verizon is one of Massachusetts' largest employers. We will stand with you to support good wages and working conditions for all its employees."

Other speakers at the rally included Congressman Stephen F. Lynch; Sec. of State Bill Galvin; Rep. Marty Walsh; Mass. AFL-CIO Pres. Bob Haynes; Executive Sec.-Tres. of the Greater Boston Labor Council Rich Rogers; Jobs with Justice Director Russ Davis; Ed Fitzpatrick, Pres., IBEW Local 2222; Don Trementozzi, Pres., CWA Local 1400; Bill McGowan, Bus. Mgr, IBEW Local 2323; Ed Starr, Bus. Mgr, IBEW Local 2321; Dave Keating, Bus. Mgr, IBEW Local 2325; and John Rowley, Bus. Mgr, IBEW Local 2324.

The workforce reductions, buyouts and layoffs in recent years stem largely from landline losses, but also from Verizon's massive shift away from rural America. Despite strong union opposition, Verizon has sold off its landlines in Hawaii, Maine, New Hampshire, Vermont and most recently in West Virginia and 13 other states, substantially reducing union membership.

Meanwhile, the company has focused its investments in the largely unregulated -- and as yet mostly nonunion wireless side of its business.

"Verizon's top management has built an artificial wall separating wireless and other business operations from wireline," said Don Trementozzi, President of CWA Local 1400. "Management is using this wall to block members from the high growth, high profit segments of the company."

"We are gearing up to fight for enhanced organizing rights for Verizon Wireless workers and to help them unite for wages and working conditions comparable to ours," added Trementozzi. "If we don't, Verizon will continue to use its 'divide and conquer' tactics to undermine our contracts." Local 1400 represents hundreds of Verizon workers at call centers throughout Massachusetts.

Both unions have been educating members and building support for enhanced organizing rights for Verizon Wireless employees. Members at IBEW Local 2222 and delegates to the recent CWA national convention have passed resolutions in support of the campaign.

Because customer and community support is so critical to winning good contracts, telecom workers have been building support in anticipation of the 2011 contract.

Members at both unions very actively supported striking workers at Shaw's Methuen warehouse. "I'll be there to support the telephone workers," said UFCW Local 791 member Laurie Comeau-Hunter Mahoney who attended the rally. "We can never repay IBEW and CWA enough for all that they have done for Shaw's workers."

Pictures from the rally may be viewed on the Picasa photo sharing website at:

http://picasaweb.google.com/randwilson.aflcio/AYearAndADayVerizonContractCampaignRally

About 8,000 Verizon workers in Massachusetts and Rhode Island are united in the IBEW and CWA.

CWA Members Release New Report on Increased Risks of Verizon-Frontier deal in West Virginia

Wearing red union t-shirts and holding signs protesting landline sell-offs and job cuts, more than a fifty Verizon union members and retirees rallied on May 6 before the start of the company's annual meeting in Little Rock, AR.

CWA and IBEW union members greeted Verizon shareholders with a leaflet headlined, "Reputation Matters: Verizon is on the Wrong Track." Copies of the leaflet and statements by union leaders and retires at the shareholder meeting are available from Rand Wilson at: rand@mindspring.com.

Members traveled from all across the country to attend the meeting. CWA local unions sent members from Maryland, Pennsylvania, Texas, Virginia and West Virginia. IBEW locals sent members from Florida, Massachusetts and New Jersey.

After leafleting shareholders, members went inside to attend the annual meeting. They showed support for proposals to improve corporate governance and participated in the question and answer session at the end of the meeting with Verizon CEO Ivan Seidenberg.

CWA District Two VP Ron Collins spoke at length about the proposed sale of Verizon's landlines in West Virginia and 13 other states to Frontier Communications.

"Residents will be strapped with a company that has high debt and limited -- if any ability -- to fix its problems to provide quality service, let alone build out high speed networks," he said.

At the meeting, Collins announced the release of a new report: "Preventing a Telecom Disaster: New Information Concerning the Verizon-Frontier Deal that Will Determine the Future of Telecommunications in West Virginia." In the report, CWA experts make the case that especially in West Virginia the risks of the sale far outweigh any potential benefits.

"Frontier will be increasing its debt by 75 percent and it's in a shakier position now than when this deal was first proposed," Collins said. "If Verizon wants to sell its landlines, it should find a buyer that has the financial, technical and operational resources to meet West Virginia's needs."

Copies of the report are available here

The report was simultaneously released at the Public Service Commission in Charleston, WV by CWA Intl. Rep. Elaine Harris. "These new findings are of grave concern to West Virginia customers," said Harris. "If this deal is approved, Frontier will control 85 percent of our state's telephone lines. In the other states, that figure is only about eight percent."

CWA local union officers personally carried the research report to news media outlets across the state. As a result, it was extensively covered not only in the Charleston news media but in many smaller communities.

Pictures from the demonstration and report release can be seen on the Picasa photo sharing site.

ICC decision on Verizon-Frontier deal abandons public interest

The Illinois Commerce Commission's (ICC) decision to approve the sale of Verizon's landline operations in Illinois to Frontier Communications could fail to protect the public interest and may jeopardize future access to high speed services.

The decision flies in the face of a very strong recommendation to deny the sale made by Illinois Administrative Law Judge Lisa M. Tapia. In a March 9 proposed order on the Verizon-Frontier application, Tapia wrote: "the proposed reorganization will diminish Frontier's ability to provide adequate, reliable, efficient, safe and least-cost public utility service; and will significantly impair Frontier's ability to raise necessary capital on reasonable terms and to maintain a reasonable capital structure…"

"We have been concerned from the beginning about the impact of this proposed merger on Frontier's financial stability given the enormous debt that it would incur," said Ron Kastner, Business Manager of Local 21, the largest IBEW telecom union in Illinois. "We are deeply disappointed that the ICC has made a ruling that contradicts the judge's recommendation."

The ICC decision means that only regulators at the West Virginia Public Service Commission (PSC) and the Federal Communications Commission have the power to stop approval of the deal.

"This is discouraging news to everyone concerned about the future of telecommunications in rural America," said Ron Collins, Vice President for CWA's District Two who has been leading the campaign against the sale in West Virginia. "We are not stopping our fight against this deal. Verizon's landlines in West Virginia cover virtually the entire state and it is the former Bell System carrier. Because of Frontier's financial weakness, the entire state of West Virginia would be affected if this deal were to close. That is very different than Verizon's and Frontier's relatively small presence in the states that have approved the transaction so far."

Union intervenors may have more comments on the ICC decision after the written order is made public.

More information about why citizens are mobilizing to stop the Verizon sale to Frontier is at: www.verizonfrontierdeal.org. For information about ending the digital divide visit: www.speedmatters.org.

West Virginia union members rally at FCC against Verizon-Frontier deal

Telecom workers, supporters rally at FCC against proposed sale of Verizon landlines to Frontier in 14-states

Members voice concerns in meetings with Commissioner Copps and FCC staff

Washington –With over 150 supporters chanting, "No more corporate greed...We need high speed!" nearly 50 CWA members who work for Verizon in West Virginia marched into the Federal Communications Commission (FCC) in Washington to voice their concerns about the potential sale of their state's telephone lines to much smaller Frontier Communications.

Verizon Communications is selling its landlines in West Virginia and 13 other states using a tax free loophole. Similar deals by Verizon in other states have resulted in bankruptcy, lost jobs, unmet broadband promises and poor service.

The Verizon workers traveled for over seven hours to attend the FCC rally and meetings with Commissioner Michael J. Copps and senior FCC staff.

CWA President Larry Cohen and District 2 Vice President Ron Collins lead off the meeting with Copps by providing a searing critique of the proposed sale.

"Our opposition to the proposed sale is based on one over-arching concern: Frontier is not financially fit to own and operate Verizon's landline operations, including Verizon West Virginia," said Cohen.

"As the Illinois Commerce Commission's Administrative Law Judge, the West Virginia Consumer Advocate Division and the Public Service Commission staff have all found, this deal will result in a lack of financial fitness that cannot be cured or subject to a compromise – it will simply render Frontier unfit to assume the responsibility for 4.8 million access lines serving citizens of the 14 affected states with an essential public service," said Collins.

At the meeting, members told Commissioner Copps that the proposed deal is too risky for West Virginia and the other 13 effected states.

"Frontier doesn't have the financial wherewithal to acquire operations that would triple its size. It cannot safely absorb the huge additional debt burden that comes with this deal," said Debra Shepherd, a Verizon customer consultant from Wheeling and member of CWA Local 2006. "Frontier's business model is to milk its operations in order to make excessive cash payments to its shareholders. Frontier is not now, and will not be, financially sound."

"Did Frontier actually check out the condition of Verizon's operations?" asked Rick Cox, a member from CWA Local 2011 in Clarksburg. "Let me tell you, it's in very bad shape. It's just not believable that Frontier will be able to cut expenses by 21 percent and then do a better job than Verizon which is more profitable and has much greater economies of scale."

"West Virginia already has a deep digital divide and this deal will only make it worse," said David Fox, an outside technician from Fairmont and member of CWA Local 2003. "If the Frontier sale is approved, it would seriously hinder us from achieving the FCC's new National Broadband Plan standards."

Frontier has only made modest commitments to deploy service at speeds between 1 and 3 megabits per second in Illinois, Ohio, Oregon, and Washington State. In contrast, the FCC has set a national goal of a minimum broadband speed of 4 megabits per second with at least 100 million households having access to 50 megabits per second service by 2015. Moreover, Frontier has no plans to expand beyond Verizon's existing commitments higher-speed "fiber-to-the-home" services that Verizon currently provides in portions of four states Frontier wants to acquire (Indiana, Oregon, South Carolina and Washington State).

CWA Representative Elaine Harris presented Copps with letters against the sale from West Virginia elected officials and more than five thousands signatures of citizens on petitions.

Many labor and community supporters attended the rally before the meeting. Speakers included Kenny Perdue, President, WV AFL-CIO, John Breyault, Vice President for Public Policy, Telecommunications, and Fraud, National Consumers League, Bob Erickson, International Rep., IBEW, Jimmy Gurganus, Vice President, CWA Telecommunications, Freda Williams, WV Boone County rural area customer, Ed Coyle, Executive Director, Alliance for Retired Americans, and Gary Zuckett, Executive Director, WV Citizen Action Group.

Pictures from the rally and meeting may be viewed on the Picasa photo sharing site at:
http://picasaweb.google.com/randwilson.aflcio/FCCRallyAgainstVerizonFrontierDealAndMeetingWithCommissionerCopps

The FCC's five commissioners can deny the deal if a majority determines that it isn't in the public interest. In March, an Administrative Law Judge recommended that the Illinois Commerce Commission reject the Verizon-Frontier application. Similarly, the West Virginia Public Service Commission staff and the state's consumer advocate strongly oppose the deal.

CWA or IBEW have intervened in state regulatory proceedings on the proposed sale in West Virginia, Illinois, Ohio, and Washington. Both unions are also intervenors in the case before the Federal Communications Commission. The FCC is expected to take up the case after the states have concluded their reviews.

No decision has been made yet in the proceedings before the commissions in West Virginia, Illinois and Washington State. The unions' request for a rehearing is currently pending in Ohio.

More information about why citizens are mobilizing to stop the Verizon sale to Frontier is at: www.verizonfrontierdeal.org. For information about ending the digital divide visit: www.speedmatters.org.

Union's final brief slams Frontier's high-risk, unsustainable business model

Union intervenors make final arguments in support of Illinois ALJ's proposed order on Verizon-Frontier deal

Frontier's high-risk, unsustainable business model would harm Illinois consumers

Deal falls short on two key ICC criteria that must be met by law

Springfield, IL -- In a legal brief filed with the Illinois Commerce Commission (ICC) on Thursday, March 25 the IBEW urged that commissioners reject the proposed sale of Verizon's landlines to Frontier as being contrary to the public interest.

The union's final "brief in reply to exceptions" submitted to the ICC, refuted the two companies' pleadings and reiterated its support for Administrative Law Judge Lisa M. Tapia's proposed order denying the Verizon-Frontier application and rejecting the proposed merger.

The union's 20-page brief supports the ALJ's findings that Frontier's business model is not viable and that the deal would harm customer service.

Financially viability
"IBEW's opposition is based on one over-arching concern that is accurately reflected in the Proposed Order: Frontier is not financially fit to own and operate Verizon's landline operations, including Verizon Illinois," wrote Scott J. Rubin, the labor intervenors' attorney, "As the ALJ correctly found, a lack of financial fitness cannot be cured or subject to a compromise – it simply renders the applicant unfit to assume the responsibility for serving more than half a million citizens of Illinois with an essential public service."

"…Frontier also pays out far more to stockholders than it reinvests in its infrastructure. [F]rom 2005 through 2008 Frontier made capital investments of $1.1 billion, but it paid stockholders more than $2.1 billion during that same time."

"…Frontier is headed for a crash: within two or three years, it will run out of retained earnings and will no longer be able to pay dividends in excess of its earnings. This would require Frontier to drastically reduce its dividend – by 60% or more – and then come up with a new strategy for providing value to its stockholders."

Quality of service
"The ALJ properly found that Frontier's record of service quality performance in other jurisdictions is questionable," Rubin wrote. "She is correct that there are reasons to believe that Frontier will not be able to maintain Verizon's current level of service quality, let alone improve on that level of performance."

Inadequate Broadband
Frontier will also fail to deliver high speed, quality broadband. "Under Frontier, Illinois faces the very real prospect of every customer in Verizon's service area being "underserved" because Frontier is committing to deploy service at a speed of only 1.5 megabits per second," the brief stated.

"In contrast, the FCC's National Broadband Plan sets a national goal of a minimum broadband speed of 4 megabits per second with at least 100 million households having access to 50 megabit per second service by 2015 – just two years after Frontier hopes to provide only 85 percent of its Illinois customers with 1.5 megabit per second service."

Good for Wall Street, Bad for Illinois and America
The IBEW's brief also identified how the deal puts Wall Street in the drivers seat, "The fact that some group of investment banks must provide more than $3 billion in capital to Frontier – and that Frontier has so far been unwilling or unable to obtain such financing – should lead the Commission to question Frontier’s financial soundness; it should not give the Commission comfort that some unknown group of lenders will eventually present Frontier with a set of unknown terms and conditions…The Commission cannot let Wall Street dictate the terms and conditions under which Frontier will have to operate… The Commission cannot simply assume that investment bankers will be looking out for the best interests of Illinois consumers; indeed, exactly the opposite might be true."

"The IBEW and CWA only want to ensure that the people who work for Verizon in Illinois, and the public they serve, will not be harmed by the proposed sale," said Ron Kastner, Business Manager of Local 21, the largest IBEW telecom union in Illinois. "As the ALJ correctly found, the deal as it is presently structured is just too risky, and Frontier is too financially unstable, for the sale to be in the public interest."

CWA or IBEW have intervened in state regulatory proceedings on the proposed sale in West Virginia, Illinois, Ohio, and Washington. Both unions are also intervenors in the case before the Federal Communications Commission.

No decision has been made yet in the proceedings before the commissions in West Virginia and Washington state or the Federal Communications Commission. Commissions in Arizona, California, Nevada, Ohio, Oregon and South Carolina have approved settlements. There was no state regulatory review in Idaho, Indiana, Michigan, North Carolina or Wisconsin. Frontier recently announced that it also will need to seek approval from the Virginia Corporation Commission.

More information about why citizens are mobilizing to stop the Verizon sale to Frontier is at: www.verizonfrontierdeal.org. For information about ending the digital divide visit: www.speedmatters.org.

Telephone workers rally for workplace safety

About 75 telecom workers and community supporters rallied in support of a Verizon technician in Lynn, MA who was recently threatened by a supervisor while acting in his capacity as an IBEW Local 2321 steward during a "captive audience" safety meeting.

In response to the steward's statement that management often retaliates against workers who ask questions during meetings, the foreman forcefully pointed his finger in the steward's face and said, "you're dead!!" For emphasis, he said it twice.

It is an unfair labor practice to threaten stewards for acting on behalf of the membership and it is just plain wrong to use violent threats to threaten anyone in the workplace. Verizon management is creating a "hostile work environment" for its employees in the Lynn garage and elsewhere.

IBEW union members are not going to tolerate violent threats in the workplace. They are demanding that Verizon apologize to the steward and take immediate steps to end the "hostile work environment" that it is responsible for in Lynn.

IBEW Local 2321's Business Manager Ed Starr was the Master of Ceremonies and principal organizer for the rally.

Speakers at the rally included IBEW T-6 Chair and Local 2222 Business Manager Myles Calvey, North Shore Labor Council President Jeff Crosby, CWA Local 1400 President Don Trementozzi, Jobs with Justice director Russ Davis, AFL-CIO Legislative Director Tim Sullivan, State Rep. Mark Falzone; Rep. Steven M. Walsh, and Lynn City Councilor Daniel F. Cahill.

One of the high points of the rally was a moving speech by Mike Upton, a strike captain and member of UFCW Local 791 who is on strike at the Shaw's warehouse in Methuen.

Pictures from the rally may be viewed on the Picasa photo sharing site at:
http://picasaweb.google.com/randwilson.aflcio/TelephoneWorkersRallyForWorkplaceSafety
(Higher resolution photos are available from Rand Wilson).