The contract negotiated by the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) with the telecommunications company Verizon represents a betrayal of the 65,000 Verizon workers represented by the two unions. It cuts benefits and sets the stage for the company to eliminate thousands of jobs.
The agreement was reached one week after the August 2 expiration of the previous five-year contract. The unions refused to call a strike, despite a 91 percent vote to authorize a walkout. Instead, various protest stunts were organized while the membership was kept in the dark not only about the status of the negotiations, but even about the unions’ demands.
Workers and retirees will see a continued erosion of their living standards. The three-year pact calls for wage and pension increases of 3.25 percent, 3.5 percent and 3.75 percent, with a cost-of-living increase in only the final year. Already this year, the consumer price index has risen well beyond the wage increases in the contract. According to the US government, transportation costs have risen 13.4 percent since last year and energy costs are up a whopping 19.3 percent over just one year ago.
On health care, workers in New York and the New England states will be forced into a preferred providers organization, or PPO. Under the PPO, workers will be able to see only those doctors approved by the plan and will have to get referrals before seeing a specialist. Many services are not covered and there is a cap on benefits.
Both active and retired workers will see their prescription drug program cut and will be forced to pay a larger share of the cost of brand name medications.
The contract also sets the stage for Verizon to eliminate thousands of jobs. Since 2003, when the last contract was signed, Verizon has cut 13,000 union jobs and approximately 40,000 management jobs through attrition and layoffs. In addition, Verizon has forced thousands of other workers, mostly in management, to either move or be laid off and replaced by younger, lower-salary employees.
Union leadership continues down the path of helping the corporations to rape the worker of the benefits that they have fought for for so long. With the approach of an election, I do not see the worker any better off, no matter who gets elected.